i dont know if it's only available to existing customers, but my partner got this rate with Westpac & i've confirmed that i can get it with St George (part of the same organisation) …
2 year, fixed rate, 4.99% … depending on your existing rate, it's significant …
Yeah, my savings account went from 10 to 8 and now to 6% p/a
where u getting 6% at?
Who gets 10% from a savings account? Never let the truth get in the way of a good yarn hey?
the baby boomers if you had money in the 80's
In recent years the only bank (not debenture/non guaranteed entity) that offered 10% was UBank in early 2010, and only for the first 100 customers for 3 months. Hardly a valid comparison.
I currently have a 7.1%pa TD (5 year) with Radodirect, opened in mid 2010 that pays monthly. I had an 8.5% TD with ING Direct for 1 year opened in August 2008. That's about as good as it got in the last decade.
Who was offering a savings account for 10%pa in Australia in the last 15 years?
7.1% compounding monthly is pretty damn good.
min deposit??
It's not compounding. I get 7.1%/12 paid every month. The option was to take a traditional TD that paid 7.3% once every year, or 7.1%pa paid in 12 installments. I chose the installments. The interest gets moved into another account that currently pays under 5%.
Minimum deposit with RaboDirect is $1k. Currently their offer is 5%pa for 5 years, or a bit less paid monthly. A great deal if you believe we're headed to European/USA interest rates.
Bankwest kids saver.
Care to explain this one?
Guys, guys, I use the bankwest kids saver. I am just stating it's not good for people like me. No need to neg. I'm not knocking this deal. Just stating that I had something better, although not available for most…
Also, do your research for this sort of stuff before knocking what I say.
the rate is available to existing account holders, we had email from account manager a few weeks ago
I took a 2 year fixed at ~5.2% in September, so am I able to take on this offer?
talk to your bank. We have a package of some type that costs a monthly fee. not sure what is your situation.
if you could change whenever it dropped that would go against the 'fixed' part of the deal ;)
yeah, bad news for savers, unless they've got fixed savings rates … it's all a guessing game, will they go down, will they go up … who can say?!
meanwhile, if you're saving, at least you have solice in the knowledge that you've already got money there and not paying back on something intangible …
when bank,s start to try to get people too look in low fixed rate there is only one way.
up up and away with TAA! that's right they went broke.
yeah, bad news for savers, unless they've got fixed savings rates
They do have fixed savings rates… they're called Term Deposits. And they can be fixed for as long as you want.
This same rate is available at nab. May not be advertised so walk in and ask their lender staff.
FYI, I have seen NAB customers getting discount on fix rate as well. Some people got 4.89% or 4.79%
For all you savers, I'm willing to offer you 5% for your money! :D
you're that guy from ocau!
No, he's from Nigeria and he just doesn't want to exaggerate the possible returns. (In reality they'll be 200%)
How is this a bargain?
I'm with westpac and I think i'm currently paying variable something like 7.2%
Should I go with the 4.99% deal or hope that the rates drop that far anyway? I know the reserve bank is worried that their drops haven't been enough to lower our dollar. So i'm thinking that these banks know its dropping further and want to get people fixed at 4.99% before it drops below that… OR is it simply a matter that they are all copying each other to gather new customers and/or stop people leaving?
I'm not expecting it to drop below that. I mean every time the RBA drops the rate, the banks pocket most (if not all) of it anyway and don't pass it on.
And yes, they definitely are copying each other.
I'm with Westpac and paying a variable of 5.2%. The neighbours mail got put in our letterbox by mistake and my 2 year old daughter opened it. It was their mortgage statement and I looked at their rate before poping it back in the correct letterbox. Next time I was at the bank I asked why I couldn't get that rate. They told me to phone "Customer Retention" and say I was leaving to another bank for a rate of 5.2%. Could you match it. They did by that afternoon.
Yeah, your "2 year old" just "happend" to open it…
Best finnancial decision she has made. Saved us $1000 per year!
rabbit71, you are full of it. Westpac would not give you this rate, especially on the small loan that you would have (calculated by your annual saving of $1000.00). Even if you had a previous rate of 5.3% (highly unlikely) this would mean only a 1 million dollar loan.
I think you have got mixed up between fixed and variable, you might have this on fixed.
Anyway like Risser said,
"I'd love anyone who is lower then 5.68% variable to post some proof (web link or cut and past of partial online statement, etc.) of their interest rate so I can get interest rate match."
rabbit71, I challenge you to show some proof (who did you speak to, whats the customer retention number,etc), otherwise don't post crap.
Wow, really? That is pretty high, definitely shop around, you can get at least 5.5% with CBA if you want to sell your soul and go with them like we did.
Who is offering 4.79% ?
NAB?
"Better" assumes that you think rates will go up in the two to three year period.
And fixing only makes sense if you think the rate isn't going to decrease, in this case, by more than 0.53%. (Or alternatively, want to lock in a payment amount because it gives you peace of mind and you dont happen to care if it does by more than 0.53%).
This isn't a criticism. And I dont know which way things will go. It's just a comment.
