Best interest rates in the market atm!

Discussion in 'Loans & Mortgage Brokers' started by Switchtronics, 8th Oct, 2017.

Join Australia's most dynamic and respected property investment community
Tags:
Thread Status:
Not open for further replies.
  1. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,598
    Location:
    Gold Coast (Australia Wide)
    Not crazy at all

    Good management strategy if you take into account the issues and limits of fixed rate loans

    Ta

    Rolf
     
    Redwing likes this.
  2. Otie

    Otie Well-Known Member

    Joined:
    26th Mar, 2016
    Posts:
    1,404
    Location:
    Vic
    That gives me confidence. I was planning to do that this year just for piece of mind. was thinking about a 4-5 year fixed term just so that have the piece of mind for the next 5 years atleast.
     
  3. bobbyj

    bobbyj Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    350
    Location:
    Sydney
    I've fixed ALL my investment loans for 3 years.
    It gives me peace of mind of fixed payments.

    There's the option to put in $10,000 into each individual loan with my bank.
    Just be mindful that the break fees can be pretty huge. If you're definitely not selling and you're working then it should be alright.
     
  4. Switchtronics

    Switchtronics Well-Known Member

    Joined:
    10th Oct, 2015
    Posts:
    224
    Location:
    Sunshine Coast
    Thanks for all the feedback everyone. Good to see great chat about peoples portfolios and hunting for great deals. Appreciate all the feedback and Merry Christmas.
     
  5. Switchtronics

    Switchtronics Well-Known Member

    Joined:
    10th Oct, 2015
    Posts:
    224
    Location:
    Sunshine Coast
    On a side note how have we found lending procedures for trusts and companies and future serviceability?

    I am currently banking with Westpac and found them pretty accomodating. They dont offer offset accounts for trusts however just redraw. I have found them to be fantastic for organising loans especially since I had a business banker assigned. I have noticed a few banks consider trust distributions differently and in turn affects who will lend to you.

    Rates for i only investment at 4.75% and ppr 4.35%.
     
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,598
    Location:
    Gold Coast (Australia Wide)
    from our side WBC and trusts with corp trustees are a little yuk, because they are treated and assessed as business loans so..........

    No LMI
    Less rigour with APRA/ASIC issues, more so where the loans come in via a non broker channel( many other banks have this same "benefit" for the moment), so serviceablity can be in the eye of the beholder.
    A different credit assessment and production area than resi
    Inconsistent treatment of retained profits of operating entities or treatment of distribs to bucket companies, even where sole directorship is the same as the primary guarantor
    No Offset


    ta

    rolf
     
    Switchtronics likes this.
  7. God_of_money

    God_of_money Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    364
    Location:
    Gold Coast
    I am with CBA and they dont offer full offset account for trust with corp trustee.. only MISA account. Do you know any bank offer full offset for trust with corp trustee?
     
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,598
    Location:
    Gold Coast (Australia Wide)
    Hiya GOM

    I havent looked into in detail, but Id say many lenders do.


    As an aside, the MISA is a good thing, I have a couple myself

    it is 100 % real offset from a financial perspective, BUT its not transactional like the Every day offset at CBA

    Many people lament that, reality for many of our clients is that we use that as a risk management and budget management tool.

    We generally advise to keep spending money in a separate account to the money we are saving for other things.

    Its a bit of a shoebox / envelope mentality, but our broking and financial planning biz builds solutions to the needs of the client ( those needs are not sometimes not obvious to the client !), rather than the dogma of the industry and licensee.

    ta

    rolf
     
    Corey Batt and God_of_money like this.
  9. Medine

    Medine Well-Known Member

    Joined:
    20th Jul, 2015
    Posts:
    77
    Location:
    Melbourne
    Suncorp have an owner occupied offer with interest only repayments for 3.89% at present.
    Of course it remains to be seen if they will actually approve for a PPOR!

