Best interest rates in the market in 2018

Discussion in 'Loans & Mortgage Brokers' started by Toilandtrouble, 1st Jan, 2018.

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  1. Toilandtrouble

    Toilandtrouble Well-Known Member

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    {Note from mods - this thread continues from here: Best interest rates in the market atm!}



    My broker said best he could do with CBA was 4.79% IO (with offset) for investment property. From what I am seeing here, CBA could do better or is this standard with what others are seeing.
     
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  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Lvr

    Voume of lending

    Security location and tenacity of broker or banker can have influences on the pricing .

    Ta

    Rof
     
  3. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member Business Member

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    There are better deals out there than the CBA, but the CBA does have a number of policies to suit circumstances that other cheaper lenders might now allow. Your broker may be making the recommendation taking more into consideration than just the interest rate.
     
  4. Toilandtrouble

    Toilandtrouble Well-Known Member

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    Yes we are going with CBA for more than just IRs, but curious if there is any room to push there.

    We are looking at 80% LVR, capital city purchase up to a purchase price of $1.3-$1.4M.
     
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Have seen

    4.69 to 4.74 recently for that sort of mix, but it does vary week by week

    Ta
    Rolf
     
  6. martini

    martini Well-Known Member

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    I’ve got 5.05 on just under $500k IP IO with CBA in Brisbane, 70% LVR.

    I’ve also got 4.58 IO and 4.03 P&I Split loan on PPOR total loan $550k (not quite 80% LVR but LMI paid on some $ a long time ago)

    CBA was adamant in Oct that they won’t do better on the rates. I’m looking at a change to ING - rough calcs $4.5k in interest savings.

    Have CBA moved at all since Oct? Do you think it’s worth another go with them?

    TIA
     
  7. Morgs

    Morgs Well-Known Member Business Member

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    CBA generally won't do anything for you until you try to move your loans to another lender. Then their retention team will (most likely) offer you a better deal.
     
  8. qak

    qak Well-Known Member

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    I can beat that - CBA will do 0.00%, pretty sure other FIs will match that!
     
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  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    strata title property ?

    ta
    rolf
     
  10. jprops

    jprops Well-Known Member

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    So what's the strategy here? Do I need to show I mean business or will a simple call stating I'd like to move work?
     
  11. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    CBA weren't as competitive - it has been a bit better in the new year.

    The IP rate seems on the higher end - you may be able to negotiate it down or alternatively look at fixed IO rates

    For owner occupier - lender selection is far more important than just the interest rate - as ING may not give you the same flexibility moving forward.

    When did your loans settle?
     
  12. martini

    martini Well-Known Member

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    Nope, inner ring land and old house.



    I tried calling (multiple times). Had ING do valuations. Told CBA exact offer from ING. Asked how to discharge, what fees would be. Was very open with the last guy (who was helpful - others I spoke to were not) - he got a rate review (?) but no change.


    PPOR 9 years ago; IP 3 years ago.
     
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  13. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Then you should be able to do better. Generally they are not willing to negotiate when they have provided rate discounts in the last 12 months or if the property settled less than 12 months ago.

    Bank's can be more competitive with new business, and not so much with existing business.

    Definitely much better opportunities out there.
     
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  14. Bendigus

    Bendigus Well-Known Member

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    I don't know much about these things or about the art of negotiating. But from what I can tell just from looking at websites, Macquarie bank offer IP IP 70% LVR for 4.39%. If you want an offset etc. then it has an annual fee of about $300.
     
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  15. Joel2

    Joel2 Member

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    Hi Guys,

    I've been trying to negotiate with my bank manager to improve my interest rates. Would I be correct in thinking the below is the best available currently?

    1. IP, <80%LVR, P&I - 3.99% (westpac, Ubank)
    2. OO, <80% LVR, P&I - 3.59% (westpac, AMP)

    Are there any other lenders offering this rate or better?

    Cheers
     
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  16. Bendigus

    Bendigus Well-Known Member

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    There are a handful of non-banks that are on par or slightly lower than 3.99% Such as Tic:Toc, Virgin Money, Mortgage House, State Custodians, Homestar, Reduce Homeloans

    But if you just want to look at advertised rates from Banks then following small banks have similar rates. (Excluding fees)


    Hunter United - 3.99% "Platinum Investment Loan" https://www.hunterunited.com.au/products/home-loans

    Macquaire 3.99% - Need 70% LVR

    P&N Bank 4.19%

    Heritage Bank 4.19%

    Bank of Melb 4.19%

    Bank of QLD 4.09%
     
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  17. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    One thing to keep in mind here is that some of these are NON banks, and dont have the 250 000 cash guarantee.

    What that means if one has a loan with nothing in the redraw or """"" offset""""""" then no probs usually.

    but if one uses such a lender and have say 200 k in the redraw........... and we have a GFC style liquidity issue,then your money stays THEIR money, until the liquidity issue is resolved.

    We havent seen significant issues like that here in oz, but One cant exlude a USA style "savings and loans" crisis of the 80s .

    Loans aint Loans


    ta
    rolf
     
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  18. thydzik

    thydzik Well-Known Member

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    I am having the same problem with Westpac, no offset and charged on redraws, pretty much useless.

    NAB was happy to put me on a standard investment loan with offset before.
     
  19. thydzik

    thydzik Well-Known Member

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    Crazily low rates, IMO. what are the values?
     
  20. Joel2

    Joel2 Member

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    Standard advertised rate for new loans - have a look at westpac website.
     
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