Most people are at 5.45% to 5.55% mark at this stage, so even if the rate is going to decrease, it would take 2 to 3 RBA announcements for the rate to drop to 4.99%. Therefore, the risk is very minimum givne the contract is only two years.
However, the package fee is a killer. Unless you are current customers of big four banks, it's not worth refinancing just to take advantage of this 4.99% fix rate.
I thought this 4.99% offer ended up being a high 5's or low 6's comparison rate when all the fees are taken into account?
I'd be interested in this also, as i mentioned above i'm still on something like 7.2% since getting our mortgage 4 years ago. :/ Time to rethink / change banks
There's no way you're paying that if you're variable. Has been well below that for quite some time.
I really should find out… calling them now
If you're on 7.2% with a variable loan, it's time to find a new loan shark…
If its a fixed loan, then you will need to calculate the break fee's and work out whether its beneficial changing
Cheers SBOB Nah its not fixed its variable and I could very well be talking BS on the 7.2% i'm on the phone with them now gunna find out the current figure.
Ok just called them and I'm on 5.89% so dropping to 4.99% would give me ~ 0.9% saving. It requires the premier Premier Advantage Package which is ~$380 a year. This includes platinum/gold credit cards etc. But we're already on that deal so at the end of the day we'll drop our payments by $1944 per year on our $216K loan. or ~ $37 Per Week. Which i think is substantial and worth the effort. I'm gunna see our mortgage advisor first to confirm if she thinks its a good idea.
Or just see what your current lender can do first.
Edit - just saw your comment further down.
Wired00, I'm on that package too! Will call westpac in the morning..
no additional fee's, just breakage fee
And I had toast for breakfast.
And hookers are cheaper* in UK than Australia. Your point is?
*totes made that up, but it sounds good
They're getting a way better deal than us. I heard the US has or had 0%.
We're getting shafted. Bad. But we're used to that anyway.
They are better and cheaper in Amsterdam !
but your economy is not nearly as good. how has your house price performed over there? Mine has risen over 30% in 4 years
Chronically high house prices are bad. For everyone. Think of your kids - they're screwed (even earning an Australian wage).
I would quite happily have my house value halve (at cost to myself), if it meant each of my kids had a 50% reduction in house price too, and could thereby afford their own home.
Agreed. Affordability (in both purchase price and servicing of debt) is more important to me than paying more to buy a house.
If you were into real estate investment for profit on the other hand, that's different.
or you could use your equity to help your kids…
Don't forget you pay more in council rates as the value of your property rises. If you live in your house and don't sell it the rising value is costing you more money every year.
If the federal government ever scraps stamp duty in favour of an annual property tax you'll really be crying about rising house prices.
ME Bank have had 4.99% fixed for 3 years for a while now. What the comparison rate for the westpac deal?
ME is 5.66%
I think the banks are going to start fighting each other very soon (and this 'fixed fighting scenario' out of RBA decisions is a very good indication). Banks are trying to clean up the 'fixers' before the variable rates start crashing down.
Good times ahead for borrowers, not so good for savers….
I think the best advice would be to hold tight on variable and not fix yet, there is more to come!
They are NOT going to fight each other. They Heads will have a very lovely and expensive dinner, and fix the rate for them.
How on earth would you otherwise explain the 2% difference to the RBA ?
You ever notice that deposit rates are way above the RBA cash rate as well? Don't think they're connected?
What's their current variable rate? I'm at 5.81% variable…
I just called and with the "Premier Advantage Package" that we have (which costs $380 a year) we get 5.89% So as I said above a drop of 0.9% isn't bad IMO.
What bank are you with?
I already am on a package like that at Westpac. I got two platinum credit cards, chequebook, redraws, and I pay I think $400 a year for the package.
when I first learnt they are doign 4.99 fixed. I called them and they advsied the best they can do is 5.51% variable. I am on 5.46% at the moment.
Sorry i should have said, I'm with Westpac, and probably on the same plan as you. I asked and they said all they do is send documentation, you sign it and are switched within 5 days. I want to ask our mortgage advisor first though. and ask them more questions on issues with how it effects our Offset etc
I am on 5.89% they said right over the phone that 4.99% is fine. I suggest give another call if you want
Here is a link to their website with the exact 4.99% figure. No idea why they told you 5.51%. Remember that you get a discount rate with the Premier Advantage Package (Which costs $380 - 400 per year). But that package gives a discount
http://info.westpac.com.au/homeloans/fixedrate/default.aspx?…
Don't you feel screwed by them? What if you didn't call ?
Mate i know exactly what you mean. but thats how they make their Squilions. Now we're locked in using their Credit cards etc, its too convenient and we never get around to moving away.
Hear hear to that.
I went into my Bank and asked them to match the variable of UBank.. they said they underwrote UBank so they wouldn't compete with them. Where are you getting 5.46%? I would love to have NAB price match. I'm currently at 5.68% variable.
Maybe this should be a forum post, but I'd love anyone who is lower then 5.68% variable to post some proof (web link or cut and past of partial online statement, etc.) of their interest rate so I can get interest rate match.
