Best interest rates in the market in 2020

Apologies if I've missed this:

What is the maximum investment loan IO term that is being offered at present (in general)?

 

Suncorp 1.89% 2 yr fixed seemed pretty good

Suncorp Bank announces record low 1.89% fixed rate

 

Any indication whether St George will be dropping its fixed rates for investments as well?
Currently you can get an 80% LVR P&I OO loan for 1.94%!

 

Nothing official yet.
I am sure we will know soon.

 

Rams have put out 4yr fixed 1.99% on value packages (can use offset) $395 year fee.

All my loans are with Rams but hate the thought of fixing for 4yrs.

Are they betting that loans will get lower by trying to lock you in for that long??

 

I'm with NAB on a $1m / 78%LVR Owner Occp loan currently on a negotiated 2.69% variable with 100% offset, $395/pa fee.

Is NAB going to offer its 1.98% 4 year fixed to existing customers? I believe I will be able to switch to this, or 2/3 yr @ 2.09%...

I will fail servicability elsewhere because my income dropped a bit and to get this loan it was an IP at the time so previously used the rent income to boost my cashflow.

Should I switch to this 1.98% fixed given I can't change lenders? Or try to drive them down on the variable rate a bit more? I do like the offset (guess I could split and keep say 300k in variable; that'd only cost me $213 a year for the privilege), and variable keeps me free if I ever want to sell, but can't keep ignoring the fact I can save $7k a year for 4 years and really drop my repayments.

I also may be converting this back to an IP in 3+ mths, so better to secure the fixed Owner Occupier rate before I eventually do that?

Would love some advice/help on this..

 

Yes all existing and new customers can access the recently announced fixed rates

It would pay to check this with a broker, don't assume.

These are questions you need to answer in my opinion
- Are you going to sell the property in the next 4 years?
- Do you have $ cash to put in the offset against a variable rate loan?
- Do you think variable rates will ever get that low?

 

RBA have clearly said that the interest rates will not go up until they meet the inflation target. This means clearly interest rates will not go up for 4/5 years from now. This is the reason banks are offering so low interest rates for four years fixed term not five years. I am not the expert but just guessing what is going to happen I would wait until March/April to fix for four years.

 

RBA said rates will remain at current levels for up to 3 years.
Why do you recommend waiting until March/April to fix ?

 

I thought the lending rules are going to be more relaxed around March? If I have to refinance, I would want to take out 80% of value as loan from IPs. Relaxed lending rules might help that?

 

Have you checked if you can do that now?
Do you know IF you have to refinance or not?
You may be waiting for change that doesn't come or even if it does may not be of enough benefit anyway, and sounds like you don't know for sure that you can't do it now.
Best speak to a mortgage broker to work these things out.

This makes it sound like you've recommended to the OP to wait until March/April to fix rates

 

NAB 1.98% fixed for 4 years

 

Amp OO
2 and 3 year fixed 1.97%
5 year 2.29%

 

2.59% CBA, 1 year fixed, IP

 

That's better than the published 2.69% effective 11thNov. How'd you manage that?

 

ANZ 1 year fixed Investment @ 2.59%
ANZ 2 & 3 years fixed Investment @ 2.49%
All P&I repayments