in brief
home loan rates
where are they headed?
W e asked our panel of Australia’s
leading economists and
mortgage industry experts to give their
Institution Spokesperson November 08 January 09
ING Direct Glenn Baker 9.56% 9.56%
recommendations on where they think CommSec Craig James 9.71% 9.71%
the average standard variable rate will be
Peach Home Loans Nicholas Gruen 9.21% 8.96%
in the November and January periods of
2008/09. After March’s 0.25% rate rise ABN AMRO Martin Lynch 9.51% 9.51%
by the Reserve Bank of Australia, we AMP Capital Investors Shane Oliver 9.46% 9.46%
calculated an average standard variable Seniors Equity Direct Craig Swan 9.46% 9.46%
rate of 9.46% (including individual
Pepper Homeloans Ed Thian 9.75% 9.75%
lender rises). These predictions by no
Mortgage House Ken Sayer 9.72% 9.725
means reflect where the rates will be for
the banks or other lending institutions Smartline Martin Castilla 9.71% 9.46%
surveyed, and are instead intended as Housing Industry Association Harley Dale 9.56% 9.56%
a guide. Forecasts may have changed BT Financial Group Chris Caton 9.66% 9.66%
since the time of the survey, as at 3 July
2008. Panellists also advise on whether variable rates to rise from current levels Source: Your Mortgage
to fix a portion of the interest rate on a variable rates to fall from current levels
home loan or to stay variable. variable rates to remain steady
“It’s a decision that’s based on each
borrower’s unique circumstances and
risk profile. Those borrowers who place a
higher value on ‘insuring against increasing
rates’, and who can afford repayments on
the current fixed rate offering – should fix
all or as much of their debt as makes them
feel secure. Those who value more highly
the prospect of possibly benefiting from
a declining rate environment – and whose
budget can tolerate the pressure of a series
of potential rate rises – will find merit
having all or most of their debt on a variable
rate. Ultimately, only the client can make
this decision”
Craig Swan, director, Seniors Equity Direct
Craig Swan
10 Your Mortgage No.87 September 2008
in brief
Your home loan repayment tables
Interest and monthly repayments (P&I)
ANZ CBA NAB Westpac St.George
Loan amount 9.62% 9.58% 9.61% 9.61% 9.67%
$100,000 $882.05 $879.26 $881.36 $881.36 $885.54
$200,000 $1,764.11 $1,758.53 $1,762.71 $1,762.71 $1,771.09
$250,000 $2,205.13 $2,198.16 $2,203.39 $2,203.39 $2,213.86
$300,000 $2,646.16 $2,637.79 $2,644.07 $2,644.07 $2,656.63
$350,000 $3,087.18 $3,077.42 $3,084.74 $3,084.74 $3,099.40
$400,000 $3,528.21 $3,517.06 $3,525.42 $3,525.42 $3,542.17
$450,000 $3,969.24 $3,956.69 $3,966.10 $3,966.10 $3,984.94
$500,000 $4,410.26 $4,396.32 $4,406.78 $4,406.78 $4,427.71
$550,000 $4,851.29 $4,835.95 $4,847.45 $4,847.45 $4,870.49
$600,000 $5,292.32 $5,275.58 $5,288.13 $5,288.13 $5,313.26
$650,000 $5,733.34 $5,715.22 $5,728.81 $5,728.81 $5,756.03
$700,000 $6,174.37 $6,154.85 $6,169.49 $6,169.49 $6,198.80
$750,000 $6,615.40 $6,594.48 $6,610.16 $6,610.16 $6,641.57
$800,000 $7,056.42 $7,034.11 $7,050.84 $7,050.84 $7,084.34
$850,000 $7,497.45 $7,473.75 $7,491.52 $7,491.52 $7,527.11
$900,000 $7,938.47 $7,913.38 $7,932.20 $7,932.20 $7,969.89
$950,000 $8,379.50 $8,353.01 $8,372.88 $8,372.88 $8,412.66
$1,000,000 $8,820.53 $8,792.64 $8,813.55 $8,813.55 $8,855.43
Interest-only (IO)
ANZ CBA NAB Westpac St.George
Loan amount 9.62% 9.58% 9.61% 9.61% 9.67%
$100,000 $801.67 $798.33 $800.83 $800.83 $805.83
$200,000 $1,603.33 $1,596.67 $1,601.67 $1,601.67 $1,611.67
$250,000 $2,004.17 $1,995.83 $2,002.08 $2,002.08 $2,014.58
$300,000 $2,405.00 $2,395.00 $2,402.50 $2,402.50 $2,417.50
$350,000 $2,805.83 $2,794.17 $2,802.92 $2,802.92 $2,820.42
$400,000 $3,206.67 $3,193.33 $3,203.33 $3,203.33 $3,223.33
$450,000 $3,607.50 $3,592.50 $3,603.75 $3,603.75 $3,626.25
$500,000 $4,008.33 $3,991.67 $4,004.17 $4,004.17 $4,029.17
$550,000 $4,409.17 $4,390.83 $4,404.58 $4,404.58 $4,432.08
$600,000 $4,810.00 $4,790.00 $4,805.00 $4,805.00 $4,835.00
$650,000 $5,210.83 $5,189.17 $5,205.42 $5,205.42 $5,237.92
$700,000 $5,611.67 $5,588.33 $5,605.83 $5,605.83 $5,640.83
$750,000 $6,012.50 $5,987.50 $6,006.25 $6,006.25 $6,043.75
$800,000 $6,413.33 $6,386.67 $6,406.67 $6,406.67 $6,446.67
$850,000 $6,814.17 $6,785.83 $6,807.08 $6,807.08 $6,849.58
$900,000 $7,215.00 $7,185.00 $7,207.50 $7,207.50 $7,252.50
$950,000 $7,615.83 $7,584.17 $7,607.92 $7,607.92 $7,655.42
$1,000,000 $8,016.67 $7,983.33 $8,008.33 $8,008.33 $8,058.33
Assuming:
Loan term (in years): 25; loan term (in months): 300
www.yourmortgage.com.au 11
in brief
to fix
or not to fix?
What the number crunchers think
“If you’re already
experiencing mortgage
stress, consider fixing
part or all of your loan/s
Martin for one or two years
Castilla Harley Dale
maximum to protect
your repayments. Rates “The tightening monetary policy cycle is
should drop later in close to an end and the time for fixing
2009, so having rates is probably behind us”
variable then will Harley Dale, chief economist, Housing
industry Association
Shane reduce repayments”
Oliver
Martin Castilla, personal
mortgage adviser, Smartline “No, it’s not a good idea for customers
to fix a portion of their rate due to the
“With fixed rates above fact that interest rates are more likely to
basic variable rates, it’s drop in the foreseeable future”
too late to fix, except for Ken Sayer, managing director and CEo,
Chris Mortgage House
Caton those who can’t risk any
further increases”
Shane oliver, head of investment
“The time to fix has probably passed,
strategy and chief economist, AMP except for the risk averse and heavily
Capital investors
credit exposed”
Nicholas Gruen, CEo, Peach Home Loans
“It would certainly
make sense to think
“Fixing would provide protection against
about fixing part of
further rate rises but rates may have
one’s mortgage”
Chris Caton, chief economist, Bt
peaked in the current cycle”
financial Group Glenn Baker, head of treasury, iNG Direct
12 Your Mortgage No.87 September 2008