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Thread: Home loan rates

  1. #1

    Default Home loan rates

    Any of you guys have Home Loans?? How about the CBA'S move?? Sign of what to come as our economy gets better - and especially as the other nations start to pick up. Make up the lost ground and reap more billions back
    I just locked mine in for 3 yrs 1 week ago, but I'm sure they will get me in 3 yrs because things may be red hot by then!

  2. #2
    Senior Member PaulG's Avatar
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    Default Re: Home loan rates

    How much did they put them up?
    I'm with Westpac - a fixed and a variable component to my home loan. I hate the banks. They are a law unto themselves. I actually liked Joe Hockey's idea to prevent the banks doing as they want with home-loan rates.

  3. #3
    Member Tender Lovin Lawn&Garden's Avatar
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    Default Re: Home loan rates

    gotta message whn i signed in there today saying they are putting it up due to increased costs. Makes me laugh there a company that makes billions and pays there directors millions. I hate banks but what choice do we have we cant survive with out them.
    Tender Lovin Lawn and Garden Care
    We do everything for your lawn and garden with tender loving care
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  4. #4
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    Default Re: Home loan rates

    Quote Originally Posted by Tender Lovin Lawn&Garden View Post
    gotta message whn i signed in there today saying they are putting it up due to increased costs. Makes me laugh there a company that makes billions and pays there directors millions. I hate banks but what choice do we have we cant survive with out them.
    now be fare there costs have gone up heaps i mean just for a start they now pay the boss twice as much as last year
    Anything Ian says may or may not be garbage, it may also be his own opinion or it may not be his opinion at all, it may just be something he felt like stating anyone following his advice does so at their own risk and may be doing something Ian would actually advise against.
    And if you don't like what Ian has to say use the ignore function if you don't know how ask i will gladly tell you

  5. #5
    Member Tender Lovin Lawn&Garden's Avatar
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    Default Re: Home loan rates

    Quote Originally Posted by ian View Post
    now be fare there costs have gone up heaps i mean just for a start they now pay the boss twice as much as last year
    And over a hundred times what anyone should be paid
    Tender Lovin Lawn and Garden Care
    We do everything for your lawn and garden with tender loving care
    find us on facebook under Tender Lovin Lawn and Garden Care

  6. #6
    Senior Member PaulG's Avatar
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    Default Re: Home loan rates

    $6 billion was the most recent profit announcement for CBA I heard on the news tonight.

  7. #7
    Senior Member holdenhead's Avatar
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    Default Re: Home loan rates

    Cant complain when rates have been pretty good for a while now. The big banks are greedy though but that's why we are with a smaller bank. Been with them 8 years now and as happy as we could be. We are not on the best rate but not far from it and they dont seem to raise rates above the reserves recomendations much.

    Shop around for a better deal if your not happy with the one you have.

  8. #8
    Senior Member RSM-Gazza's Avatar
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    Default Re: Home loan rates

    Interest rates are fairly low as Holdenhead said.

    When I had built/purchased my first home in 1991, rates were at 13% and you had to find a 20% deposit. So the main family car went to assist with that and we really struggled for years back then on one income starting a family.
    Compared to today's rates rising out of record low rates of recent, there's not much to complain about. Except when banks go above the RBank increase announcements.

    I've been with nab for both of my newly built homes since 1991.
    Been so happy with there regional personalised country service. Re the current house we even sent flowers to the snr lending officer lady that just went out of her way to help to save us bucks in the transfer from one house to another.
    My current rate is 6.54% and I remember a time years & years back when they were at 18%.

    Just borrow to what you know is safe and repay as much as you physically can when possible on every single occassion.
    IMO too many young ones want a 23sq+ first go with all the trimmings.
    My first home had no ensuite, no lock up garage, no dishwasher and a vulcan wall upright furnace for heating.
    But today I have only the cost a SP mower left on my loan, due to thumping it hard in the earning period of my past career.
    Will not pay it off totally whilst settling into this business as you can always do a redraw in a worst case scenario.

    My eldest daughter who is 19 and her boyfriend of 3yrs are busting there backsides to save for a house. They actually could lay an entry deposit now for a budget entry 13-14sq job if life at home wasn't so good for both of them. But whilst both are happy at each other's parent, we tell them to save, bank and save whilst you can.

    Well thats my ramblings on here.
    Cheers Garry

  9. #9
    Member Andy B's Avatar
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    Default Re: Home loan rates

    Banks, insurance companies, these days I seem to have run ins with them all. I couldn't cop stupidity when I worked for them why should I cop it now? I'm a pretty layed back character but some of the procedures people invent to justify their jobs irk me!

