Australian sub prime mortgage market.

its just an abberation

 

No, you're exactly right - scary chart on the ABC news the other night showing LVR for First Home Buyers - virtually all above the 90% line... I can't believe the banks are still doing this.

 

Huh!!

 

That's ok until the insurance company goes down, i.e. AIG.

 

Actually that's not the case RB based on what was is the paper today.

Quote "The number of borrowers taking out a fixed loan has dropped from one in three just over a year ago to one in 100 last month."............ "Fixed-rate loan applications peaked at 33% in February last year but were down to 1.44% in March"......... You'd be crazy not to fix now.

I'm paying 5.1% on one loan and around 4.8% on another. Will be fixing the later shortly when it comes up.

 

I am happy for the economic crap to keep hitting the fan for a while longer and interest rates to fall a bit further. I reckon it's a tad early to be going for fixed interest yet; but I am watching closely and biding my time.

 

I buy 30 and 90 day bills Bobby so a bit different to normal lending. The bills are very low at the moment.

 

I'm happy paying 4.8% ATM. I think that's competitive. Perhaps we should have a chat one day if you have cheaper options.

 

4.3% i think for 90 day bills

 

It changes on a daily basis. My last rollover last month was 3.83%. We have a good record with the bank and pay just 1% margin hence total rate 4.83%. Still cheap money ATM but by the sounds of it Bobby has a better alternative which I am interested in exploring off line.

Just checked the paper, 3.19% yesterday.

 

4.3% includes my margin

 

So you have a good record as well.

Would have been 4.19% if it rolled yesterady.

 

I'm happy to send you a bill if you like

 

Why?

He buys 30 day bills and doesn't pay them till 90.

Not the sort of business you'd want, i'd have thought.

 

lol. Idiots.

Now leave me alone.

 

Yeah you're right. He's too shifty.

 

+11ty billion. They aren't reporters anymore, more like cut'n'pasters.

 

true but the longer the roll the cheaper the rate, i see 30 days as too short, and 180 days as too long, so i pick the middle. there's no perfect time.

anything under 10% is cheap money, so the only diff now is i am paying more principal back since i am paying less interest. makes me even stronger every quarter.

 

Agree, 12 handling fees per year at $100 a pop. My 30 day one ends in a few months. Yippee.