CBA and Westpac cut fixed investment interests rates

CBA cuts fixed rates for property investors

Quick check and I can see fixed investment 2 year loans at 3.89%

Which equals the .5% they were talking about

I presume the rest will follow,

Your thoughts on the big rate cut?

 

I had a look and the 3.89% for 2 year fixed looks like it's for OO P&I with the package. The investment 2 year fixed is 4.09% and 4.19% for P&I - IO respectively.

What i would like to know is if my settlement took place today and the rates document says Effective as at 2 March 2018 and I don't have a rate lock, will they lower it? My contract says 0.35% below the reference interest rate, currently 4.04%. Does this mean since it changed on the day of settlement it will now be 3.99%?

Source

 

Might be some confusion on the 3.89% for investment. This is for the OO P&I 2 year intro product. The 0.5% reduction is on the 2 year fixed rate for IO INV which is now 4.19% under their package.
Doesn't really mean the rest of the lenders will follow. Just means they have an appetite for this space at this point in time. My thoughts are that they want to increase their business in this space and have price accordingly.

 

4.19% ÌO fixed for 2 years. I'd take that.

 

CBA cut, Westpac increased.

Westpac had cut a few months ago, were running a promo and have now had service levels been hit. Essentially some of the business that was flowing to Westpac last week will now flow to CBA.

 

@Rolf Latham might need to chat please

 

From memory. Once we fix and the fixed period expires, it reverts back to original variable discount. Is that correct?

 

Depends on the lender - CBA will revert to the previous discount rate.

 

Looks like my NetBank tells me my rate got locked at 3.99% (Investor P&I 3 Yr Fixed) so that answers my question (Rate updated on day of settlement - Rate dropped to match the change)

 

I just check again

New westpac investment P&I are 3.89 for 2 years and 3.99 3 years

Fixed interest rates | Westpac

 

Oh you're referring to Westpac. You didn't mention that in your OP body. The link sort of focused on CBA but your title has CBA & Westpac... got ya.

 

Your kidding me. I just got a 2 year investment fixed with CBA at 4.69

 

Wooohooo mb got me 4.14 % IR. I didn’t miss out!!

 

ANZ offered me 4.78% for 2yr fixed IO investment

Maybe they'll move this friday and I'll call their retentions.

 

Hey why don’t you tell ANZ that you will refinance with CBA. Tell them you can get 4.14 with CBA. They’ll match them! Bluff

 

I did but they said they don't match! They did say that if they do follow it will be on a Friday so I'll wait until then.

Sorry that 4.78% was for my variable. I'm not fixed atm.

 

Oh that’s a pity but what if you pretended to switch to cba and bluff them. I’ve heard it can work. Maybe that would work? Or you could just refinance with cba and get the better deal. It must get be advantageous in other ways too.

 

Lots of lenders these days will call your bluff until you drop a signed discharge form AND the other financial institution books in settlement.

 

I signed some clients up today, 2yr fixed 3.59% p&i OO.
We got the discount a couple of weeks ago .6%.
The discount was so big because they were matching others ‘end’ rate of 3.88ish.

Then they cut rates, but are standing by their previous discount.
Great timing in this clients case.

 

And sometimes they'll just let you walk. It's a misconception that they'll (always) do anything to keep you.

Have experienced this first hand. I tried to call their bluff, then they called mine lol.