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• 

  brendanm on 04/08/2022 - 22:01

  +1

  Staying variable for me.

• 

  Donaldhump on 04/08/2022 - 22:23

  +1

  mines fixed at 2.19% ill stick with that:)

  fixed rates carry risk if you terminate early and the rate has gone down, you missed the boat just stay variable

  • 

    Maxdax on 04/08/2022 - 22:28

    How long fixed for ?

    If one is staring at the fixed rate cliff ( as they call all low fr mortgages starting to mature from early 2023) and have a sizeable loan ($1M plus) this might be an option ?

    • 

      Donaldhump on 04/08/2022 - 22:36

      4 years (3 years remaining). i have cash ready to offset it, could have offset it from the start, but can earn more elsewhere so thought be cute to fix it.

      yes there will be a tsunami ~2023/24.

• 

  Benoffie on 04/08/2022 - 22:38

  +2

  I have been variable at 7-8% and at 2%.

  Variable always works out cheaper across the 25-30 yr life of the loan.

  • 

    DingoBilly on 05/08/2022 - 08:31

    +2

    Definitely not always, but wouldn't say it's a good time to fix now.

    I'm on a 2.24% fixed rate for example for another 2 years. I can't see how variable would be better than fixed assuming you timed it right. Couple it with a $4,000 refinance offer and you're far ahead of any variable rate offer you would have had.

    • 

      Benoffie on 05/08/2022 - 18:19

      +1

      The eternal issue with fixed is the very nature of it.

      If, like us, you're intent on paying down your mortgage quickly, fixed is terrible. The limits and penalties are just too onerous.

      We were stung previously back in the day and even after trying a split, would never go back to it.

      • 

        tomclancy on 06/08/2022 - 08:38

        You can get fixed loans with offset accounts attached

• 

  Krankite on 05/08/2022 - 08:12

  +3

  Don't assume you can "beat" the bank by better predicting interest rates. If interest rates going above 5% is too big a risk then lock it in otherwise stay with variable and take on the risk yourself.

  • 

    LemonShapedRock on 05/08/2022 - 09:36

    Banks get their funding mainly from other overseas banks in the form of bonds.

    EG Banks borrow at at a fixed 3% for 4 years from other overseas banks/RBA then offer a product to customers that is 4.99% for 4 years and pocket the difference.

    It's less about beating the banks and more about betting that Reserve Bank rates will go in the direction you're hoping.

    But yes I agree with you, in the long run you're probably better off staying variable.

• 

  jjjaar on 05/08/2022 - 08:32

  +1

  Bookmarking this post to come back to in 2 years.