Margin Loans Comsec Raises Rates

Comsec has raised its variable rate again! they charge 9.65% now up from 9.5% last week.

And I had the opportunity to lock in rates for 5 years at 9.25 when the RBA raised rates..

 

Thanks for letting me know.

I pay so little attention that I wouldn't have noticed for ages. Thanks again.

BR

 

Hi

Thanks for the notification - 9.5% - that does it for me.

I had thought about getting $100k into the Lincoln retail.

But at 9.5% borrowing costs, plus management fees to Lincoln, and with CGT on the gains, well I don't think the marginal return is worth taking the effort/ risk/.

Pity about that.

Tony

 

Funny how you don't seem to get any notification from them! Even though they have my email address for contract notes etc, they don't inform their clients of these raises.

I thought that the law requires them to send out a notification? I never got one for the previous raise either.

stinks really.

 

I received no notification of increases the last 2 times either.

In my opinion panicing and locking rates is not something I'm going to do.

Here is a comment from Noel Whittaker today on interest rates:

"The future of rates is always hard to forecast, but right now the money market is telling us that the interest rate cycle has nearly reached its peak. Five year bonds are now yielding a little over 7% and 10 year bonds around 6.9%. This is a clear indication that there should be no more than a quarter of a percent rate rise to come. Also, experience tells us that humans normally fail by chasing the last winner. Fixed rate loans have become the most popular form of finance about – I believe that those who take out fixed rate loans now will be sorry later."

 

Interesting last post. When we got our house loan in 2006, INGbank would only consider giving me a fixed interest loan because they were worried about serviceability (the loan is only in my name so my partner's serviceability didnt come into play). The interest rate we got is 6.75 fixed for 5 years (from feb 2006). If I understand Noel Whittaker's comment correctly then the next house loan we get (early 2009) we should have as variable interest.