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**GEAntonio** · 11-04-2009, 10:02 AM

It is certainly not my fault, I never voted for Labour.
In Australia fixed rates are offered, but always at a premium and for a maximum term of 5 years. The higher rates on the fixed loans means it is very rare for the borrower to benefit from the fixed rates over the term of the loan and there are significant penalties for paying out a fixed loan early too, so going that way is generally a poor decision.

That's wrong. We fixed our home loan almost three years ago when rates were around 8%. The rate offered (7.5%) was lower than the variable rate. The fixed rate is worked out as the average of what they estimate rates will do. They must've figured rates would go down but got it wrong as rates went up higher at that stage. We enjoyed two and a half years of rates lower than the bank's variable rate till rate decreases brought it under that level start of this year. Now our fixed rates are about to end but we came out massively in front. You can also get any length of time for the fixed rates, just ask the bank.

11-04-2009, 10:02 AM	#23
GEAntonio Join Date Oct 2005 Posts 408 Senior Member	It is certainly not my fault, I never voted for Labour. In Australia fixed rates are offered, but always at a premium and for a maximum term of 5 years. The higher rates on the fixed loans means it is very rare for the borrower to benefit from the fixed rates over the term of the loan and there are significant penalties for paying out a fixed loan early too, so going that way is generally a poor decision. That's wrong. We fixed our home loan almost three years ago when rates were around 8%. The rate offered (7.5%) was lower than the variable rate. The fixed rate is worked out as the average of what they estimate rates will do. They must've figured rates would go down but got it wrong as rates went up higher at that stage. We enjoyed two and a half years of rates lower than the bank's variable rate till rate decreases brought it under that level start of this year. Now our fixed rates are about to end but we came out massively in front. You can also get any length of time for the fixed rates, just ask the bank.
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