Best interest rates in the market in 2018

Thanks Jess. When you say they do you mean mortgage lenders in general or CBA specifically? I have no loyalty to CBA and if we could get better rates we're happy to walk.

 

Lenders generally - it’s a bit of a regulatory thing. Under 80% it can be done but it’s not encouraged. That said you can get lower OO IO rates than you’ve got currently, but will depend on lvr and whether those lenders will suit your longer term plans.

 

Sure, that makes sense. Our IP loans are LVR of 88%.

 

In that case you probably don’t want to refi them anyways or you’ll have to pay LMI again. If you want to fix your rate CBA are pretty competitive right now - flick your broker an email and they can send you the form.

 

These rates sound really attractive for my OO. Can I ask brokers and others how often can/should you switch banks to take advantage of a better deal? Is 6 months after settlement too soon?

 

Technically not too soon - but what was the origin of your loan (broker/branch)? I'd start by talking to them to see if they can make it right before going elsewhere. Sounds like they may have missed the mark on understanding your needs in the first place.

 

It's not too soon, but if you paid LMI for the purchase you'll be up for that all over again so make sure you consider all the flow-on effects if you decide to go that way.

If a broker did your loan I'd highly recommend going back to them or you might also find yourself up for claw back charges - I'm sure they'd also appreciate the opportunity to help if you're unhappy with the loan they did for you.

 

can anyone kindly give me their opinion,

so im currently on 5.69% which is high on PI for an IP, ive just come off IO about 6 months ago
not sure which way rates are going to go as ive heard both arguments, (eg 8 rate rises in the next two years vs apra intereference has laxed so no changes)
happy to fix as not going to sell,
$350 change fee,
Not willing to refinance/change lenders due to changes in personal situation
the rates seem to not be great, but I dont have a choice
a few months ago IO was far higher than PI, but now seems to be similar, am considering going back to IO, happy to stay on PI as well

 

Give them a ring and see what they'll do - AMP are usually pretty good at reducing things down.

 

I recently got rate discount for my variable rate loans. 3.99% P&I OO, 4.77% IO INV and 4.92% IO INV. LVR<=80%. I think they are still quite high but cannot move lender now, at least for 6-12 months. Lender is Bank of Melbourne. Do you think I can/should get further discount?

 

Are they fixed or variable rates?

 

Very similar to what CBA just gave me (yours a tad lower)

 

variable rates.

nab was quoting me <3.7% OO, and 4.25% INV

 

That's their new pricing for their basic loan. Lenders are starting to get competitive again.

Most of the rates I'm seeing in this thread are simply offers at any given time if you know what to ask for, but here's one that's truly unique...

3.49% variable & 50% off the fees, amount > $750k, owner occupied, principal & interest - negotiated last night with a second tier lender.

I think someone at the bank was trying to suck up to me.

 

How much fees were left? Did the comparison rate differ too much from advertised rate? Pretty great rate!

 

Comparison rates are largely irrelevant as they don't compare apples with apples, but it is a substantial discount on the advertised rate. It's also rare that lenders waive fees, especially second tier lenders. I was genuinely surprised at the offer.

Really though, rates are circumstantial. For years now lenders have been customising interest rates to individual borrowers. It's mostly a case of knowing what to ask for and when. Most of the comments in this thread are actually nothing special, just current advertised rates which most brokers will have full access too.

What really frustrates me is when someone tells me their friend is paying 3.69%, why can't they have that? What they fail to mention is their friend is a first home buyer paying P&I and they're buying an investment property wanting I/O. Again they're comparing an apple with a steak sandwich.

 

You don't want to disclose the lender?

 

Not really. This is a lender that's available through most brokers. The circumstances however are fairly unique which took it from a great offer to an exceptional one.

 

Call their retentions team. They are good and will negotiate.

 

Rates are pretty sharp across the board:

• AMP, Auswide 3.59% (conditions and restrictions on eligibility, super slow too) on OO P&I
• Other middle tier lenders between 3.59-3.79
• Majors around mid/high 3.7's, early 3.8% on SVR products at the moment for most LVR's/loan sizes
• Online cheapies a bit cheaper, early 3.5x's now

Also a good time to request discounting on existing loans, particularly IO INV loans that were underwritten ~12months ago. Rates have dropped from 5.3ish to 4.6ish, and most are re-pricing existing book too.

Not a bad time for retention pricing on existing PPOR debt too, retentions can get close to AMP offers from some of the larger lenders (St G).

Essentially, its a very good time for discretionary pricing at the moment. Swings in roundabouts, but its in the consumers favour at the moment.