Home Loan Interest Rates

ShortyX on 06/12/2011 - 22:38

St George currently has 6.14% fixed for 2 years.

Worth locking in or will interest rates keep falling?

General Discussion

Comments

  • cuteduck on 06/12/2011 - 23:38

    nope.. u can get 3 year fixed rate with citibank for 5.94%

    • ShortyX on 07/12/2011 - 01:08

      Thanks

  • pauldegab on 07/12/2011 - 06:47

    i wouldn't fix it. with europe in dire straights, i can see rates coming down a lot more in 2012.

    i am currently with MyRate. They have a current comparison rate of 6.6%, before taking into account yesterday's rate drop (if they pass it on).

  • _Bruce_ on 07/12/2011 - 08:00
    +1

    I work on the basis that the banks wouldn't fix the rates unless they thought that on average they will get ahead to offset the risk. I also assume they are going to have a better handle on economic forecasting than myself, and therefore I do not fix rates.

    Of course, there are always going to be people who will get ahead, but more often this is not the case.

    • ShortyX on 07/12/2011 - 12:42

      Good info…from the comments here, I'll think I'll stay variable and shop around.

  • ShortyX on 07/12/2011 - 14:33

    Anyone with UBank? Their rate looks good.

  • freo on 07/12/2011 - 15:07
    +1

    I'm with uBank since earlier this year. They only Refinance existing home loans. No idea why. They are owned and operated by NAB.

    They're online and phone only, which would make you think their online home loan system/website is awesome, sadly it is terrible. You apply online, and then upload all your documents instead of going into a branch. That may be an important factor if you don't have access to scanner / printer easily.

    But I can deal with limited internet functionality when you get such a low rate (6.39% before any December rate cut is considered/applied). And the extra time it took me to apply is nothing when you think about the savings over 25 years … (or 1 year, or 2 years if you're a regular switcher)

    • ShortyX on 07/12/2011 - 15:11

      Do they normally pass on the full rate cuts?

      • No on 07/12/2011 - 15:45

        I've only been with them for one rate cut and they followed NAB (only 0.20 out of the 0.25).

    • _Bruce_ on 07/12/2011 - 15:37

      My guess is that only refinancing means they reduce the work/risk involved in working out if they should be giving you the loan at all, or if the property is overvalued.

  • ShortyX on 12/12/2011 - 13:29

    UBank is now 6.14%!

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