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Investment loans - rate increase

Discussion in 'Accounting & Tax' started by Martinez22, 8th Sep, 2015.

  1. Martinez22

    Martinez22 Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    121
    Location:
    Perth
    So as the banks are increasing the rates for investments loans, should I be re-financing to a lower rate or leaving it as it is? Are there any implications ?
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,162
    Location:
    Canberra and Sydney
    Depends on the bank you're with and your overall strategy.

    If the lowest possible rate is the aim of the game - then find a low option, ask your bank to match, then jump ship if they don't.

    Some banks are back to pricing IP loans BTW :)

    Cheers

    Jamie
     
  3. Redom

    Redom Mortgage Broker Business Member

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    864
    Location:
    Sydney (West) and Canberra
    Wouldn't be refinancing just because of this rate rise - as most lenders have applied it relatively uniformly (slight difference for most) and those that haven't, are likely to do so.

    Could be worth investigating as part of broader strategy/loan review though.
     
  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    18th Jun, 2015
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    Location:
    Perth WA
    Bankwest still aren't, sadly. If you're in LMI territory, moving to chase rate soon becomes an expensive exercise, but if you're not it might be worth considering.