Best discounts on ANZ Residential Investment Loans with Breakfree package?

Hi folks,

ANZ has offered me a variable rate Residential Investment Loan with their Breakfree package. Their quoting a base rate of 5.64% minus a discount of 1.25%, bringing the rate down to 4.39%. Has anyone managed to get a better discount than 1.25% from ANZ lately? If so, how?

Thanks in advance for your help.

 

I guess it is IO? If you get the usual service like offset etc that is a very good rate. I am stuck at close to 5% with them so looking to refinance when I can early next year

 

I'm with ANZ at the moment. My rate with them on OO is 4.27% and on investment 4.54% both IO

 

ANZ aren't the most competitive at present when it comes to pricing - 1.25 off an IP loan is pretty good.

Cheers

Jamie

 

I'm at 1.15 discount. Loan is just over 90% LVR and one just below 80.

 

Yes. Interest only.

 

@Fortune Favors the Bold & @Eugene82 .....can you share your numbers.....total lending, IO/PI, OO/IP loan, LVT etc.....we are getting 1.11% discount on both OO/IP loans......

 

1.25% discount with ANZ is actually fairly good. In most cases they're only offering around 1.15% and in some cases less.

That said, most other lenders are currently offering around 1.30% and in some cases more. It can vary quite a bit depending on the circumstances.

Probably not worth moving lenders for 0.05%, but for 0.15% it explains why we haven't done much with ANZ lately.

 

I agree, for ANZ that is very good.

 

PPOR IO with offset 1mil+
IP IO 430K
Leveraged at 60% thanks to Sydney markets

 

Sure....

• Purchase price $1.8 million
• Loan $1.44 million
• IO for 10 years
• IP loan
• Base rate 5.64%
• Discount 1.25%
• Discounted rate 4.39%
• Breakfree Residential Investment Loan

 

Even if BankWest is offering 4.09% ?

 

I'd argue that Anz is a better lender than BWA in many respects.

What are your longer term plans with this property?

Cheers

Jamie

 

Ok, so let me get this straight......

• You have $4 million in cash and shares, an income of $110k, plus your interest/divs on the big wad of cash/shares
• You're buying a house, 80% LVR, preserving cash.
• You've been running around like a Blue Razoo in a panic for the last few weeks looking to find a lender who will even lend you money based on your circumstances, and you're down 2 lenders who will (presumably) finally hand over the cash still making you jump through hoops though.
• You're trying to decide between the 2x lenders, ANZ (one of Australia's big 4) and WankPest (Australia's #1 " Bait'n'Switch " lender), squabbling over 30bps in todays interest environment of less than half the all time interest average.
• The extra cost today of 4320 pesos is worrying you, instead of the extra costs of tomorrow based on the advices given in about 4 threads you have started.
• About 10 brokers have advised you on the forum very healthy advice, despite the continued short sightedness.

At what point do you think you will stop hearing and start listening? Will we see you starting threads in the 'Legal Issues' forum "My lender is late because I late squabbling over the finer details of discount I feel entitled to despite never doing business at that lender before and now the Vendor is charging me exorbitant penalty interest - HELP".

pinkboy

 

the 10 year IO period is also worthy of extra points. Bankwest won't want to renew your IO period without a resassessment in 5 years and by that time I expect IP loans to be more difficult to get.

 

Hi Jamie, thanks for your help.

At this point our longer term plan with this property is as follows:
- rent it out for the next year or so while we're overseas
- then move in for a short period - say 3-6 months to establish it as PPOR for ATO purposes and also convert it to an owner/occupier loan
- Move back out and continue to rent it out indefinitely, while being careful to uphold the 6 year rule
- Rent less expensively elsewhere
- Maybe move in 10 years down the road, or longer, when we can better afford to do so on the basis of our income
- Potentially renovate at some point, but not for quite some time

 

Hi Pinkboy,

Thanks for being so clear and direct here. I genuinely appreciate it.

I absolutely agree that I've handled this entire process, from start to finish, very, very poorly, and I feel like an idiot for doing so. If I could turn back time I'd have done things very differently, and saved myself a lot of money, time, and stress.

I'll also just say that my financial / life picture has changed considerably, for the worse, since my first forum post - so that $4000 annual difference between BankWest and ANZ is not inconsequential, though it may appear otherwise.

The reason why I am still asking about ANZ vs BankWest, and rates, is because I've actually also received quite a bit of advice to go ahead with BankWest, and I've also been advised that ANZ should be able to discount their rates further. I wanted to see if anyone else on the forum had success getting better than a 1.25% discount from ANZ, so I could confidently have a final negotiation with ANZ.

Anyway, today I'll make a decision and tomorrow I'll inform the lender, 1 month ahead of settlement, so I should be ago with settlement.

Thanks again for being so clear, direct, and helpful.

 

FFB you are probably over thinking things and creating unnecessary worry.

Don't forget that you could settle and change lenders the next day (but this has consequences for the brokers who have to repay their commission in full if you do this for the first 18 months - would be similar for the bank employee too).

So even if you choose the wrong lender you can just move with a cost of a few hundred dollars (which may be deductible).

Also if you have a large amount of shares are currently a non residence and are becoming a resident then there are some serious tax issues to consider. so make sure you seek advice on this. I have written a tax tip on one aspect of this and will post later today.

 

Indubitably.

Great to understand. Thank you. As you've seen, I'm a bumbling newbie at all of this.

I really don't want to create bad situation for any broker / lender. As I see it you all provide an invaluable service and should be well rewarded for your expertise and hard work.

I've actually just been granted permanent residency, as of a few days ago.

I am indeed getting good (I hope) tax advice, but would love to read your analysis / recommendations, since it's always extremely helpful. Please let me know when you post it.