ING, Macquarie, Virgin cut interest-only home loan rates

ING, Macquarie, Virgin cut interest-only home loan rates

Hi does anyone know if this will apply to existing loans? I have a loan with Macquarie at 5.09% investor interest only.

 

No there hasn't been drops in SVR's (which means existing borrowers), but instead higher discounts for IO lending for new borrowers.

You could call Macq though and request a sharper rate, its possible they'll do it in this environment. Let them know that competitors are cutting IO rates and see if they'll match their new lending rates.

 

Thanks Redom, will try calling them

 

"[ING] is raising fixed rates on principal and interest, interest-only loans by between 8 basis points for a one year loan to 41 basis points for a five year fix."

Dammit! Last time I checked, the 5 year fixed rate was 4.49%, now 4.90% p.a. That sucks!

 

There's significant price variance in investment loans at this time - if you still have sufficient borrowing capacity and Macquarie won't come to play ball review your options, as you would be looking at the low 4's for an IO loan in comparison.

 

Low 4's? Which lender? The best I heard for variable IO is ING's 4.59%.

 

4.09-4.29% with a few different lenders - some of the rates are only available through select brokers/groups.

I'm not in the business of naming random lenders based purely on rate to strangers on the internet though who might not even qualify for it without checking.

 

Hmmm...I like ING's service so might just go with their IO loans...

 

Oh....then I need to think twice.

 

Im currently on a bad 5.29% io with mac

I asked for fixed rates pi
And got this

1 year 4.09%

2 years 4.29%

3 years 4.49%

4 years 4.59%

5 years 4.69%

Im looking to fix for 3 yrs. Id even be willing to do 5 but the rate difference doesnt seem worth it.

The rates seem quite high given that im paying rather high variable rate.

What do ypu experts recomend i do?
Call up and push them harder?
Refinance might be a bit too hard

 

I can and will investigate. But im not sure 6 more applications is going to work

 

And it seems ANZ have removed a few more chairs from the musical chairs game called IO lending.

Tighter rules for guarantor loans and gifted deposits (No IO allowed) and much tougher servicing otherwise. Basically their view is any IO request will be treated as a "credit critical event." IP or OO.

That means the bank will apply heightened scrutiny to the financial circumstances of the customers seeking to make such changes, and their reasons for doing so. All IO requests = Full income verification request from March onwards

 

yes pretty much, also my financial position has weakened a little over recent times
decisions decisions decisions,
I might give them a call to see if htye can do a lot better if im fixing 6 loans

 

what do you mean by that? as in people with high LVRs, or multiple IPS or multiple low price IPs, they simply cut them off?