Best interest rates in the market in 2021

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

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  1. Wonderman

    Wonderman New Member

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    Melbourne
    I'm paying 3.4% on two P&I Investment Loans of about 350k & 300k respectively and <80% LVR with CBA. I'm on the wealth package. Planning to review my rates shortly. Can someone please help me with what rate should I be negotiating for and comparable rates with other banks that I can quote?
    Appreciate your help.
     
  2. Gen-Y

    Gen-Y Well-Known Member

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    If you can’t get under 3.1% from the big 4. They are pulling a swift one.
     
    Wonderman likes this.
  3. Switchtronics

    Switchtronics Well-Known Member

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    Sunshine Coast
    How's the lending market atm? Independents and banks seem to be all offering competitive rates.
    What's the best rates atm?
     
  4. melbourne171

    melbourne171 Well-Known Member

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  5. TangibleGoodwill

    TangibleGoodwill Well-Known Member

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    Worth stamping my feet and raising a clenched fist with the following ANZ rates (total loan $2.1 with $900K offset)?

    OO P&I 2.69%
    IO Inv (x 3) 3.24%
     
  6. kaibo

    kaibo Well-Known Member

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    Location:
    Melbourne
    Investment from Westpac all investment loans
    2.65% P and I
    3.25% Interest only
    and can get 4K cash back on either one of the 2 above
     
  7. AsburyJuke

    AsburyJuke Well-Known Member

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    Qld
    I'm currently paying with ANZ:

    2.79% on $430k outstanding loan (PPOR), property value $980k. Variable, P&I, offset account.
    3.32% on $118k outstanding loan (IP), property value $275k. Variable, P&I, offset account.

    I've been offered the following rates to move to CBA:

    2.58% on $430k outstanding loan (PPOR), property value $980k. Variable, P&I, offset account.
    3.16% on $118k outstanding loan (IP), property value $275k. Variable, P&I, offset account.
    CBA offer $2k cash back, which would cover the costs of moving.

    What do you think? Pretty decent offer? The rates posted above from Westpac weren't offered to me...
     
  8. thunderstrike888

    thunderstrike888 Well-Known Member

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    Too high imho.

    Why dont you fix it?

    Fixed Rate home loan - CommBank

    2 year fixed P&I 2.69% on wealth package.
     
  9. Onyx_OCAU

    Onyx_OCAU Well-Known Member

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    Have a look into HSBC Premier. You'll need some level of existing financial relationship to qualify for the "premier" level; but they offer some pretty good rates for home loans. Currently from what I can see on their website, it's $9k deposit in each month, or maintain a savings balance of $150k to qualify.

    I have a P&I investment loan with them; it's variable rate reviewed every 3 months (it's variable but fixed within those 3 months if that makes sense). My current interest rate is 2.02%. I don't know if the same is on offer for new customers; but the product is called "straight line loan".
     
  10. Nickbhu

    Nickbhu Member

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    Location:
    Melbourne
    what's the best rate going for owner-occupied PPOR
    Property price 630k
    Deposit 86k
    LVR 88
    First home buyer. My broker recommended Adelaide bank fix 2yr at 2.2% with an offset account.
     
  11. thunderstrike888

    thunderstrike888 Well-Known Member

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    So an update for you guys interested.

    9 loans with CBA. Loan value total approx $2.5M. LVR ranging from 40% probably up to 70%.

    I got CBA down to the following rates which I think are superb actually and never seen these rates offered to other investors.

    1) 2.19% fixed P&I for 2 years.
    3) 2.29% fixed P&I for 3 years.

    CBA have increased their 4 years rates since they are expecting interest rate rises by then.

    What would you guys choose? I'm leaning towards the 3 years fixed at the moment.

    Anyone able to get better rates? This is as of yesterday.
     
    luckyone, Gen-Y and Anne11 like this.
  12. Clive Palmer's Yacht

    Clive Palmer's Yacht Well-Known Member

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    BCU - 2.28% 2yr fixed investor IO rate
     
  13. thunderstrike888

    thunderstrike888 Well-Known Member

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    Thanks but I was particularly after CBA rates and P&I actually. Preparing myself for semi retirement and need to pay down some of the loans a bit more.
     
    Clive Palmer's Yacht likes this.
  14. Fungus

    Fungus Well-Known Member

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    Sydney
    That looks pretty good for CBA tbh. Just to compare, I've just been offered the below from CBA.

    For my $250k investment loan:
    2.39% IO fixed for 2 years
    2.44% IO fixed for 3 years

    And for my upcoming PPOR loan:
    2.45% P&I variable
    1.79% P&I fixed for 2 years
    1.99% P&I fixed for 4 years

    Are these good rates to take up? And if so, am I better off going for 2 years or 3 years for my investment, and 2 years or 4 years for my PPOR (splitting with variable)?
     
    Anne11 likes this.
  15. PC_USER_456

    PC_USER_456 Member

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    SYD
    Is this the Wealth Package?

    Under that, their advertised rates are 2Y 1.94 and 4Y 2.19. So they are offering you discounts of 15bp and 20bp below advertised levels. If your loan isn't for big bucks, those are reasonable discounts. The SVR is so so, maybe they would improve by 5. It's not too bad.

    I'm less familiar with where investment loan rates are in the market right now but I think you would be mad to take 2.39 2Y over 2.44 3Y. They're almost the same rate. Lock it in for longer.
     
  16. Fungus

    Fungus Well-Known Member

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    This is with the Wealth Package, correct.

    The PPOR is for less than $900k and below 70LVR, so I'm not sure if that is classified as big bucks or not? I think the main thing for me is I'm torn between going for 2 years or 4 years. People have said don't go for that long, but then it's not bad a rate if interest rates do go up again.

    I actually think it's a pretty strong rate for IO as I'm seeing P&I investment loans around that. And I guess you're right...it's barely much of a difference, and investment rates probably won't go too much lower...
     
  17. Dave Radelaide

    Dave Radelaide Well-Known Member

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    17th Mar, 2021
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    Adelaide
    Ive just negotiated and now signed:

    OO P&I 4 year fixed at 1.89 (80%)
    Variable 2.48 (20%)

    CBA. Loan 1.5 LVR 55%

    Do you think I could have done a little better?!
     
    luckyone likes this.
  18. Lindsay_W

    Lindsay_W Well-Known Member

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    I wouldn't be complaining with those rates personally
     
  19. PC_USER_456

    PC_USER_456 Member

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    SYD
    The fixed is about as good as I have seen from CBA 4Y. I've seen 1.88 on a higher loan size and 1.85 for staff members. This was before they re-priced 20 bp higher on Monday...

    The SVR I have seen lower.
     
    Dave Radelaide likes this.
  20. Dave Radelaide

    Dave Radelaide Well-Known Member

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    17th Mar, 2021
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    Adelaide
    Thanks PC_USER_456. I expected so re the SVR as the loan component is not that large compared to others. Great to know that the 4Y Fixed is a good rate though!
     

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