Bendigo Bank Complete Home Loan - Owner Occupier P&I Fixed Rate - 1 Year 4.99% p.a., 2 Years 5.29% p.a., 4 Years 5.54% p.a

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E5TOQUE on 14/02/2023 - 12:34 bendigobank.com.au (275 clicks)
Last edited 14/02/2023 - 19:09 by 1 other user

Interest rates have increased, and some people may be looking to fix their rates.
Looking around online Bendigo Bank seems to be near the best fixed rates at the moment for owner occupiers for 1, 2 and 4 years.
Their 3-year rates are not that good, so I didn't bother listing them.

Apparently, their interest rates are increasing this Friday.

They are also involved in the first home buyer schemes from the Federal and Victorian State governments, so may help first home buyers here.

1 Year Fixed = 4.99% p.a. (Comparison Rate 5.18%)
2 Year Fixed = 5.29% p.a. (CR 5.24%)
4 Year Fixed = 5.54% p.a. (CR 5.38%)

More info here:
https://www.bendigobank.com.au/personal/home-loans/rates/#Ow…

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• MaleNurse on 14/02/2023 - 12:38 Comment score below threshold.
  • 

    PainToad on 14/02/2023 - 12:42

    +5

    Look it up yourself?

  • 

    whtsthenews on 14/02/2023 - 12:53

    +4

    mate OP is not associated to Bendigo Bank or selling anything for consideration….just sharing in what they came across. If you are keen, you should take this cue and explore investment rates on bank's website

  • 

    PainToad on 14/02/2023 - 14:10

    +1

    Surprised you didn’t ask your tenants to do it for you.

• 

  Joz2988 on 14/02/2023 - 13:01

  +1

  Not sure if its still available but if you got a credit card and insurance with them too, you got a slightly better rate.

• 

  E5TOQUE on 14/02/2023 - 13:18

  Trying to figure out what the best duration would be.

  1 Year, 2 Years or 4 Years.

  What are people's thoughts?

  • 

    ksama0079 on 14/02/2023 - 15:27

    1 or 2 years, by then hopefully the IR would have reached the top and start dropping.

    • 

      E5TOQUE on 14/02/2023 - 16:16

      1 year seems to be a no brainer to lock in.
      2 years I’m not 100% sure of.

      Gamble that come February 2024 rates will be around the same or less then 5 - 5.29%

• 

  mskeggs on 14/02/2023 - 13:31

  +1

  This is pretty good evidence Bendigo's economists see rates going down in about a year.
  Lock in what you need to do to sleep at night in case they're wrong, but consider they want a margin of error and want a decent profit margin, so they don't see variable rates staying near 5%.

  • 

    cadwalader on 14/02/2023 - 13:45

    They might have also found a different source of funding or found a buyer for that debt linked security. There are still countries with cash rates lower than ours.
    .
    Could be related to upcoming/recent bond offer.

    https://www.afr.com/street-talk/bendigo-and-adelaide-bank-re…

    • 

      amaneight on 14/02/2023 - 16:32

      -1

      BOQ might acquire Bendigo Bank..

  • 

    HeyHi on 14/02/2023 - 22:39

    Two year and four year interest rates are higher than one year - does that not mean interest rate is expected to increase next year albeit by a small amount?

    • 

      mskeggs on 15/02/2023 - 07:41

      They need to price in a margin in case they are wrong, because things could change unexpectedly, so there is always a higher rate for a longer term than the bank thinks will really apply.
      So this rate implies maybe one more rate rise, give or take.
      Compare it to NAB who went on the record yesterday they expect three more, and their rates are about 1% higher for the same periods.

• 

  cadwalader on 14/02/2023 - 16:51

  I wonder how fixed rates would work with a large offset balance. Anyone has any experience with this?

  • 

    Jettblack on 15/02/2023 - 12:03

    Offset doesn’t work with fixed unless split
    Then only works on variable portion , unsure what happens if split part is less than offset amount

    • 

      cadwalader on 16/02/2023 - 16:21

      Yep, there are some fixed mortgages which give you a small allowance to offset (like 10-20k etc) from the fixed amount.

      I was wondering what is the best way to take advantage such offers (its a decent rate for 1 year in my opinion) if we had >75% of the loan balance offset. Or are fixed rates not really designed to be effectively beneficial for people with a large offset anyway because of their minimum borrowing. I guess at the stage of our repayment we're probably not profitable enough to banks either way and should just accept the suboptimal rates. Its a small but still significant amount (not pocket change) to have to cop a 0.5% interest difference on roughly 100k.