Hi,
I have around 495k on variable with Suncorp at 3.19%. I just called them so they offering 2.29% fixed for 2 years.
Do you think this is the right time at that rate or should I wait for another couple of weeks for more drop?
More info: Its just brand new home built in August 2020 / First Home - owner occupied / Victoria 3064
Any advise on this will be appreciated.
Thanks Jass
I am with NAB as well and called them for some other query and while talking to them I casually asked if they can tweak my home loan interest and they slashed it from 3.80% to 3.30% without any fuss. I think i'll call them back in couple of months ask if they can push it down any further or I'll look out somewhere else. Let's hope they slash it further down.
Apparently you can ask for a discount once a year.
I wouldn't be in a hurry to lock in anything at this point in time OP.
There have been suggestions that there will be another interest rate cut before the end of the year.
In any case I doubt if there will be a rate rise in at least the next 2 - 3 years.
Disclaimer: I am not qualified to give financial advice ( or advise, j/k) and I may be completely wrong.
Interest rate cut likely just around the corner (though it's likely this will do nothing to spur the market back into growth)
Melbourne and Sydney's property markets are both cooked (as far as a bubble is concerned) and with a recession, extremely low immigration and no sign of a recession busting mining boom in sight i don't see interest rates going up anytime soon.
Although lets be honest the RBA didn't exactly help themselves by cutting interest rates while property prices were going through the roof, giving every man, woman and his dog a loan.
variable with Suncorp at 3.19%
Is this a discounted rate already? If not, you should ask them for a discount on the variable rate to see how close it is vs fixed rate.
HSBC has 2.69 variable with offset
Big 4 can get very close to that, or even match it
With $2k cashback
Negotiate hard and banks will waive package fee $400 and settlement fee $150 ish
You will have to pay discharge fee
Depends on circumstances but I would stay away from fixed loans
When there is cashback deals around, you cannot leave under fixed loans and take advantage of the caskback
Are you able to move banks? Will depend on your current financial situation. Just had a look and TicToc are offering 2.19% variable at the moment. $10 per months offset fee.
I moved a Suncorp and HSBC loan to them in the middle of this year as Suncorp/HSBC wouldn't match them. A few thousand a year in savings for us. The only times I have fixed I have ended up worse off than if I had taken variable. I can't see any rate rises happening soon, so I'd stick with variable personally.
Not advice. Find out the fees involved. Calculate cost of your switch, and total cost of your old and new loan.
Just remember that most fixed rate loans do not have offset facility. Take this into account.
Fixed mine last month from 2.9% to 2.29% for 2 years with CBA. I'm saving around $400 a month.
One of the main reasons we had variable is because the offset account, but then we realised the money sitting in the offset can give us way better return if we invest it somewhere else.
Depends on your circumstances.
I am with NAB, they offered me 2.19% for 2 years, I took it. Why?
Given an opportunity, I would have loved to move to another bank with a better rate, but I took it as this was the only possible way to save some cash. I was at 3.29% before this.
If you decide to stay with your bank, ask them to offer you 2% or you are moving away.
Disclaimer: not financial advice.