Is now a good time to fix your mortgage!!!!

[Andrew from Vista Financial]

Just food for thought.

 

Is now a good time to lock in to a low fixed rate mortgage?

 

News out recently that the American economy may have bottomed. Obviously nobody knows for definite what is going to happen to rates here but Fixed rates have actually increased recently with some of the Banks so could it be a good time to lock in to a low rate now?

 

The lowest fixed rate I have seen at the moment is 2.99% for a year ( this does have a tie in to the variable rate afterwards for a further 5 years ) and probably one of the best deals I have seen is a 3 year fixed rate for 5.39%.

 

It may even make sense for some that have locked in to a higher fixed rate to consider breaking the deal ( find out the break costs involved! these can be high! ) and locking in to a lower longer fixed rate. Of course you will have to do the maths and decide where you think rates are heading.

 

Lastly be aware that with fixed rates it is not all about the rate. There could be a situation whereby one lender has a lower 2 year fixed percentage rate than another but due to other costs involved for example application fee, monthly mortgage account fee the higher rate may work out cheaper over that particular fixed rate term.

 

So as I say just food for thought but certainly worth considering.

 

Cheers

 

Andy

 

(The above comments are just general information only and not to be regarded as advice)

[julie-ruth]

Just out of interest Andrew can you secure a morgage interest rate for a year while you look for a house.

 

Julie

[Andrew from Vista Financial]

Hi Julie

 

Not possible I'm afraid.

 

You can secure an approvement in principle for up to a year but not a rate.

 

 

 

Andy

[HEAPS GOOD !!!]

A little birdie tells me that there could be another 1% cut between now and christmas....

[Guest Russfamily]

The only reason banks bring out low fixed rate mortgages are to get you on board then sting u later, but if u can get a 25 year fixed rate mortgage at 5.1% u will have done well. Just one problem the banks wont offer that.

[Andrew from Vista Financial]

Just had notification that Westpac are increasing there fixed rate mortgages for terms longer then 2 years.

 

The change is effective from 27th May and the rate changes are approx 0.30% higher.

 

 

Regards

 

Andy

[Andrew from Vista Financial]

So CBA announced a rate rise last week to it's variable and fixed rates and were slammed by Wayne Swan (although I don't think they are worried about him too much).

 

The others Banks are also increasing their fixed rate mortgages. Today Westpac announced increases, more noticably for any Fixed rate on a 3 year or more term there is a jump of 0.5% !!!!

 

These Banks are keeping themselves off the radar by not increasing their vairiable rate but these are big increases and in Westpac's case an increase of 0.8% in less than a month without an increase to the RBA rate.

 

Andy