Investment Interest only rates

Discussion in 'Loans & Mortgage Brokers' started by headphonesmania, 9th Nov, 2020.

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  1. AyJay

    AyJay Member

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    I've been offered 2.69%, 3 years fixed, IO, investment, at 90 percent LVR (paying LMI, capitalised) recently for a 520k loan with ANZ

    The settlements not until January 19th 2021 (90 day long settlement), recon I should "rate lock" now to protect my rate?

    My gut says no, if anything it will probably drop abit more, but I'm still not totally sure...

    Thoughts?
     
    AyJay, 17th Nov, 2020
    #21
  2. MWI

    MWI Well-Known Member

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    If you are after lower rates then 'NO" if you are after buying time instead of lowest rates then 'YES'.
    It really depends what you wish to achieve?
    Also you could fix part of it right?
     
    MWI, 17th Nov, 2020
    #22
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  3. Terry_w

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

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    I haven't had a client rate lock for years, but I recall when you rate lock if the rate at settlement is lower you can get the lower rate. The locking only prevents it from going higher - but check with your broker.
     
    Terry_w, 17th Nov, 2020
    #23
  4. MWI

    MWI Well-Known Member

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    I just refinanced with ANZ, who took 5 months in the whole process and did not rate lock, took my chances.
     
    MWI, 18th Nov, 2020
    #24
  5. speakerscreen

    speakerscreen Member

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    Just bumping this thread up, has anyone come across good Interest only investor fixed rates?

    Seems like there have been few changes in this area compared with owner occupier P and I rates
     
    speakerscreen, 2nd Dec, 2020
    #25
  6. Leslie

    Leslie Well-Known Member

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    ANZ and west pac has the best offers I was told? I am still waiting for my mortgage broker to recommend me good deal for IO loans.
     
    Leslie, 2nd Dec, 2020
    #26
  7. essendonfan

    essendonfan Well-Known Member

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    Got a clients loan repriced IO Variable 2.69%
     
    essendonfan, 3rd Dec, 2020
    #27
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  8. SenK

    SenK Member

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    May I know the borrowing amount and which bank is offering this rate?
    I am thinking of refinancing 550k investment home.
     
    SenK, 3rd Dec, 2020
    #28
  9. Thrifty

    Thrifty Member

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    What’s the best discount below the SVR that anyone has negotiated with major banks recently for the OO and IV loans both P&I and IO?? Thanks
     
    Thrifty, 21st May, 2021
    #29
  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    many lenders now price rate for risk.

    What LVR are we talking about here pls ( at loan origination vs current)

    ta
    rolf
     
    Rolf Latham, 23rd May, 2021
    #30
  11. Thrifty

    Thrifty Member

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    Hi Rolf, thanks for your response. 80% LVR or even less infact.. I have loans with a major bank for many years now..
     
    Thrifty, 23rd May, 2021
    #31
  12. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    New lending rather than retention......... rentention pricing is most always is poorer than new lending.

    OO PI 2.4x to 2.5X PI depending on Volume
    OO IO dont bother go to a non bank like resimac at 2.7x

    INV IO 3.1x
    INV PI 2.59 with AMP or same as an intro 2 yrs with WBC

    ta
    rolf
     
    Rolf Latham, 23rd May, 2021
    #32
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  13. Thrifty

    Thrifty Member

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    Hi Rolf, thanks for your response. Are these discount below SVR that you have mentioned? So for OO PI it’s 2.4 to 2.5 below SVR and for IP IO 3.1 and PI 2.6 below SVR?? That’s some discount really.. Pls. confirm.. thanks
     
    Thrifty, 23rd May, 2021
    #33
  14. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    no

    effective rates

    the opaque pricing methodology of the majors is an issue

    end rate is what matters ?

    ta
    rolf
     
    Rolf Latham, 23rd May, 2021
    #34
  15. Athikalaka

    Athikalaka Well-Known Member

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    What lenders out there allow OwnerOcc IO rates if the purpose is investment but the security is PPOR?
    Are those type of lenders difficult to grab equity and serviceability?
     
    Athikalaka, 24th May, 2021
    #35
  16. Lindsay_W

    Lindsay_W Well-Known Member

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    Rates/products are determined by the purpose not the security
     
    Lindsay_W, 25th May, 2021
    #36
  17. Baker

    Baker Well-Known Member

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    With whom?
     
    Baker, 29th May, 2021
    #37
  18. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    wbc
    bankwest
    Citi
    ING
    MAC
    Resimac
    Firstmac
    Mac bank
    AMP


    there is also a bunch of 2.8 and 2.9s

    Suncrap
    VMA/BOQ
    Heritage
    ABL
    AMP
    Advantedge
    NAB
    STG

    Some of these are simple basic loans with no offset, and these are not the CCR ( useless concept in my view)

    As always, rate isnt the best guide for product suitability, loans aint loans

    ta
    rolf
     
    Rolf Latham, 30th May, 2021
    #38
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  19. Baker

    Baker Well-Known Member

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    Cheers for that Rolf, gives me some reference points for my next call to BankSA for a rate review on Monday.
     
    Baker, 30th May, 2021
    #39
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