Investment Rate - 5.44%

Discussion in 'Loans & Mortgage Brokers' started by Investor_84, 9th Apr, 2023.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Investor_84

    Investor_84 Well-Known Member

    Joined:
    21st Dec, 2017
    Posts:
    78
    Location:
    Greenacre, NSW
    Hi

    I have over 5 million in loans and was wondering what the best rate out there is for either P&I or IO. Don’t mind the LVR can be as low as 50%.

    I have been offered 5.44% investor p&i with westpac. Am aware there are smaller banks such as uno loans and others that offer a lower rate but they don’t offer loans for “professional investors”. This is considered to be anyone who has multiple loans or large loans.

    So before I choose Westpac is anyone aware of any other rate that offers professional investors with a better rate?
     
  2. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,419
    Location:
    Australia wide
    That is something you need credit advice on. Any broker answering this question would be breaching the law potentially
     
  3. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

    Joined:
    23rd Aug, 2015
    Posts:
    1,527
    Location:
    Bella Vista
    I doubt youre getting better pricing because they are categorising you as a "professional investor".

    Pricing majority of the time is based on loan amount and LVR, based on what you noted it is pretty inline with other major lenders.
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,520
    Location:
    Gold Coast (Australia Wide)
    By Pro Investor, I assume that your rental income exceeds your earnt income from PAYG or self employment ?

    At that level of lending, if there are a few securities, id look to split that between a couple of lenders.

    At that level the deemed concentrations risk, or lender Total Aggregate exposure means that it would usually need senior credit sign off, which would also apply.

    WBC also prices on the number of loan splits, ie the more loans and securities one has, the lower the discount. This often results in the suggestion that the portfolio be cross collateralised. At 50 % lvr thats not likely to be an issue, but will result in new vals etc across the potfolio when you want to sell something.

    Yep, more work to run sole secured applications, but can save lot of hassles down the track.

    ta
    rolf
     
  5. southern-investor

    southern-investor Well-Known Member

    Joined:
    19th Apr, 2022
    Posts:
    873
    Location:
    Brisbane
    5.44% is not bad these days. The cheapest I managed to get is 5.35% with loans.com.au and that is inclusive of all the rises.

    Next best I got is with
    5.54% P&I with ING.
    5.56% P&I with Suncorp.
    5.68% P&I with Aussie but loan is with Mac Bank

    My Pepper loans are ripping me a new one though. Dont ever use them.

    I've still got 10 loans with CBA locked in at 2.29% until July 2024 so by then interest rates will be on the way down. But I think CBA would be around the 5.5% mark.

    All loans are 50% or lower LVR for the above. My CBA loans are even lower at like 30-40% LVR so maybe they will give you some special rate if your LVR is very low.
     
    Redom likes this.
  6. Investor_84

    Investor_84 Well-Known Member

    Joined:
    21st Dec, 2017
    Posts:
    78
    Location:
    Greenacre, NSW
    Hi sorry maybe I didnt make it clear. The rate I was offered wasn’t because I was a professional investor. I was just pointing that out just to ensure this discussion is only for banks that would service someone with multiple loans or as Rolf explained earlier, it’s because my rental income exceeds my PAYG.
     
  7. Investor_84

    Investor_84 Well-Known Member

    Joined:
    21st Dec, 2017
    Posts:
    78
    Location:
    Greenacre, NSW
    Hi

    With loans.com.au do they service someone whose rental income exceeds their PAYG?
     
    southern-investor likes this.
  8. southern-investor

    southern-investor Well-Known Member

    Joined:
    19th Apr, 2022
    Posts:
    873
    Location:
    Brisbane
    Probably. As long as you meet their serviceability I dont see why not. If your rental income exceeds your PAYG thats a good thing.

    Are you asking because you have serviceability/cashflow issues or something else? I would think they are more interested in your cashflow situation as in how much are you adding on top of the rent your getting to hold the properties. If your massively positive geared there should be no issues going with any bank.
     
    Whitecat likes this.
  9. Investor_84

    Investor_84 Well-Known Member

    Joined:
    21st Dec, 2017
    Posts:
    78
    Location:
    Greenacre, NSW
    No issues. Just looking to refinance once my current fixed rates finish in the next month or so.
     
  10. Ruby Tuesday

    Ruby Tuesday Well-Known Member

    Joined:
    8th Mar, 2021
    Posts:
    1,428
    Location:
    Danistan
    Doubt it , I applied for a loan with them the whole process was weird, idiotic and an utter waste of time. They are very limited in what they lend for. I think at the time the most they would lend was like 1.2m, you needed to have a job and cash flow didnt count for much they had trouble understanding it, the application form didnt have enough room to put any details. Wouldnt do investment loans or LOC's. Wouldnt accept letter from accountant for service ability. They are for simple basic loans . Better to go to a good broker or direct to a big 4.
     
    Last edited: 9th Apr, 2023
  11. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    3,970
    Location:
    Canberra, Brisbane and Sunshine Coast
    You’ve got a low rate with a decent lender - you might get marginally cheaper with online/no frill lenders but you’ll likely sacrifice on something else (subpar product, less likely to review future rate discount request, ongoing service might not be as good). Rate isn’t the be all and end all!

    cheers

    Jamie
     
    Whitecat likes this.
  12. Whitecat

    Whitecat Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    4,300
    Location:
    Sydney
    Yeah I'm paying like 2% more with pepper than loans.com.au luckily I have a good size offset against that loan but I still need to try and do something about it