Best interest rates in the market in 2021

Not the best and not the worst

 

Not recommending it, but it was interesting to see this from U-Bank (P&I)

 

What would be a better option right now with full offset

 

About 8 other lenders that I have on my panel

 

yea thanks, can they all have multiple offsets

 

3.85% SVR (with package) on their website so sub 2%?

 

Nope, standard package discount is 0.7% off the SVR, as per their website "Principal and Interest repayments, an interest rate discount of 0.70% p.a" - however as brokers we can get much better discounts than that.

 

Phoned lenders retention team this week asking for a review (currently 3.39 variable)
Sure they said what have you seen
Oh about 2.72 variable ppor >45% lvr
Let’s have a look
Yeah we can probably do better with that lvr
How about 2.39
Sounds great what type of loan, fixed?
Nah variable same product, off set, internet redraw, all the same bells and whistles
Awesome what do we have to do fill some forms out or email or something
Nah mate it is all recorded you just agree to the new rate and it starts tonight.
I agree
Cheers have a good day
Sweet

 

@Pier1
Which Bank

 

Hi folks,

Am currently working with a broker on pre-approval for my first IP (in NSW) and the best IO options presented to me on 90% LVR are:

3.29% Variable
2.69% 2yr Fixed

Both with St George. Should I be shopping around more or be talking to someone else? And if so, feel free to recommend.

 

Some mob up Toowoomba way

 

I understand the above about what a broker with negotiate. Looking at your "seeing 2.07% discount off the SVR" comment and trying to confirm the rate actually been received by some.

per CBA website;
SVR (wealth package) is 3.85%
SVR (without) 4.55%

 

The SVR is 4.55% (for owner occ) you can do the math

 

I have a discount of 1.55% on an investment loan with CBA and the current discounted interest rate is 3.58% pa. I thought that CBA calculates my interest rate wrong and wrote a letter to them as follows:

I find the investment home loan has an interest rate of 3.58% p/a. Currently, the interest rate for Standard Variable Inv Loan with Package is 4.43% p.a (check out Home loan interest rates - CommBank).

As I have been offered a discount of 1.55% when applying for the loan, my interest rate for this loan should be 4.43% - 1.55% = 2.88%. Can you correct the interest rate for this investment? variable loan? Also, can fix the incorrect interest charges in the previous months due to the higher interest rate applied?

CBA lending specialist replied me as follows:
Hi xxx,
Please note you have incorrectly calculated the interest rate concession. I have illustrated how it works below:
Investment loan Base rate 5.13% - concession (1.55) = 3.58%
You are reading Base rate with min concession of 0.7%, which is 5.13% - 0.7% = 4.43%
You are obtaining 1.55%, which is better than the minimum. The Base rate not inclusive of concession is 5.13%.
Confirming there is absolutely no error in the interest rates mentioned.

I am unhappy because the discount was applied on the advertised Standard Variable Investment Loan when I applied for the loan 5 years ago. Now CBA introduces an Investment loan Base that is much higher than Standard Variable Inv Loan (difference 5.13% - 4.23% = 0.9%), and even considerably higher than RBA interest rate (5.13% - 0.10 = 5.03%). This Investment loan base is not advertised and determined by CBA on its own. I do not think it is fair play.

Do you think what the lender said correctly? If he is wrong, then can I complain about this with Consumer Affairs or Australian Finance Complaint Authority?

I requested the CBA credit team review and offer a competitive interest rate. Let see what that can offer.

 

Sorry to be the bearer of bad news but you got it wrong, not the banker... What they told you is correct.
They have not introduced the 'Investment loan base' it's just another way of saying Standard Variable Investment rate, also known as the 'rack rate'. People just do not understand what the actual standard variable rate is, it's with no package discounts etc, it's likely shown in you loan offer documentation. Those Standard variable rates can also be found on CBA public website via the link you posted, it's clear as day Investment SVR is 5.13%

If you want a better discount, suggest using a broker, you should be able to get at least 1.95% discount approved.

 

Much clearer, the website lists the package SVR first.

Thankyou

 

Thanks for your replies. I got it.

Now I am offered the following rates from CBA:

Standard Variable IO Base rate 5.39% - Concession 1.77% = Final Pricing 3.62%

Fixed 2 Yr and 1 YR IO Base rate 3.04% - concession 0.35 = 2.69% and when it reverts to principle and interest the following new base rate applies 2.84% - concession 0.35% = 2.49%

Should I take it?

 

What's your LVR? more than 80%?
Without knowing your full situation I can't say if you should or shouldn't take the fixed rate offers, if you cannot refinance to another lender maybe there's not much choice?
Don't forget when you fix your rate the loan cannot be offset like it can when variable - might not be an issue if you don't have funds sitting in the offset currently but something to consider.