I am with NAB(homeside), was at 5.61 variable. rang them early this month, told them gonna leave if cant gave better offer. then they offered 5.49 variable (no annual package fee). checked with NAB too, best they gave is 5.38 variable but need their regional manager to approved. as NAB has annual fee, stayed with NAB (homeside).
when you ring, tell them u will move everything to them, like credit card, car insurance, home insurance, saving account.
Can you share with us the loan amount and LVR? Usually the higher the loan the lower the rate, hence why I ask.
5.38% with nab is a pretty good deal. When you called to leave, do you need to provide reference to competitor's lower rate? I don't know of any others that can go that low (with offset account).
You dont need a proof. 5.46% is slightly better than average at the moment. I am with Suncorp and my friend is with NAB and she get a similar rate with me if not better. Just give them a call letting them know you are leaving and see how they respond.
Most of us make extra repayments, or put our savings in the offset account to reduce the interest rate. If you like this flexibility, fixed rate loans may not suit you. No only is the rate fixed, the monthly repayment amount is also fixed. Not a single dollar more or less is allowed.
You could do a split loan - half fixed, half variable, save interest on the fixed portion, but can repay extra into your variable :) CBA do this, and also have 4.99% for 2 years fixed at the moment. I work for CBA but am not in lending.
Wait a sec.. so if you do this, you lose your offset account? i.e. no matter how much you have in there, it won't affect your repayments?
At the moment, I'm paying interest only (no principle). How will they calculate how much I have to pay? Do they assume I have $0 in my offset (as if I don't have an offset at all)?
Some banks allow extra payments with fixed mortgages, but it's usually capped. Last time I fixed, I could put 10k in extra per year.
This is what I am on. I am on fixed but can pay extra.
BOQ(Bank of Queensland) Beat it and have it at 4.96 fixed for 2 years, call the guys at Bella Vista (NSW) (02) 8808 5204 they are the best.
The comparison rate which is what we should be using to compare this product is 6.26% and higher depending on what package you choose. Information taken from http://www.westpac.com.au/personal-banking/home-loans/fixed/…
Westpace Fixed Comparison Rate 2 years 6.26%(Comparison rates under Premier Advantage Package3)
CUA Fixed comparison rate 2 years 5.79%
Members equity non members 3 year fixed rate 6.12%
Can you really use this to compare the loan??? It is only fixed for 2 years and I assume it then reverts to the standard variable rate. When you don't act after 2 years this might be ok for a comparison. But who would then pay the standard rate … or not fix again. The comparison rate is an indicator … but it could be very misleading … everyone needs to do their own maths.
comparison rates aren't the best indicators.
Once your fixed rate is over, just ask for a discount off your standard variable rate.
In this market you can easily obtain a > 0.7% off.
For anyone else out there on professional packages. Call your lenders and see if you can get put through to the retention team because you've been 'offered a better deal'.
Advise them that you've been offered 0.9% discount off your loan from St George. Show them this link http://www.stgeorge.com.au/personal/home-loans/our-home-loan…
and demand they match it.
edit: the last time westpac offered 4.99% was during the GFC. Many assumed the rates would continue to drop however they shot up as quick as they came down.
ALso, those would who did take out the 4.99% deal were given the option to refix at 4.99% for another two years.
source: broker.
why compare with the comparison rate?? that will take into account this loan for 2 years then the rate across the remaining 23 years. you will change rates over that 23 years ;)
Forever aloan
Not if you do it right!
4.99% sounds great but most fixed rate home loans don't offer redraw or an offset account. Do people on fixed rates just stash extra money into a high-interest online savings account?
3.75% fixed for 30 years currently in the U.S. or 15 year fixed for 2.75%
The end is nigh? :)
"The Bank will apply the fixed rate that is available at the loan settlement date or the date the fixed rate period commences, unless the customer locks a fixed rate in on the loan using our Fixed Rate Lock-in feature. The Fixed Rate Lock-in fee is 0.15% of the loan amount."
What do you guys think about this? The fee would be $500-1000 for most people? Is it worth the lock-in price?
ANZ is offering the same as well under Breakfree package
2 year fixed rate = 5.14 - 0.15% (Disc under breakfree) = 4.99%
very good deal I think
Do they still offer 100% offset on 2 years though ?
why bother with offset acc… I only pay I/O for my investment properties… offset is useful for PPOR
You can't get offset or make large repayments on fixed loans.
you can with st george but the rate is crap
better off doing a split to the proportion you are able to offset it by
seems like a good deal for fixed rate
by going fixed rate, to me that's saying "i think i can predict the interest rate changes better than the banks can"
very rare to actually get significant benefits from in imho
thats not taking into consideration all the added fees associated with fixed
each to their own i guess
Just remember, the interest rate is only one portion of the loan overall, dont let a low variable rate lure you in, be sure to check out everything ie offset/redraw costs/fees and so on.
REVALUATION.
If I lock in to this fantastic rate in, will they revalue my property.
I am worried that they will do this as my property will not be value to what they valued it 3 years ago.
I will possible loose my line of credit or need to pay loan mortgage insurance.
Has anyone had any experience with locking in and have they revalued it or is it is just formal paperwork?
Thanks
Terrible news for savers :-(