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Best interest rates

Discussion in 'Property Finance' started by melbourne171, 9th Sep, 2016.

  1. melbourne171

    melbourne171 Well-Known Member

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  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    What's do you need the loan for?

    What are your longer term plans?

    If you're purchasing the one property with an intention to pay down debt ASAP - then shop around and get a low rate, set and forget type deal.

    If you require more flexibility - access to equity, upfront valuations, etc - then you need to consider more than just rate.

    Cheers

    Jamie
     
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  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    A couple of issues here - it's PPOR only, LVR under 80%, no offset and P&I payments only.

    For many people here, P&I payments is a deal breaker as they recognise that a) their PPOR is unlikely to be a PPOR long term and b) if it ever turns into an IP, this will cost them more in lost deductions.

    Using an IO loan with offset account for storing cash tends to give the most flexibility and long term cost effectiveness - but of course it depends on what you're hoping to do in the future. If it's simply to buy a PPOR and pay it off, low rate is important. If you want to invest and retain flexibility for the future, this loan isn't going to cut it.
     
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  4. Yson

    Yson Well-Known Member

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    Will rates go lower?
     
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    The RBA will likely reduce rates further, the economy is still sluggish.

    As to if lenders can pass it on .................

    ta
    rolf
     
  6. Redom

    Redom Mortgage Broker Business Member

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    Great rate - careful of bait advertising, some of these smaller lenders have intro rates in the fine print, bumping it up shortly after on boarding.

    Nonetheless strong rate if suitable to your longer term objectives (smash down PPOR debt with no view to turning into IP in future).
     
  7. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    I believe so but what the banks will pass on will be interesting.

    Got an email today from St George stating that discounting via pricing requests are being reduced across the board which in essence means higher rates. Westpac have also done similar and it looks like a play to the market to see if others follow. Spoke with my ANZ BDM today and they are actually increasing discounts which should realign them interest rate wise with the other big 3.