Best interest rates in the market in 2021

This is just what they offered when I had called. Did some research beforehand and thought it was pretty good, so I accepted it.

 

Ic but every time when I asked cba they just said they can’t lower any more, it’s about 700k loan

 

Just been offered the following options for a new investment property, 80% LVR:

- 2.84% Variable P&I
- 2.24% Fixed for 2 years P&I
- 2.39% Fixed for 3 years P&I

Probably not the absolute lowest I could shop around for, but probably not worth moving for either.

Thoughts?

 

Have a look at Adelaide bank, they have 2.38% var P&I (IP loan)

Rates and fees

 

Hi There, that means CBA has discounted you 2.12 points below SVR for PPOR loans and 2.33 points below SVR for Investment loan IO. That is some discount.. pls. confirm

 

Yes.

 

We were getting the same 6 months ago 2.39% for 2 years and 2.44% for 3 years fixed IO IP. Interesting that investment rates haven't moved much.

 

BankSA / St George quote last Friday (P+I):
1yr - 2.59%
2yr - 2.29%
3yr - 2.49%
4&5yr - 3.09%
Variable - 3.22%

 

Could you pls. advise whether you approached CBA directly or through a broker for these discounts.

The discounts below SVR for variable loans mentioned are incredible I have to say as never heard such discounts with CBA.. specifically the 2.33 below SVR for investment IO loans. If you don’t mind asking what’s your total lending? Thanks

 

Through broker, total $2.66M borrowing.

 

thanks for your response. Could you pls. advise the broker name if possible. Thanks

 

I went through a CBA contact, and got the same with a $250k IP loan (along with a <$1 mil OO loan). PM if you are interested.

 

My ppor P&I loan is currently in a variable with a rate 2.59% and the current bank said I did get good rates so no more discount and suggested to split and fixed (2yr fixed they offered is 1.84%), is that a good idea to fix (let say 2yrs) it now or keep it variable?

 

Ask your broker to run the numbers for you.

 

Im currently on

PPOR P/I variable 2.44 %

2yr fixed I/O investment 2.39 %

Investment I/O variable 2.89 %

about 3.2 mill lend

all with Westpac

talk to Curtis at Confidence Finance who helped me set this up

I’m pretty happy with those rates

 

Greater bank is offering 1.59% fixed for 2 years.

U bank had 1.79% for 3 years, although I think that offer may have lapsed...

 

Silly question but what's the difference between a fixed rate IO loan and a variable IO loan?

Say I have a 3 year fixed rate IO loan, does that revert to P&I for the rest of 27 years? Or will it still have 2 years of IO?

Does a variable IO loan mean 5 year of IO and 25 year of P&I by default?

 

Fixed IO investment 2yr @ 2.49 yesterday with CBA

 

One is a fixed rate, one is a variable rate most fixed rate loans don't allow offset accounts to be attached during the fixed period.

Depends how it's structured in the application stage.
If you get a 30 year loan with 5 years IO and a 3 year fixed IO rate then yes, after the 3 years fixed term ends the loan reverts to IO variable for another 2 years, then P&I over 25 years.
If you only request a 30 year loan with 3 year fixed IO then you would only have IO for 3 years and revert to P&I over the remaining 27 years.
It's all about how the application is put together, best to use a decent broker to get it right.
(Note if you only have 2 year remaining on your variable IO loan, you cannot fix the IO for 3 years, only for the equivalent of the remining IO term)

No 5 years IO is not default, you can ask for a 1 year variable IO rate if you want.
5 Years is typically the maximum IO term you can request in one go, some offer more than that but serviceability needs to be very good due to the way the debt is treated in serviceability calculations.

If you want to extend an IO term, a full credit assessment is required so it's often recommended to go for a 5 year IO term from the start if you can.
IO loans can always be converted to P&I at anytime without the need for a credit assessment.