Banks chasing investor refinances....

Interesting reading this article about how banks are chasing property investors again (already? eg we knew it would come but weren't they chasing us away recently.....?)

- Pete Wargent Daily Blog: Banks set to give chase for investors

If any brokers on this list come across super hot 5 year fixed P+I, IP, LVR<70% loan rates for expats (payg in the USA) feel free to get in touch as I have a IP only Portfolio loan currently with St George that I'd like to convert to a regular P+I, IP loan soon as banks start offering great 5 year deals because currently St George are jacking up their portfolio loans because they want to move these off their books due to APRA weighting.

 

Might be worthwhile letting STG know your intentions to refinance and see what they’ll offer of you have stay.

Cheers

Jamie

 

They are currently offering 4.89% p.a 5 years Fixed, P+I, IP refi, <70% LVR.......

Hardly inspiring to stay on (and lose the flexibility of paying it down as we pull funds from the USA equity market to offset risks).

 

Ask them what variable rate discount they’ll provide you with

 

Not that different from other 5 year fixed rates on offer. Consider a shorter fixed period? The same product at 3 years is currently 4.19%.

Also consider dumping the 'Portfolio' component of the package. It's an add-on that doesn't do much for most borrowers these days, but does cost extra.

 

In general, this is true.


Westpac had a pretty great 'perk' with points + rebates going, now its rebates per security (not customer). CBA providing 2k. NAB 1.25k for refis/purchases.

There'll be more and more of this.

In an environment where credit growth is low (investor credit growth near 0% at the moment) banks are seeking to shuffle around whats already there (refinances) to grow their books/maintain. Your starting to see the credit policy needle moving a little by the early movers too.

 

Im considering it......my only concern is I don't think we'll be on our way "back down" at the other end of 3 years and will come out of fixed in a very average market (basically I think the next few years to 2020 are going to be flat to increasing.....it wont be a short up and down if that makes sense).

 

@Dean Collins I've had the same thoughts myself. You fix today, you enjoy a modest saving for the next few years, then just before you come off fixed, rates start to go up and you're stuck with a huge increase.

Problem here (and with any fixed rate) is you're trying to manage the combination of unknown future economic conditions vs getting screwed by lousy current offerings for investors and interest only.

To add another dimension, perhaps we need to consider how long we expect the pricing discrepancies to really last? Will the rate differences stabilise in a year or two? If that's the case, perhaps the solution is to fix for 1 or 2 years to ride out the uncertainty, instead of a longer term fixed period?

I don't think anyone really knows what the answers to this are. The best economists can't make a rate prediction worth a damn past 3-6 months.


That brings us back to the original question. You're looking for a cheaper 5 year rate, but what StG are offering is about where most of the market is at. If you want longer term certainty, you're going to pay extra for it.

The other thing that hasn't been mentioned, but implied, is that as an ex-pat you may not have the luxury of switching lenders at this point in time. Lenders may be chasing refinances at the moment, but there's not indication that they're interested in ex-pats or non-resident lending at all.