my current float rate is <2%.
should I jump the gun and move to 3 or 5 year fixed?
LVR not problem as property has gone up in value (thanks covid). Unable to make decision as fixed are > 3%.
Home Loan Switch from Float to Fixed?
s26f84 on 12/02/2022 - 07:46
Comments
Our home owner to Gpd debt is like 100 percent.
The RBA won't increase rates too much as it knows it will tank lots of new home owners.
Philip Lowe won't raise the cash rate in any meaningful way to hurt assets appreciation. He doesn't want to lose his $1M paycheck nor go down in history as the person to tank the Australian economy.
Self preservation will save the cash rate.
Haha get rekt Phil
USA has 30 year fixed home loans our banks got too much power
3 year fixed maybe. 5 year no. Because it is all baked into the numbers. The banks have plenty of brains working on it.
Last year I fixed 2 years at 2% but that is because RBA said no rises until 2024. Year before that fixed for 3 years at 2% because RBA told the banks this is what they were doing.
At the moment I suspect only rates under 2% fixed is for 1 year. Depending on your view of interest rates. If it goes up 1% in 2023 and 1% in 2024 your 2% variable will average 3% over next 3 years. So why pay 3% now. Save the money and make extra repayments on it.
Tip. If ETHI (Betashares Ethical Index) is paying 5% dividend why would you put it into your house?
Tip. If ETHI (Betashares Ethical Index) is paying 5% dividend why would you put it into your house?
Why would anyone get out of 🛌 for a +5% 1Y gross gain?
Why would anyone get out of 🛌 for a +5% 1Y gross gain?
True. Just stay in bed and get bed sores. Might get a +10% gain by eating less considering you won't have to spend as much energy and probably less on heating in the winter staying under the covers.
Expect nothing else than Troll comments from you.
You're a reasonable person. Even you can see that a +5% 1Y gross gain is 💩.
Gold that doesn't move did a +2% overnight.
Even you can see that a +5% 1Y gross is 💩.
Compared to what? Cash term deposits. Home loan offset at 3% or basically loan sharking at 10%+
You also need to look at return vs volatility / risk to capital.
Gold that doesn't move did a +2% overnight.
Oxymoron right there. Can't be not moving and moving at the same time.
Split the loan 50/50 and hedge your bets