    I recall fixing a few years back with rates went down to 5.39%
    And now that rate seems like rubbish!
    How times change :)
     
    Switchtronics likes this.
  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,598
    Location:
    Gold Coast (Australia Wide)
    Suncrap and IO

    Im surprised they havent been taken out by ASIC yet for false advertising :)

    ta

    rolf
     
    Dean Collins likes this.
  11. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,130
    Location:
    03 9877 3000
    My most recent discussion with Suncorp on this very specific topic was about 2 months ago. They said flatly that they would not approve I/O for on an owner occupied property.

    I did get an I/O PPOR loan approved with them about 18 months ago. Even back then they were quire resistant to it and it was only some very specific supporting information in the application that convinced them.
     
  12. Inov8ive

    Inov8ive Well-Known Member

    Joined:
    17th Jul, 2015
    Posts:
    709
    Location:
    Sydney
    CBA just offered me 3.92 for P&i OO. And 4.5 IO for IP. Its better than what I had but im not completely satisfied
     
  13. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

    Joined:
    31st May, 2016
    Posts:
    2,738
    Location:
    Australia
    Can definitely do better. Of course depending on goals and borrowing
     
  14. Inov8ive

    Inov8ive Well-Known Member

    Joined:
    17th Jul, 2015
    Posts:
    709
    Location:
    Sydney
    Yes i know but i have recently become self employed, so its probably unlikely other banks will work with me for at least another 6 months
     
    Property Twins likes this.
  15. Athikalaka

    Athikalaka Well-Known Member

    Joined:
    1st Jan, 2016
    Posts:
    188
    Location:
    AU
    I was offered 4.04% with CBA (3 year fixed P&I Investment) then reverts to 0.6% below reference standard variable rate. Each with different goals but I'm hoping to draw equity out after that period.
     
  16. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,130
    Location:
    03 9877 3000
    That's their standard offer. Make sure you renegotiate that 0.6% discount when the fixed rate ends (they can do over twice that).

    Also you can access equity whilst a fixed rate is in place. If the equity is available you don't have to wait.
     
    Athikalaka likes this.
  17. Athikalaka

    Athikalaka Well-Known Member

    Joined:
    1st Jan, 2016
    Posts:
    188
    Location:
    AU
    I was planning to see how much equity I could draw out with all my existing properties. I want to consolidate as much as I can from my LOC in to the securing loan, freeing up my LOC for another deposit. Should I be trying to access the equity from the different lenders as a staggered approach or it's fine to ask all lenders at the same time close to when I want to purchase another property? (will it affect the credit history?)

    Depending on how the lenders play out in the future, it might be better to move my IP from those 2nd tier lenders in to CBA or other Big4. Time will tell.
     
  18. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,130
    Location:
    03 9877 3000
    You might want to get help from a broker. Specific information is required to give you proper advice on this, but it sounds like you might cross collateralise everything with your plan (which is really bad).

    Cross collateralisation - 10 reasons to avoid
     
    Athikalaka likes this.
  19. Athikalaka

    Athikalaka Well-Known Member

    Joined:
    1st Jan, 2016
    Posts:
    188
    Location:
    AU
    I plan to get a broker to set it up if I decide to move them in to the same lender. Been reading enough on x-coll and it's definitely something I want to avoid and relying on a broker to do it would give me peace of mind.

    I wrote up a spreadsheet with cash flow and principal paid for the next 3 years on my fixed so I know how much principal gets cleared. It's now a matter of how much capital growth I get by the end of that fixed period and whether the lender will give me equity to 80% of that new value so I can move my LOC deposit (as mentioned above).

    But yes.... broker for sure.
     
  20. Jamesaurus

    Jamesaurus Well-Known Member

    Joined:
    18th Dec, 2017
    Posts:
    439
    Location:
    Canberra
    Last edited by a moderator: 31st Mar, 2020
Thread Status:
Not open for further replies.