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10% deposit. $280,000 investment loan - what would the cheapest % rate I could get?

Discussion in 'Property Finance' started by Beachy, 21st Jun, 2016.

  1. Beachy

    Beachy Active Member

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    QLD
    4.6% variable? Only looking at variable rate.
     
  2. Simon Moore

    Simon Moore Mortgage Broker - Melbourne Business Member

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    Melbourne
    On $280,000 I would be looking for something below 4.3%. Don't focus 100% on the rate as an investor, you also need to think about the policies and features you need to keep growing your portfolio.
     
    House likes this.
  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Subject to lending criteria, you can get 4.24% interest only as a stand alone variable rate. Not really a suitable product for many people and not something I'd suggest as part of a larger investment strategy.There's a few other deals at around the same price point.

    Keep in mind a 0.1% rate difference equates to $280 per year for a $280k loan. Often fees would be more than this. $280/yr can also be well worth the cost for a more appropirate solution.

    A slightly cheaper rate isn't a better solution if it means you can't meet your longer term goals.
     
    Last edited: 21st Jun, 2016
  4. House

    House Well-Known Member Premium Member

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    A very important point that I've heard a lot of dollar conscious beginner investors don't take into consideration.
     
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  5. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Adelaide, SA
    What's more important to you - saving 30 cents a day, or the capability to buy another investment property? Sometimes focusing on the cheapest rate can be an expensive mistake.

    When choosing lender and product, ensure you're focusing on the greater picture if you're intending to build a large portfolio. Those who want to build an out of the norm portfolio and results need to think of lending out of the norm.

    Sometimes you can certainly have your cake and eat it with a competitive rate, product and policy set - but for the most part it's a case of give and take.
     
    York likes this.
  6. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    A sample of more important questions:
    1. Who will lend me the money?
    2. Who of the above is best to fund this purchase, given more will come?
    3. Who of those has the best policy to suit my plans?
    I could go on.

    The rate spread on my own personal lending is 0.81%.

    Big picture :)
     
  7. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Definitely don't just focus on rate when borrowing at 90%

    Use a lender that's conducive to your longer term goals.

    If this the only/last property you'll ever purchase a property than sure - go for low.

    Cheers

    Jamie