CBA Rate Changes

Not that we needed further confirmation that there is no appetite for IO in this current environment, but here it is. Majors making it clear they are being pulled into line with the 30% IO limit. CBA really tightening their belt on this one. Not unexpected for anyone paying attention.

The following changes are effective from Friday 7 July 2017.


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P&I interest rates for new and existing Owner Occupied Standard Variable Home Loans will decrease by 3 basis points.

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P&I interest rates for the Extra Home Loan 2 Year Introductory Rate and Life of Loan product will decrease by 10 basis points for Owner Occupiers, and by 30 basis points for Investors.

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IO variable interest rates for new and existing Owner Occupied and Investment Home Loans will increase by 30 basis points.

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Viridian Line of Credit (VLOC) interest rates will increase by 30 basis points for new and existing customers.

 

:-( Guess it was just a matter of time before they jumped on board.

Cheers

Jamie

 

Like we haven't copped enough this year already... my LOCs are already above 5%!!

 

if they're fully drawn you might consider reverting them to a standard variable - it'll be a bit cheaper.

 

IO variable interest rates for new and existing Owner Occupied and Investment Home Loans will increase by 30 basis points.

Doesn't mention what happens to standard variable P & I investment loans? Or am i missing it?

 

P&I investment loan rates aren't changing.

 

Thanks @Peter_Tersteeg . I've changed over yesterday to P & I and rate has come down from 4.72 % to 4.65%. Plus i save myself the .30% increase next week. Luckily i have 85% in the MISA account to offset balance as now i am down to 24 years.

It's going to be one hell of a fight but i refuse to sell just yet.

 

I have fixed my final CBA IO loans to 4.34% and 4.79% respectively for 3 years.

I think the increase of IO rate is no over yet.

My equity released CBA variable loans are going to 4.74% very shortly. At this stage I will leave it for a rainy day.

 

The following changes are effective from Friday 7 July 2017.

► P&I interest rates for new and existing Owner Occupied Standard Variable Home Loans will decrease by 3 basis points.

 

I'm on the extra investment variable interest only loan. Not sure if this will be going up .3 of a percent? If so it will be sitting at 5.06% is that correct?

 

Thanks Jess, I had considered this, but they are what the taxman would consider "mixed", and with all the changes happening in IO loan world, I'm hanging onto my LOCs for as long as I can.
Their flexibility far outweighs my griping about IRs...

 

Yeah my PPOR will be debt free in less than 5 years, maybe 3-4
I like to play the reverse double whamming effect game.

when rate decrease I also double up the payment
so if I save $100 in rate I add another extra $200 repayment, it getting ridiculous cos
rate keeps dropping my repayment keep going up

after this my repayment going to be triple than the required payment

 

Hey guys, I'm in a pickle. I'm a on $400k OC IO loan at 4.07% (most recent increase was in May due to IO 3.87% -> 4.07%). The loan is fully offset. This time it will bring my loan to 4.37%. Should I just switch to PI? I got the wealth package but I feel I can probably get a loan without paying the $395 yearly at a better rate.

Plan is to using the money sitting in offset as a deposit for another house down the track, and turn this one into an investment. Don't know how long or soon down the track though...

 

evalord. Impossible to advise properly via forum, but why do you not want to pay off the loan completely ? (and i am not suggesting you should).

 

@Terry_w @evalord States property would become IP, wouldn't want to be paying it down. Funds in offset is the best place.

How long until you're planning to make the change?

Whilst the loan is fully offset, the rate has nil impact on you. Might be worthwhile review repayment type if and when loans not fully offset.

 

As for wealth package would need to consider is it benefitial to you. With no package
- $10pm offset fee
-$8pm loan service fee
So already at $216. Need to look at if you have credit card or insurances with CBA.
Also take into account what discount you're receiving, if it's good might be worthwhile staying on the package as no guarantee you can get that rate later.

 

Yes it will be increased by 30 basis points or 0.30%. What the new rate will be depends on what rate you were previously on. Just add 0.30 to your previous rate. If you log onto Netbank, it will show the new rate when it takes effect.

 

Make the most out of your wealth package, get the best of the best credit card for free normally fee around $400 with wealth package it free, you get MasterCard/Amex in one very very good reward points

depend on your usage for me I get around $500-$600 in reward each year with it so
I get more out of it than it cost me for wealth package alone

 

Ok well with the loan type that I have if I switched to P&I the rate would be 4.32% as opposed to interest only 5.06%. For the introductory two years.

 

That is probably the case, but we don't know all the relevant facts. Evalord might have another property fully paid off or another offset chocka block.