Join Australia's most dynamic and respected property investment community

Best discounts on ANZ Residential Investment Loans with Breakfree package?

Discussion in 'Property Finance' started by Fortune Favors the Bold, 14th May, 2016.

  1. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

    Joined:
    22nd Nov, 2015
    Posts:
    154
    Location:
    Melbourne
    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.
     
  2. Yann

    Yann Active Member

    Joined:
    10th Jul, 2015
    Posts:
    41
    Location:
    Brisbane
    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
     
  3. Eugene82

    Eugene82 Active Member

    Joined:
    2nd Oct, 2015
    Posts:
    36
    Location:
    NSW
    I'm with ANZ at the moment. My rate with them on OO is 4.27% and on investment 4.54% both IO
     
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,139
    Location:
    Canberra and Sydney
    ANZ aren't the most competitive at present when it comes to pricing - 1.25 off an IP loan is pretty good.

    Cheers

    Jamie
     
  5. Hodor

    Hodor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    736
    Location:
    Homeless
    I'm at 1.15 discount. Loan is just over 90% LVR and one just below 80.
     
  6. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

    Joined:
    22nd Nov, 2015
    Posts:
    154
    Location:
    Melbourne
    Yes. Interest only.
     
  7. S0805

    S0805 Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    333
    Location:
    VIC
    @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......
     
  8. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,090
    Location:
    Melbourne, Nationwide
    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.
     
  9. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,756
    Location:
    Perth WA
  10. Eugene82

    Eugene82 Active Member

    Joined:
    2nd Oct, 2015
    Posts:
    36
    Location:
    NSW
    PPOR IO with offset 1mil+
    IP IO 430K
    Leveraged at 60% thanks to Sydney markets
     
  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,158
    Location:
    Gold Coast
    Given your circumstances

    take it and run

    fast


    ta
    rolf
     
    tobe and Fortune Favors the Bold like this.
  12. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

    Joined:
    22nd Nov, 2015
    Posts:
    154
    Location:
    Melbourne
    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
     
    S0805 likes this.
  13. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

    Joined:
    22nd Nov, 2015
    Posts:
    154
    Location:
    Melbourne
    Even if BankWest is offering 4.09% ?
     
  14. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,139
    Location:
    Canberra and Sydney
    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
     
  15. pinkboy

    pinkboy Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    909
    Location:
    Mackay, Qld
    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
     
  16. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,940
    Location:
    Sydney
    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.
     
  17. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

    Joined:
    22nd Nov, 2015
    Posts:
    154
    Location:
    Melbourne
    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
     
  18. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

    Joined:
    22nd Nov, 2015
    Posts:
    154
    Location:
    Melbourne
    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.
     
    pinkboy and tobe like this.
  19. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,940
    Location:
    Sydney
    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.
     
    MTR and Fortune Favors the Bold like this.
  20. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

    Joined:
    22nd Nov, 2015
    Posts:
    154
    Location:
    Melbourne
    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.
     
    Last edited: 15th May, 2016