CBA Investment IO rate

Quite a few things to consider here...

A 0.1% difference doesn't actually add up to many dollars in your pocket. $100 per annum for every $100k you borrow.

Also consider the cost of moving. From the CBA to WPC that would cost about $900 - $1100. There is the $2000 incentive to refinance though, so you would come out ahead.

Is there a strategic benefit to moving lenders? WPC has generally worse serviceability than CBA, but there are instances where you can get a serviceability boost by using the right lender at the right time.

Then there's the question of can you actually qualify with other lenders? Comparing rates is a moot point if the other lenders won't approve the application.

I really can't give you an answer without knowing everything about your financial circumstances and your goals. That's what brokers do.

 

Thanks peter for pointing out some of the areas to consider. Will follow up with my broker regarding serviceability with suncorp or westpac.

 

Agree, sounds like the CBA has it rated as a PPOR as that's the rate I'm on for my PPOR IO with my IP IO being higher at 4.89%.

I know they aren't great rate but waiting for a relaxation of the serviceably criteria before I refinance or they may make be pay down some of my debt from the $300K in the offset which I'm not too keen about.