Better than 5.6% from CBA, anyone?

Hi, Are there any better investment loan rates than 5.6% from CBA?

 

Yes.

There's also much better investment rates then 5.60 with CBA.

Are you currently a CBA customer? If so - ask your broker/banker to request a discount.

Cheers

Jamie

 

Yes. A recent client got a 30yr P&I loan at 3.74% on a PPOR. Even though not for an IP, but if you are paying a rate of interest with a "5" in front, you're probably paying too much.

 

Just gave a call to CBA, they said they can't give anymore discount because my LVR is 90?

 

Get your broker to do an AVM (automated valuation model), if that put's the LVR under 80% then get them to do a pricing request and send it through with the AVM - If you dealt with CBA directly you could try going back to the banker that did the loan, but I don't like your chances.

If the AVM puts the LVR >90% then you could look at getting a valuation with a different lender, if that's still >90% then consider switching to P&I or fixing.

 

Do you feel that the LVR is 90%?

Shoot me an email if you like - I can get my assistant to request a discount on your behalf. It's pro-bono - I don't pick up a trailing commission or get paid anything. I just think you're being stuffed around and should have a lower rate.

Cheers

Jamie

 

I recently got a letter from St George on an investment loan, current deal (2 loans land+build) ends June 2019 and they want me to go to a standard variable investment rate of 6.46% pa

 

So I take that as a 'No!!!!' then?

 

Even if it is, you'll likely break even on any LMI in a pretty short period with a rate like that.

 

Ambit surprised, ambit annoyed also

Big step up from 4.49%

I thought rates were going down

 

Is it possible to get RBA rate?

 

That's what the banks pay. They like to make a profit, so no, you can't get the RBA rate.

For a 90% investment loan with the CBA, you should expect a rate somewhere between 4.5% to 4.9%, depending on other certain parameters.

You could also fix the loan. I think they're offering about 4.19% at the moment (I don't have a rate chart in front of me right now).

 

Believe there is more to this.

What type of loan do you have?

Home Loan or Investment Home Loan?
Loc doc?
Principal & Interest or Interest Only?
Standard Variable or one of the following
- Economiser
- No Fee
- Rate Saver
- Extra Variable Rate
- Line of Credit
* If any of the above > request switch to Extra Home Loan (if you're over 90%)

 

Problem is that once you do have a mortgage with them they jack up their variable rates for any non fixed portion......

We have a loan with Westpac where the variable portion ($75k or about around 10% LVR) is now up over 5.66%
The fixed portion is 3.99% (around 50% LVR - locked in until 2022) its ridiculous how badly they are screwing over investors.

Once we go to all variable in 2022 i'll be moving our business elsewhere never to be seen again but I strongly suspect that between now and then with the $A where it is at the moment that i'll just sell some of our USA equities and pay all the variable portion off and they can KMA.

 

Is it possible to start our own bank and make RBA + 2%?

Accepting loans with equity more than 20 or 30%, and foreclosure after 2 months late in payments?