Margin Loans home loan below 2%

Discussion in 'Sharemarket Investing Platforms, Tools & Services' started by Billa, 21st Apr, 2020.

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  1. Billa

    Billa Well-Known Member

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    I'm looking refinancing my home loan, a lot lenders out there are offering good rates at the lowest i've seen is ING with 2.09% fixed term rate.

    i understand no one has the crystal ball or can predict what's going to happened in future scenes, but based on the current scenario do you think interest rates will drop below 2%?

    with recently being advised my working hours going to reduced i'm trying to save where ever i can.

    my question is it wise to go with a variable rates now with no lock in contract then supposedly the rates did dropped below 2% in about a month or 2 times, then i will go with fixed rate.

    let me know what's your thought.
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    upload_2020-4-21_15-56-54.png
     
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  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    my crystal ball is greasy from hand sanitiser.

    By going variable u mitigate the risk of going fixed.

    Obv this is for owner occ debt , whats the loan size pls and why ING as a pref pls
    ?

    ta
    rolf
     
  4. Trainee

    Trainee Well-Known Member

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    You are asking whether fixed rates will go down, which is very different from variable.
     
  5. Billa

    Billa Well-Known Member

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    loan size 360K, yes it is for owner occ, ING because they offered the lowest rates?
     
  6. Billa

    Billa Well-Known Member

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    yes, will the fixed go below 2%? and should i go with variable now and hoping when fixed goes below 2% i will lock it in.
     
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Ta

    so is your sole need for the loan to be the lowest rate or do u want something with a bit more flex if actually have other needs ?

    ta
    rolf
     
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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  9. Billa

    Billa Well-Known Member

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    preferably lenders offer offset account too, when you said something bit more flexible such as?
    sorry this i my 1st year owned a property still learning a lot in this industry.

    and my LVR is below 80%.
     
  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    many of our clients use Active Debt Recycling strategies to potentially pay off their home loan more quickly and diversify their asset base

    Not suitable for many for various different reasons though.

    ta
    rolf
     
  11. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member Business Member

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    I haven't really liked ING for quite some time. They do have cheap rates, but those rates tend to get more expensive fairly quickly. When you go back later and ask for the rates to be repriced, they're not very generous.

    In essence the cheap loan doesn't stay that way.

    Granted a lot of lenders do this, but ING tend to be a fair bit worse than others in my experience.

    Also the post settlement services tends to be very clunky.

    Overall I'd pay an extra 0.1% now knowing that it would likely be more cost effective in the long run.
     
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  12. milobear

    milobear Well-Known Member

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    I would personally refinance to one of the major banks that offers rebate. Most majors offer fixed rates at 2.29%, the extra 0.2% you save with going to ING on a 360k loan will not outweigh the rebates offered. Rebate ranges from 2-4k.
     
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  13. Billa

    Billa Well-Known Member

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    do they also offer variable with rebate?
     
  14. Morgs

    Morgs Well-Known Member Business Member

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    First port of call would be making sure you service with whichever lender you're looking at. If your hours have been cut then unfortunately that will be a barrier for some.
     
  15. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member Business Member

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    ING do offer variable rates which are competitive, but no rebates. They were conservative before the crisis, now they're ultra conservative. Qualifying for a loan with them is going to be tricky.
     
  16. Lindsay_W

    Lindsay_W Well-Known Member

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    Yep just today, client has PPOR Variable sub 80% with ING = 3.71% P&I, not happy.
    Also to get the 2.09% fixed rate, you need to be on an 'Orange Advantage Package' which means you have to split the loan and keep a minimum of $30K Variable - not a huge deal for some, but for those wanting to fix the total loan it's not clear on their advertising.
     
  17. JohnPropChat

    JohnPropChat Well-Known Member

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    I think ANZ does 2.19% for 2 years. Like most things, you'll never be able to pick the bottom of the cycle. What if you fix at 1.98% in 6 months and then it drops to 1.57%? Who saw covid coming?

    Only fix for two reasons:
    1. Repayment certainty and cash flow management.
    2. Lower interest costs compared to variable (at least to begin with)