and here we go again for 2016... "increments" - expect more

Absolutely agreed. Financial planners often gets accused of churning their books. We brokers never have this problem- the lenders are doing the work for us.

 

The only concern here is they offer the 1.5% now, then raise rates by 0.2% in April

 

You can take up the 1.5 discount now and go backwards 0.2% in April, or do nothing now (ie. stay with your lower discount) and go backwards 0.2% in April. Which do you prefer? The latter works only if you are confident of getting >1.5% discount after this month.

 

Exactly. Tiered discounts are tied to the standard variable rates, if there is a SVR increase it's likely to be lock step with the other majors doing similar. Still better to lock in a significant discount while it's available - especially when its a variable rate still giving you the flexibility to move in the future.

 

Am consolidating with CBA with this offer, just saying to anyone with blinkers on, expect rate rises once everything is done.

Friend moved to BOQ with their 4.08 IP offer a couple months ago, they then now raised the rates and the re-finance isn't even completed yet

 

That was a problem a few months ago. A few lenders increased their rates and people fled to other lenders in response. The remaining lenders then increase their rates making the whole exercise fairly futile. There are still a few lenders that haven't increased rates but are still expected to very soon.

When a lender does something you don't like, it's often worthwhile to wait until the rest of the herd responds before making your move.

 

That is a great rate, please update if you get that rate

 

Thanks Balman. I contacted the broker. Got the reply that existing CBA customers need to contact the bank directly to negotiate, and he would advise regarding how to approach the bank. waiting for the call

 

Any broker should, just get your broker to talk to CBA BDM

 

NAB have joined the party this afternoon. +15bpts on Investor P&I lending. I/O investor lending remains unchanged.

They can see what I ( and others) called months ago .... a wall of investors coming who will reach their I/O expiry dates and be unable to qualify to extend their I/O periods or refinance out because of the post APRA servicing calcs, and who will have no choice but to take P&I or sell up....... ie a captive audience , if you will .... and why not hit up your captive audience for a little extra margin???

 

What is the margin on OO/IO? What is the unchanged rate?

 

Yep that's right. I got offers for 4.05% fixed 3 year or 4.08% 10 year IO from these guys, for O/O.

 

Are they only pricing O/O atm? Do you think we will see similar rates for IP loans?

 

Still working on it. CBA are slow at the moment. Should know in next few weeks.

 

Yes, the NAB are pricing investment loans at the moment.