Best interest rates in the market atm!

"What's the best rate?" - It's really simple to ask this question but it's impossible to answer without asking some questions first...

My questions in response would be...

"Investment or owner occupied?"
"Principal & Interest or Interest Only?"
"How much are you borrowing?"
"Fixed or variable, or a combination and in what amounts?"
"What LVR is it?"
"Where is the security property located?"
"What type of property is it?"
"Clean credit or credit impaired?"
"Can I have a complete disclosure of your entire financial position as per my fact find? This will enable me to verify which loans you'll qualify for and allow me to leverage any prior relationships with lenders for negotiation purposes."
"What are your short, medium and long term plans? This will help me try to optimise the best structure, lender and loan to help meet those goals in the most cost effective manner I can."
"Can you tell me what the lenders will be offering tomorrow? The only constant for the past few years is that lenders have changed rates, products and policies almost weekly so it's impossible to say that what you're offered today will continue to be cheap tomorrow."

If you answer all that, I can take some time and give you a decent proposal.


But if you just want a product with a low rate, take a look at this:

* 1.05% standard variable rate.
* No account keeping fees or transaction fees.
* Can be setup online in 7 minutes.
* Only qualifying criteria is identification documents, you must be an Australian resident over the age of 18.
* No minimum or maximum amount.

Enjoy!!!
NAB iSaver

 

Yes owner occupied.

 

I just called one of my banks to get a quote on rates


For ips this is what they came back with

Interest Only-

Variable: 4.29%

FIXED:

1 YEAR

2 YEARS

3 YEARS

4 YEARS

5 YEARS

4.24%

4.24%

4.39%

4.59%

4.59%



Principal and Interest-

Variable: 4.89%

FIXED:

1 YEAR

2 YEARS

3 YEARS

4 YEARS

5 YEARS

4.79%

4.79%

4.84%

4.99%

5.09%

Now the last time I contacted the bank about 6 months ago. I remember io rates being almost 1 % higher vs pi

Now io is cheaper. Admittedly I was panicking and was going to do pi for All of mine due to higher repayments

Had the market changed in the past few months?

As I was considering changing to pi as repayments were about the same as io at 1% higher

Seems to have done a 180degrees

And this is super super positive news for me

 

I gave a feeling they may have got that backwards.... the rates are quite high all the same

 

Sounds like Macquarie, definitely got the P&I and IO rates around the wrong way, too good to be true.
It's good practice to get them to email you a copy of the rates they've quoted over the phone.

 

Thanks k. And yes Macquarie

After querying yes they confirmed they got it wrong way around.

That's pretty frigging irresponsible.
Thanks you saved me a headache!

 

3.83% for PPOR with P&I

4.77% for IP with IO

Just went direct to the bank to get it, they also looped 0.97% off my IP loan without being asked

 

So your IP loan was 5.74% before, no wonder they could knock off 0.97%, you were on a really high rate to begin with, they just put you back on a normal Investment rate.

 

Some further context such as the amount, lender, product and LVR would be useful, but that's not particularly special.

 

Yeah, so what's the mortgage broker who got the loan for me initially doing?

 

OP asked what interest rate others were getting, I answered. Simple as that. I never claimed to have the best rate, or that it was special.

I can tell you it's a better rate than what mortgage brokers I consulted have quoted me, so I would say most mortgage brokers aren't very special.

 

You could also ask what's the lender doing? Just upping your rate and not offering any discount, meanwhile new clients are getting a better rate while existing customers like yourself are just getting increased rate. Only when you brought it to the banks attention (actually the banker had to do that for you) then they say "OK you caught us, we'll put you on the rate you should be on"

 

Correction "the mortgage brokers you've dealt with aren't very special" same can be said for bankers I've dealt with. Plenty of other brokers out there but you seem like you're on a mission to bash brokers lately...

 

You mean the mortgage broker expects his trailing commission as a free lunnch and does nothing to monitor the interest rate? What a joke that is! Thought this person was meant to be an advocate for me... but wait, it's the bank who pays him - oops!

I was acutely aware of the interest rate and I knew I could easily refinance it with another bank. But, since I wanted a loan for a PPOR with the same bank I didn't want to go hitting my credit file.

 

Brokers don’t have access to your personal details with the bank. They aren’t informed when your rate changes. They are paid an upfront commission, from the likely profit the bank makes, to ‘introduce’ you to the bank as a new customer. They are paid a trailing commission to dissuade them from taking you to a new bank 6 or 12 months later.

 

Moot point IMO, how hard is to make a phone call and ask? Broker should know better than anyone that banks hike rates. No excuse for incompetence or laziness.

 

Well a quick phone call to the broker would've been easy too, there really is no excuse why you couldn't have done that. Would not have had to refinance to get a better rate, they could just get a discount with your existing lender so your comment regarding a hit on your credit file is irrelevant.
The lender is the one that put your rates up not the broker.

 

Phone Call to the client? The broker can’t call the bank, or they won’t give out the information in most cases.
Brokers do usually contact their existing clients, old school was a snail mail newsletter, birthday and Xmas cards, these days it’s emails.
You weren’t on your brokers list? Or you didn’t read their emails?

 

Now we are talking sense.

Really depends on your short, medium and longer term goals as well as the service level at different lenders at different times as it will vary from week to week who is suitable.

 

Once you have maxed out servicing and are comfortable with the accumulation to date, does it ever make sense to fix everything to a low rate for say 5 years just for piece of mind? Or is this insane?