CBA and ANZ offering one year fixed rates with full offset

This is the response I received from my bank manager ‘
When considering fixed rate options, you should be aware that fixes rate loans do have some limitations, primarily the potential for an Early Repayment Adjustment to be charged in the event of:

• Repaying your loan in full
• Making more than $10,000 in additional repayments per fixed term year
• Switching to a variable rate.

Fixed rate loans also cannot be offset.’

 

Whats the best rate they are offering variable with 100%offset.

 

What I like about fixed rates is the ability to pre pay the next whole years worth on the last working day of June and also receive some interest rate discount in the process. Of course there are disadvantages to doing this but if you've had a great year and you only have variable rate loans then it not an option anyway.

 

This is only possible with the 1 year interest in advanced fixed loan

 

Please see below the record low Fixed Rate Home Loan options CBA is currently offering (advertised on our website):


Product

Owner Occupied* (p.a.)

Investment* (p.a.)

Principal and Interest Fixed Rates

1 Year Fixed Rate

2.29%


2.69%


2 Year Fixed Rate

2.29%


2.69%


3 Year Fixed Rate

2.29%


2.69%


4 Year Fixed Rate

2.99%


3.09%


5 Year Fixed Rate

2.99%


3.09%


Interest Only Fixed Rates

1 Year Fixed Rate

3.39%


2.89%


2 Year Fixed Rate

3.39%


2.89%


3 Year Fixed Rate

3.39%


2.89%


4 Year Fixed Rate

3.79%


3.29%


5 Year Fixed Rate

3.79%


3.29%

 

Thanks for showing the record low "fixed" rates but I was asking for best Variable rate with full offset and with 60% lvr?

 

A little more info on the specifics would be warranted, but Macquarie is quite competitive.

Hard to give a comprehensive answer because variable rates usually need to be negotiated an the outcome can depend on your circumstances.

 

You will need to check with either your broker or call the bank. My rate with CBA variable full offset is 3.3% PI investment and I think 2.9% PI OO. You might get better rate depending on loan amount and with low LVR

 

How much do specifics count for in determining the lowest rate?
We have no debt both work, no credit cards decent savings would offer 33% deposit on a 550k loan. Although after variable we would pay 5k min a month and then savings into offset.
Also any advice on what to have ready when we see broker i.e 4 or 5 weeks worth of payslips last few years group certs?

 

If I call bank will they give me this info over the phone?

 

Rather than start with rates, I prefer to figure out what people will actually qualify for, then give some consideration to the longer term goals.

Generally I start the process with getting a fact find and a recent payslip. Give a broker what they ask for, not what you think they want because you just inundate them with paperwork, creating more effort for everyone.

 

Thanks . Last thing I want to do is inundate them with paperwork, I want to make it as easy as possible for them hence why I asked what things I should have ready, but also get the absolute best deal I can.

 

They might not right away because I think they need to assess your income, serviceability etc.. but it would start the process to find out your rate

 

You won't get the best rates over the phone with a general enquiry. You'll get the regular rates. For example Westpac's standard discount is 1.3% of the SVR. In certain circumstances we're able to negotiate between 1.5% - 1.9% off the SVR, but it does depend on the specifics of the client and the deal.

Quoting rates is not as simple as it sounds, which is why I prefer not to do it at all. I still want you to have the best rates (it makes no difference to how much brokers are paid, so all the better to make you happy with cheap rates), but there's a lot of things that go into a good recommendation of both the right lender and the right product.

 

We just refinanced to ANZ with one of our fixed loans and they’re giving us $4k in cash once the loan settles. Saw my broker on Friday and he said it’s now $3k and they’re super slow in processing, but something to consider if you’re thinking of switching to ANZ.

 

Which product from CBA is that?
Currently, I'm on:

Loan type: Extra Investment Home Loan - $4 annually.
Interest rate 3.27%
Redraw facility, not Offset.​

 

Unfortunately I can confirm I got word from my banker that CBA at this point do not offer there fixed loans with a offset ( my broker was incorrect ) At this point ANZ is the only major bank that offer a offset facility with one year fixed rates - which seems like a good deal to me - just wished the other majors offer it

Those rates are correct for there one year fixed rate - just no offset

 

Adelaide Bank offer fixed with offsets too

 

For the longest time the CBA did offer a partial offset with their fixed loans. They may have removed this feature because it wasn't particularly effective given only a small percentage of the offset balance was counted against the loan.

I don't recall anyone ever using the because it was far more cost effective to the loan and keep some as variable with a full offset account instead.

Adelaide Bank definitely still advertises an offset account on fixed loans. Heritage Bank used to, but I don't think they still do.

 

2.39% fixed interest loan? I want to double check this is for your personal residence and not an investment property loan?