Latest / The SME Stream / Sue Tierney: Mortgage Broker on Westpac raising its 2-5 year fixed rates by 30 basis points

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Sue Tierney: Mortgage Broker on Westpac raising its 2-5 year fixed rates by 30 basis points · The SME Stream

• 0:00
  Speaker 1: First of the big banks has broken the trend, and
• 0:03
  Speaker 1: well the downward trend anyway, now lifted its mortgage rates,
• 0:06
  Speaker 1: and by quite a decent amount. Westpac has announced a
• 0:08
  Speaker 1: thirty basis point increase to its fixed year fixed rates
• 0:12
  Speaker 1: of two to five years. Sue Tierney is a mortgage
• 0:15
  Speaker 1: broker with Sue turning mortgages and is with us Morning.
• 0:17
  Speaker 2: Sue, Good morning, Heather.
• 0:19
  Speaker 1: Do you expect the others to do the same?
• 0:22
  Speaker 3: I absolutely Westpac has been leading the way with their
• 0:26
  Speaker 3: five year rate anyway, so I don't imagine that they
• 0:30
  Speaker 3: will change their five year rates because the other banks
• 0:32
  Speaker 3: have been higher, but I certainly expect it for the two,
• 0:35
  Speaker 3: three and four year rates.
• 0:37
  Speaker 1: Does that mean, Sue, then, for anybody you know, at
• 0:40
  Speaker 1: least with Westpac now and anybody else who hasn't yet
• 0:42
  Speaker 1: managed to come off their rate and fix at the
• 0:43
  Speaker 1: low rates, they've kind of missed that party.
• 0:47
  Speaker 3: Not necessarily because it is possible to break the rate,
• 0:50
  Speaker 3: of course, and as we saw earlier in the year,
• 0:54
  Speaker 3: Westpac was offering a five four point nine to nine
• 0:56
  Speaker 3: rates for five years for a short while. The other
• 0:59
  Speaker 3: banks didn't come to the party, so they dropped it.
• 1:02
  Speaker 3: But then again in October they.
• 1:03
  Speaker 2: Brought it back. So in the more good rate world,
• 1:06
  Speaker 2: anything can happen.
• 1:08
  Speaker 1: Now, is there a chance? I mean, it's been pointed
• 1:10
  Speaker 1: out by Andrew Calla who was on earlier, that the
• 1:12
  Speaker 1: Reserve Bank is itself not going to talk about the
• 1:14
  Speaker 1: stuff until February, so we might be stuck with this
• 1:16
  Speaker 1: happening with the wholesale rates for another couple of months.
• 1:19
  Speaker 1: Is it possible that the Reserve Bank governor the new one,
• 1:22
  Speaker 1: if she talks this morning, may be able to undo
• 1:24
  Speaker 1: what's going on in the wholesale market.
• 1:28
  Speaker 3: I believe that's certainly possible because a lot of it
• 1:31
  Speaker 3: is generated by perception and what is expected, so that
• 1:36
  Speaker 3: is quite possible. I think the key to remember here, though,
• 1:40
  Speaker 3: is that people do have the opportunity to negotiate rates.
• 1:44
  Speaker 3: So the bank has an advertised rate, but that doesn't
• 1:47
  Speaker 3: necessarily mean that you need to accept it. And from
• 1:51
  Speaker 3: my experience, this is really only going to be huging
• 1:55
  Speaker 3: the people over eighty percent where it's less negotiable. So
• 1:59
  Speaker 3: anybody was funding that is less than eighty percent of
• 2:02
  Speaker 3: the house value, I wouldn't be panicking so much because
• 2:05
  Speaker 3: you've certainly got opportunities to negotiate.
• 2:08
  Speaker 1: How much are they prepared to move.
• 2:11
  Speaker 3: As in the negotiated rate sometimes aero point three percent
• 2:16
  Speaker 3: of what they're offering right now online or advertised rates.
• 2:20
  Speaker 3: So if you're seeing five point two nine, it's quite
• 2:23
  Speaker 3: feasible to still get a four.
• 2:25
  Speaker 2: Point nine to nine rates. If so, if you've got
• 2:28
  Speaker 2: less and eighty things, what.
• 2:30
  Speaker 1: I'm taking from you is suit don't panic.
• 2:33
  Speaker 3: Absolutely, it's disappointing just at Christmas time.
• 2:36
  Speaker 2: It really is that. Don't panic.
• 2:38
  Speaker 3: And certainly if your loane doesn't mature till later next.
• 2:42
  Speaker 2: Year, I would be doing nothing. I wouldn't be worrying.
• 2:45
  Speaker 1: Hey, that's FANTASTICOD bye, thank you very much. Sue suit
• 2:47
  Speaker 1: to you, any of mortgage broker with suit to you
• 2:49
  Speaker 1: any mortgages. For more from the Mic Asking Breakfast, listen
• 2:53
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• 2:56
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