Fix rate loan coming to an end, bank is offering 5.29% for 2 years with 390 fee p.a. Is it still worth it to fix it considering there might be 1-2 rate hike this year? They also offer var on 5.44%.
Home Loan Fix Rate or Not
kl2999 on 20/06/2023 - 14:59
Comments
I think the RBA has underestimated just how overheated the market is.
The rates are going to be higher for a lot longer than the media is leading everyone to believe.
The ones with the money and living mortgage free lifestyles (boomers) are still throwing money around at investment properties like its nothing.My take is that we're in a recession by November with rates not expected to drop until unemployment is comfortably back in the 4-5% range.
I'd fix it, just look at NZ's rates it you want to know where we're going to be in 6 months time.
Nobody knows how interest rates are going to go in the next 2 years.
If they did they probably don't need this site.
If you're able to afford payments at 5.29 per cent then go for it. Inflation isn't going away any time soon so interest rates will remain high (and potentially higher) for some time.
I locked my IP last month for 12 months at 5.60 which I thought was a good call.
Flip a coin. If you'd struggle financially with a higher variable rate then fixing could be a good idea.
May I ask which bank is offering this rate? Thanks
HSBC
How do you find HSBC? Thinking of refinancing to them.
I fixed my rate for 2 years, my mortgage broker told me to do it he said if anyone telling you rates are going to drop in a year its bullshit
depends how long for.. I suspect after the next two or three hikes, it will be too much & rates will be dropping by end of year and throughout next year so anything longer than 18months, variable would be better right now in my books (purely speculative of course)