Best interest rates in the market in 2021

Discussion in 'Loans & Mortgage Brokers' started by thunderstrike888, 6th Jan, 2021.

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  1. melbourne171

    melbourne171 Well-Known Member

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    Thanks Lindsay. I have no offset fund and little choice to refinance. Then, I would take it anyway.
     
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  2. Pier1

    Pier1 Well-Known Member

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    Yes was quite surprised, previously they had been very clear on not budging
     
  3. Pier1

    Pier1 Well-Known Member

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    Argh! So I must have misheard them on the telephone
    Thought I was supposed to get 2.39
    Paying bills and checked HL as we do
    New rate applied from 9/2
    2.29
    Sweet
    I will take the extra dollar a day
    3 min phone call
    $4015 saved p.a. or $11 per day
    $4k - that's a good holiday
     
  4. melbourne171

    melbourne171 Well-Known Member

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    CBA offered me 2-years fixed of 2.39% and 3-years fixed of 2.49% for an existing loan, still higher than other lenders. I failed to negotiate with CBA for matching rates.

    Questions: Should I select 2 fixed or 3 years fixed loan in this environment with the interest rates above?

    2 years fixed loan
    Pros:
    Better interest rate & more flexible
    Can re-fix another 3 years after 2 years when the interest rate is likely to be fairly low.
    Can sell IP or refinance after 2 years
    Cons:
    The interest rate may be still very low year 3.

    3 years fixed loan

    Pros:
    Can re-fix another 3 years after 3 years if the interest rate is still fairly low.
    Cons:
    Higher interest rate & less flexible
    The interest rate may rise in year 3.
    Cannot sell IP or refinance within 3 years
    The interest rate may drop further within 3 years

    Anything else should I consider? 2 or 3 year fixed loan is better option?
     
  5. Lindsay_W

    Lindsay_W Well-Known Member

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    You've got to make the decision yourself but just look at your list of pros and cons- you've got 3 pros for the 2 year fixed and only 1 for the 3 year fixed, - I think you know which is the better option ;)
     
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  6. thunderstrike888

    thunderstrike888 Well-Known Member

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    That is NOT that bad. This is for 2 years fixed investment loan P&I right?
     
  7. melbourne171

    melbourne171 Well-Known Member

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    yes, it is P & I.
     
  8. thunderstrike888

    thunderstrike888 Well-Known Member

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    May I ask approx. how much loan amount this is for and the LVR on the property? The reason is I have > $2M in loans but a low LVR.

    So if your loan amount is less than that with a higher LVR than me I think I may be able to negotiate even a better rate than 2.39%
     
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  9. melbourne171

    melbourne171 Well-Known Member

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  10. thunderstrike888

    thunderstrike888 Well-Known Member

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    Thankyou mate. I'll try my luck soon. :)

    Let us know if CBA end up giving you an even better rate. 2.29% would be nice. :)
     
  11. melbourne171

    melbourne171 Well-Known Member

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    It is hard to negotiate with CBA for a lower rate. They do not care what we said, even thought ask for matching price.
     
  12. meme plecko

    meme plecko Well-Known Member

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    I was pleasantly surprised by CBA today. Due for re-fix of my smallish investment loan (~240k). I am on the wealth package so advertised fixed rates are 2.69% for P+I. One quick phone call and they offered 2.59%. Not as much discount as what others are getting but LVR for this loan is ~95% (a story for another post). Small loan amount with LVR of 95% and still 0.1% reduction, happy with that!
     
  13. melbourne171

    melbourne171 Well-Known Member

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    Get a good 1-year Fixed Interest Only for my existing loan with Newcastle Permanent. However, I must have a serviceability re-assessment. Does anyone know if Newcastle Permanent will go thru the full assessment, including valuation & a credit check, for an existing loan?
     
  14. robbo135

    robbo135 Member

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    How are current loan approval (unconditional approval) processing times atm for the big 4 banks like atm?
     
  15. Propin

    Propin Well-Known Member

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    NAB - one week
     
  16. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    2 days to 6 weeks depending on if retail, broker or self employed

    ta
    rolf
     
  17. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Not on my Panel, but I expect they are like all other lenders moving from PI to IO.

    WHole kit and Caboodle - it would most likely be a full assessment .

    ta
    rolf
     
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  18. thunderstrike888

    thunderstrike888 Well-Known Member

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    So an update for you guys. A work colleague got 2.34% at CBA fixed P&I with $1.2M in loan and around 80% LVR.

    I think thats the lowest I've heard with CBA thus far.

    Anyone else been lucky to get lower?
     
  19. Redom

    Redom Mortgage Broker Business Plus Member

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    WPC at 1.79 2 year fixed @ 70% is very sharp for big loans atm (OO P&I). PAYG assessment has sped up too for certain broker segments. Self employed still horrendous.

    Overall discounting is pretty strong atm.
     
  20. thunderstrike888

    thunderstrike888 Well-Known Member

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    What about Investor?