if your paying 5%

Discussion in 'Loans & Mortgage Brokers' started by MyDarlinghurst, 30th Jan, 2018.

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  1. MyDarlinghurst

    MyDarlinghurst Well-Known Member

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    if your paying 5% or more on your IP are u being ripped off?

    Watching Foxtels money channel the guy said it should be under 4% right now !
     
  2. Invest_noob

    Invest_noob Well-Known Member

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    What about 4.90% 10 years IO? Am I being ripped off? :(
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Wallet Wizard to the rescue.
     
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    On your IP or on the investment loans used to buy the IP?

    interest rates should probably be around mid 4s for an IP loan.
     
  5. House

    House Well-Known Member

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    Below 4% for an IP?! Did he actually say who that was with?
     
  6. Air_Bender

    Air_Bender Well-Known Member

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    Currently paying 4.51%, IO, fixed for 5 years.
     
  7. MyDarlinghurst

    MyDarlinghurst Well-Known Member

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    yes,cant see any sense in paying IO in todays market,
    maybe 15 years ago but not now.
     
  8. SouthBoy

    SouthBoy Well-Known Member

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    My IPs are still on variable IO, paying 5.01% with NAB and 4.85% with WBC. My banks assure me, I am getting the best rates.
     
  9. GetRIDof5CENTpiece

    GetRIDof5CENTpiece Well-Known Member

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    CBA P&I IP loan @ 4.35%

    Not sure how you get under 4%... dare say it is impossible.
     
  10. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    It's not impossible but does require a few things - low LVR, not fussy on lender, set and forget type thing where you're not going to want big cash out etc...
    It's unlikely with a big 4.
     
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  11. Lindsay_W

    Lindsay_W Well-Known Member

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    Not impossible with P&I repayments but slim pickings
    Out of 30 lenders on my panel, 6 offer investment rates under 4% for loan amounts >$250K
    1 - 3.89% Variable P&I, $1000 application fee, 80% LVR
    2 - 3.89% Variable P&I, $876 application fee, 90% LVR
    3 - 3.98% 2 yr Fixed P&I, $250 application fee, 90% LVR
    4- 3.89% Variable P&I, $900 application fee, 80% LVR
    5 - 3.99% Variable P&I, $250 application fee, 80% LVR
    6 - 3.99% 3 yr Fixed P&I, $950 application fee, 80% LVR
     
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  12. Corey Batt

    Corey Batt Well-Known Member

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    Some basic rules of thumb:

    P&I Investment Loans: <4% (3.88-3.99%)
    IO Investment Loans: 4.09-4.5% (dependent on whether you go variable/fixed etc)

    There are a touch cheaper/more expensive options depending on what you qualify for and what you're willing to sacrifice in terms of future ability to draw equity/features/lender trustworthiness for long term interest rate savings.
     
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  13. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    One can get mortgage rates for less than 3 %

    ta
    rolf
     
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  14. Chill2205

    Chill2205 Well-Known Member

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    Surely this all depends on your cashflow?
    On a 500k loan:
    4% P&I would have around $2390 monthly repayments
    5% IO would have around $2080 monthly repayments
     
  15. Lindsay_W

    Lindsay_W Well-Known Member

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    Sign me up ! :)
     
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  16. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I have many clients with interest free loans!
     
  17. spludgey

    spludgey Well-Known Member

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    Looks like St George will offer me 3.94% P&I 2 years fixed on a number of loans.
     
  18. Jamesaurus

    Jamesaurus Well-Known Member

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    That sounds like a good deal- whats the application fee though? is it advertised?
     
  19. spludgey

    spludgey Well-Known Member

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    I'm refinancing existing st George loans, so no applicant fees.
    The advertised rate is 3.99%, so I'm not getting as much off as I have in the past, but it's the best IP rate I've ever had, so I'm not complaining.
     
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  20. GetRIDof5CENTpiece

    GetRIDof5CENTpiece Well-Known Member

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    Damnnn that's seriously good. Mine isn't fixed so I dare say I could shave a bit off going fixed but the 4.35% is on a seven digit loan too :(

    BTW your IP rate is almost as good as my PPOR rate (3.85%) - again variable not fixed.