If you were to get a home loan now, would you get a fixed or variable (or combo) rate

[activeman]

Hi,

With the view to buying a house soon, I'll have to decide whether to go fixed or variable? So what would you choose, if your looking ahead from here?
I'm thinking that a variable rate is low and manageable atm, with the potential of staying good for quite a while.

And yeah, there prolly have been other threads on fixed v variable, but that was then , this is now...

Cheers

[Deej]

Variable IMO. With the world shiting itself day by day I think the only way is down right now. We have the highest rates of any country in the developed world. I recon 125 basis points between Nov 11 and Feb 12.

[=Stevo=]

+1 for variable.

Bring on lower rates and rising inflation, oh the fun.

[activeman]

RBA: Speech-Still Interesting Times

the general gist seems to indicate that inflation wont rise significantly, and therefore neither will interest rates.

[ReCon]

If the Euro gets boinked like pundits are saying in the next 3 months or so, interest rates may slide hard in the next half. Best fence sit for a while and re assess. 0% rates like the USofA? Noice

[=Stevo=]

If the Euro gets boinked like pundits are saying in the next 3 months or so, interest rates may slide hard in the next half. Best fence sit for a while and re assess. 0% rates like the USofA? Noice

so why not just go variable? You'll get the benefit if rates drop, but won't be out of pocket if they stay the same.

[ReCon]

Yep , sorry forgot to say go variable.

[Deej]

RBA: Speech-Still Interesting Times

the general gist seems to indicate that inflation wont rise significantly, and therefore neither will interest rates.

The RBA know that their stance and posturing in the media is more effective then whiting rates themselves. I dont believe em for a second.

[Homie]

NAB droped there fixed rates today as well & when fixed rates start to come down they expect the RBA to drop rates soon?? Also banks have higher amounts of deposits at the moment which is cheap funds to lend? This is why you are seeing the current price war's

If you want to be safe you could split your loan??

[gunn parker]

variable always

[out_in_front]

Always variable - the banks are not stupid and will make sure they always make a minimum amount of money - if not more. The fixed rates have a bit of a safety net built into them, and will always cost more.

I remember back in the day when rates got up to 9% - mate was laughing because he was only paying 7.5% on a fixed rate, then the GFC happenned and we went back down below 5% he was spewing... he was locked in for another two years as well.

[Homie]

Australian Broker are saying that they think fixed rates still have a way to drop??

Australian Broker magazine Issue 8.17 - page 3

[Mckenzie]

Read a few things that say variable usually comes out in front long term.

Banks don't offer fixed terms because they are nice and want to save you money, they do it because it's better for them.

Most people that get fixed say they like fixed because they know how much it will be each month. You shouldn't get a home loan if you can't budget, or can't cope with a few percent rate rise.

[Mckenzie]

Australian Broker are saying that they think fixed rates still have a way to drop??

Australian Broker magazine Issue 8.17 - page 3

if fixed are dropping you can be sure variable will be dropping a lot more.

Note: I am an Internet expert only.

[agrid]

Seems to me the banks only fix rates to their advantage. I'd go variable.

[chew]

ATM, variable. If you have the capability to drop lump sums on the loan at any time there are usually less penalties for doing so with a variable.

You cynical man agrid.

[jules_1972]

Why cant I get a loan from a US Bank!!!

30-Year Fixed

4.250%	4.433%