Best interest rates in the market in 2018

{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.

 

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.

 

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.

 

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

 

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.

 

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

 

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?

 

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?

 

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.

 

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.

 

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.

 

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

 

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%

 

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.

 

Crazily low rates, IMO. what are the values?

 

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