After a new loan or two

Discussion in 'Loans & Mortgage Brokers' started by DoingOK, 13th Dec, 2021.

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  1. DoingOK

    DoingOK Well-Known Member

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    3rd Jul, 2018
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    queensland
    Just had a chat with westpac who said their rate had recently moved - seemed odd.

    I am looking to refinance 2 IPs (IO variable loans with 100% offsets attached). Two loans (total of loans is just under 700k) - recently dumped money from another finished venture into one of the offsets so it has about 365 in it (I might drag this out and but some more etf's or let it sit their for a bit - the advantage of an offset. The combined value of the IPs is roughly 1.7-1.8m.
    Westpac said their rate was 4.1% - I almost fell over, that's crazy high and my current ones are less by a decent bit. Loans are currently with the same lender but are stand alone and can be dealt with separately.

    Anyone done IO variable (non fixed) investment loan recently or have access to interest rates? Would love to know who has a decent rate going.

    I cant imagine they are all 3.5 or higher. Don't care if its major or even non bank lender but want the offset just in case I change my mind and decide to do other things with my money. Happy to hear from any brokers who do this stuff every day.
     
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Westpac seems to have adjusted their fixed rates every fortnight since about early October. I can think of four rate adjustments.

    For IO investment the big 4 banks are looking around 3.5%. Much better rates available with the second tier lenders where you can get the same product for well below 3% in many cases.
     
  3. Morgs

    Morgs Well-Known Member Business Member

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    Your contact at Westpac definitely has it wrong there... low LVR% variable investment IO should be more around that 3% mark.... they should be able to revisit this!
     
  4. Lindsay_W

    Lindsay_W Well-Known Member

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    Plenty of better options out there
    Speak to a Mortgage Broker
     
  5. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Perth WA + Buderim Qld
    WBC are not pricing well atm, I have 2 INV loans there and they're not budging. Gonna throw in a discharge form and see what happens.
     
  6. DoingOK

    DoingOK Well-Known Member

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    Location:
    queensland
    tried talking to my lender (before westpac) and they said they would need 3 to 4 days to get back to me. I said no, talk way faster or I will have moved with a broker.

    They just now called and dropped a whole percent - wow. On the condition I no longer move forward with a broker. Cant see why I would for well under 3 %. They went from useless to very helpful very fast when I said more than happy to move away - have been with them a long time. Now I will definitely drag my money back from my offset and invest elsewhere. Whole loan will be cash positive from about a third of what i get in rent a week. Happy days and saves me a lot of paperwork.
     
    gman65 likes this.
  7. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    03 9877 3000
    It speaks volumes about how they treat customers if they only give you a reasonable deal when you threaten them with competition. It's almost guaranteed that you'll be doing the same thing again in a year or two.

    Accept their offer, see what they actually give you, then it costs you nothing to call a broker and ask if there is a better deal out there.
     
    Lindsay_W likes this.

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