  10. #10
    Senior Member fairdinkum's Avatar
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    Default Re: Home loan rates

    My parents bought their home in 1972 for $17000. Interest rate was then 17% and it took them 18 years to pay it off. My dad's wage was around $300 per week which was a bit below the average i think. The same house on the same land now is valued at around $500000. Now if things were fair and wages rose in line with the cost of living, the below average wage should be 29 times $300....i.e $8700 per week. Maybe not the best example. But my point is that the cost of living is rising much more rapidly than the earning capacity of struggling families and the current and former governments haven done very little, if anything, to help matters.

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  11. #11
    Senior Member glassngrass's Avatar
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    Default Re: Home loan rates - to fix, or not to fix

    Quote Originally Posted by Lawnmowing Wheelers Hill View Post
    I just locked mine in for 3 yrs 1 week ago, but I'm sure they will get me in 3 yrs because things may be red hot by then!
    A fixed interest rate is based on the lender's assumptions about the average discount rate over the fixed rate period. For example, when the discount rate is historically low, fixed rates are normally higher than variable rates because interest rates are more likely to rise during the fixed rate period. Conversely, when interest rates are historically high, lenders normally offer a discount to borrowers to fix their interest rate over time, as rates are more likely to fall during the fixed rate period.

    Certainty of repayments is nice when you expect rates to increase. You might be moved to fix your interest to protect yourself from changing rates, however the reason banks offer fixed rates is to protect the BANK from changes in market rates.

    Watch out for fees to exit fixed and return to variable rates - these can be expensive.

    70% of those who fix their rates are actually worse off for doing so.

    They understand the market a little better than us mere mortals and will stiff you where ever possible.
    David
    Mr Sparkle Car Spa

  12. #12
    Senior Member glassngrass's Avatar
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    Default Re: Home loan rates

    Quote Originally Posted by fairdinkum View Post
    But my point is that the cost of living is rising much more rapidly than the earning capacity of struggling families and the current and former governments haven done very little, if anything, to help matters.
    On the contrary....this is by design and they have been instrumental in bringing this about

    The average full-time wage in 2010 was $65,000, and yet most earn under $40-45K.

    The 'average' wage is no longer 'average', because the number of those below average is much greater than the number of those above average
    David
    Mr Sparkle Car Spa

  13. #13
    Member Of Forum Wattle GC's Avatar
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    Default Re: Home loan rates

    My take on the "Hockynomics" is we need more competition out there and the government does need to prop up independants the like of Aussie Home loans Wizard etc.I know the sub prime collapsed during the financial crisis but it needs incentive for the punters to bring it back and compete against banks that do not have the best interest in our country or its people only profitts.

  14. #14
    Senior Member PaulG's Avatar
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    Default Re: Home loan rates

    Quote Originally Posted by glassngrass View Post
    On the contrary....this is by design and they have been instrumental in bringing this about

    The average full-time wage in 2010 was $65,000, and yet most earn under $40-45K.

    The 'average' wage is no longer 'average', because the number of those below average is much greater than the number of those above average
    That's a bell-curve I'd like to see. Largely skewed to the left !

    But it's the truth. We are going backwards here. The cost of living is rising just far too quickly.

  15. #15
    Senior Member Mrs HMS's Avatar
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    Default Re: Home loan rates

    Quote Originally Posted by RSM-Gazza View Post
    Interest rates are fairly low as Holdenhead said.

    When I had built/purchased my first home in 1991, rates were at 13% and you had to find a 20% deposit.

    My first home had no ensuite, no lock up garage, no dishwasher and a vulcan wall upright furnace for heating.
    We purchased our first home in 1992 at interest rates around 11.5%, it too had no ensuite, no garade, no dishwasher and a vulcan wall furnace. We paid less that $90K for it - had to have 20% deposit because the mortgage insurers knocked us back otherwise.

    Sold it 12 years later for $236K after adding a family room, new kitchen and renovating the bathroom (borrowed an extra $25K). That same house sold earlier this year for $375K (and nothing extra had been done to it).

    Wages have not gone up that much and I remember being completely terrified at the size of our first mortgage.

    We were able to pay off our first mortgage before I stopped work to start a family. I would hate to be young and buying my first home now - don't see how you could ever get to a point of being able to go down to one income and afford to live, even with interest rates much lower than when we started out.
    ~ Joanne ~

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