IO rates

Discussion in 'Loans & Mortgage Brokers' started by Harveys, 23rd Feb, 2020.

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  1. Harveys

    Harveys Well-Known Member

    Joined:
    1st May, 2017
    Posts:
    502
    Location:
    Gold coast
    Hi All


    I currently have an Investment loan that expires in a little over two years


    283k IO variable at 4.27% with a 46k split P&I variable 3.58%.


    Could I improve on these rates refinancing?


    I may be looking at a career change and potential return to study so I’m thinking refinancing IO again before my financial situation changes.


    It may scrape in at 80% lvr, maybe.

    @Property Twins
     
  2. Jess Peletier

    Jess Peletier Mortgages, Finance & Property Strategy Aust Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,372
    Location:
    Perth WA
    You can definitely improve these by refinancing. But if you have to pay LMI probs won't be worth it - see if your existing lender will come to the party first.

    It'll be worth getting your broker to order a few valuations if it's going to be tight valuation wise.
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    8,285
    Location:
    Gold Coast
    3.39 IO with Firstmac

    Subject to usual considerations - like 80 %

    90 % is a diff space

    ta
    rolf
     
  4. Peter Pakarinen

    Peter Pakarinen Member

    Joined:
    4th Mar, 2020
    Posts:
    23
    Location:
    Kogarah NSW
    May not be worth it initially however if you situation does change then you may be on the back foot for a number of years. Always set your self up for the medium to long term. See then if the calcs work.
     
  5. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    3,600
    Location:
    QLD/Australia Wide
    If you can get it to be 80% LVR then yes it would be worth it, look at the true end cash flow position.
    There are better rates out there should you wish to refinance
     

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