Best interest rates in the market in 2021

{Note from mods - this thread continues from here: Best interest rates in the market in 2020}




Hi All,

Was hoping for some recent experiences. I have about 2.5 million in investment loans with a single major bank. What are the best fixed investment P&I rates people are getting these days?

All properties are LVR 80% or lower. Some as little as 40% LVR majority would be in the 40-75% LVR range.

I know CBA will offer 2.49% fixed P&I straight off the bat for me. I was hoping for 2.2X or 2.3X percentile range and I know they will give me a special rate because of my loan size and being a customer for 30+ years. (I have not discussed with CBA yet).

I've done research on below rates. Any other options I'm missing for good rates? I dont really care who I go with but I would like to stay with Big 4 if possible or at least one of the larger non banking lenders.

Westpac 2.29% (incl extra 0.2% discount on loans above $150k + $2k per loan cashback on refinance)
Ubank - 2.29% Fixed P&I for 2 years
Adelaide Bank - 2.35% Fixed P&I for 2 years
TicToc - 2.17% Fixed P&I for 2 years
Greater Bank - 2.39% Fixed P&I for 2 years
Homestar - 2.18% Fixed P&I for 2 years
P&N Bank - 2.29% Fixed P&I for 2 years
Unibank - 2.25% Fixed P&I for 2 years

 

Thanks - I'll check them out.

I think I've covered most of the lowest rates currently available for investors. Anyone had recent experience with CBA managing to get special rate around 2.2X% for investment P&I?

 

I just refinanced out of Bank of Melbourne where I was paying 2.69% variable P&I across to Citibank (approved yesterday) for 2.29% variable P&I and also $4k cashback too - after refinancing costs I'll get to keep about $3k of it.

I think this is a very good deal one of the best out there from my research esp with cashback.

 

I assume 2.29% is Citibank's 5 year fixed rate product? The variable revert rate is 2.69%.

BOM's 5 year fixed rate is 2.19%. Had you fixed your prior loan with BOM it would likely have reverted to what you had, 2.69%.

 

Nope, it's definately variable P&I with $4k cashback.

It was a special deal through a handful of brokers only apparantly.

 

Yes I do, residential IPs in trust with corporate trustee. I requested my bank for a rate review in mid December and got 2.49% for 3 years fixed P&I 80%LVR and 2.99% for IO variable 80% LVR. All investment loans with a big bank.

 

Called my bank who is waiving the break fee (around $3k) for a fixed loan to go from 3.99% fixed to 2.86% fixed for 2 years.

Does this sound like a good deal? Or better to refinance elsewhere? The waiving of the break fee is quite attractive.

 

Which bank is that?
Also, as I understand, you've got to break first then re-fix. Can you break for free and then leave?

 

Please tell me its CBA. I will do my loans as well. LOL

 

That's a shame, I'm with inyourwildestdreamsloans.com.au

 

It's with Newcastle Permanent. I called them to calculate my break fee and ended up getting a call from the retention department. I told them I'm getting my broker to look into refinancing and they said if there was anything they could do to keep me. So they offered to waive the break fee IF I refix to two year at 2.86%

Edit: I have no idea whether this is a rare occurance or not - but potentially given how competitive pricing is and that they are not anywhere near the best prices I've seen in this thread, probably why they are waiving the fee?

 

@Rolf Latham @martini Sorry, only just saw this reply...

So in order to get NAB down further, I actually need to go through applying and getting approval with another lender; then submit the discharge form, and at this point they know I am 100% a sure thing to leave, they will possibly discount it more?

I'm still on 2.66% variable; 1.16m owing on value of ~1.6m (73% LVR). I've been agonising whether to take NABs deal of 1.98% fixed OO for 4 years.

Should I wait till RBA announcement in Feb in case RBA & NAB then drop further?
or just bite the bullet and lock it in while I can, given it's historically not been this low?

I'm just a bit uncertain of my future plans (may develop, may sell, may want to quit my job and start a business, god who knows!) which is making me question whether locking down for 4 years is a good idea. 2 years NABs rate is 2.09 which isn't nearly as appealing. I have a fair bit in offset already so my net loan balance is <1m.

Saving 6.8k in interest a year by fixing is quite appealing though! Oh..what to do....

 

If you got cash in offset and you're only paying interest on, let's call it 1 mill for round figures, you'll save $3632 p.a. if you fix it in at the 4 year fixed rate with NAB (offset account doesn't apply during the fixed period with NAB)
There are other lenders that you could get fixed rates of 2.05% with an offset during the fixed period,
Alternatively there are plenty of lenders offering <2.66% Variable with offset, so why would you stay with NAB?

 

Hi, is this for investment loan with P&I payment? Or OO loan?

 

It was in response to the post I quoted

 

My two points of view on this are:
1) If you're even a little bit unsure around your circumstances in the next 4 year horizon I would strongly recommend reconsidering going down that path. Lots can change over that period (look at what has happened in the last 12 months for instance!). The worst case outcome would be wearing a substantial break cost if changes meant you needed to discharge or sell as an example.
2) If you're still convinced on going with 4 year fixed then make sure it is the lowest possible rate given the time horizon.

 

I should have added some important info that I’m basically stuck with Nab because I’m stretched on servicability due to a 20% income drop. I could refinance but I’d lose my 175k buffer of offset and need to drop the loan LVR.

Rolf - it seems the only way is try to find another lender willing to accept my loan refinance, do all the credit checks applications etc and then file to Nab I’m leaving, at which point they may review and offer me a better deal? Would you recommend going this extreme or unlikely to yield much of a movement in Nab’s offered rates which are fairly competitive I guess.


Interestingly UBank announced a 3 year fixed 1.75%, I would jump on this. I wonder if this gives me any further bargaining power with Nab. Unfortunately the retention team won’t even consider any negotiation on a fixed loan.

I would do a split loan of maybe 750-850k fixed and then leave remainder 250k-ish variable so that I have ability to offset that if my income boosts or I get some work bonuses during the fixed term.