Best interest only investment loan rates

Hi just wondering what the best interest only investment loan rates are out there? I am looking to borrow $400k at 80% LVR. I would look for basic features such as offset account and ability to pay lump sums and get cash out. I saw 4.19% but would like to know if there is anything better? Any help would be appreciated

Cheers

Joe

 

The problem with rate chasing is that most lenders are bait clients with great rates or cash backs or meat hampers and then increasing rates progressively post settlement. Im just seeing this more and more.

4.19% is a great rate if we are talking variable but normal for fixed. One lender is doing 4.15% IO but thats not much off 4.19% so you need to look at other points such as cash out policy, servicing, etc.

 

My recent encounter assisting someone else showed that from the big Big4s on "package" IP IO with <80 LVR at >$750K (multiple loans) the offers ranged from 4.64% to 4.94% but that required refinancing or the threat to do so.

I have 4.99% with CBA and a recent enquiry to improve the rate was met with a negative so currently considering my options but I have 3 yrs left on my IO period so may just wait a bit longer as my friend experienced a few issues that's to APRA and maybe the focus from the Royal Commission.

 

Hi shahin

Who was the lender for the 4.15%? I take your point that some lenders up the rate once they have you locked in to a loan but how do you determine which lenders will do this? I guess there is always the option of refinancing?

 

Lender is Resimac.

All lenders essentially do it to varying degrees and you are spitting in the wind right now with rates going up on the daily.

Refinancing is an option and maybe it isn't depending on servicing but its still going to cost a bit to move around which will eat into any saving you are getting.

Try and first negotiate the hell out of your existing rate before moving.

 

4.19% sounds exceptional for IO. I fixed a bunch of mine 2-3 years ago at 4.99% . Win some lose some.

 

I called my current lender and mentioned that I could get a better rate elsewhere but they didn't budge. Any tips on negotiating with the banks?

 

Have proof of the offer elsewhere - request a discharge form, potentially lodge that form.