Majority of my loans are fixed until Nov/December 2009 so I dont have any choice but to wait.
Mind you I fixed at 7% so have saved myself a bundle over the past 24 months.
I think the RBA will drop rates further this year and the banks will pass on "some" further cuts, not all but some.
However when talking about fixed rates, it really is another kettle of fish altogether.
My guess is we may still get cheaper "fixed" rates in the later half of this year as competition heats up between the big 4 and others to secure new client's credit.
Furthermore, non banks lenders may come back to the picture as the credit crunch slows and starts to show improvement further increasing competition.
My take really is.... do u need to fix and why?
you may get say 6% for a 3 year fixed.
but if current variable rates are say 5%.......they need to lift not only 1% but over 1% before your'e in a worse position.
then they need to maove the same amount again to cover the savings u made in the time u were variable.
Its all relative.
My thoughts would be to stay variable at this point.......fixing can be done anytime with a phone call.....but once fixed its harder to get out thaqtn in.
