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Lending rates for success and cost effectiveness

Discussion in 'Property Finance' started by Switchtronics, 25th Oct, 2015.

  1. Switchtronics

    Switchtronics Active Member

    Joined:
    10th Oct, 2015
    Posts:
    43
    Location:
    Alice Springs
    When I first purchased my home it was an exciting and sometimes emotional experience. I would like to express what I have gained in knowledge and hope it assists others and value the feedback of everyone on here to help us all succeed.
    Knowledge is power lets get powerful.
    [​IMG]

    In searching for a good loan to kick start a portfolio I have always looked at total net cost inclusive of fees and features and lvr required. Its not always the best to just search rate, as the lowest rate may not offer the best total cost of serviceability. Alot of us consider the big 4 banks as convenience and safety for investment however there are other solutions. They can provide a viable solution for starter financing however if the package is right. In setting up the loan It's worth taking into consideration:
    1. Refinace costs
    2. Annual Fees
    3. Lvr
    4. Price Change history
    5. How property valuations are calculated
    6. Offset account
    7. Payment frequency
    8. If ppor becomes ip
    9. Advice from experienced brokers actively involved with property

    Loyalty
    When you"ve chosen your lender, loyalty doesn't always mean you get the best rate, always look regularly to see what the market is doing and keep your current lender honoust. I have experienced great service though through loyalty and the bank matched the deal I found 95% of the time providing I had proof. Research regularly and keep them honest.

    Net position
    I always focus on my total net positioning with my lenders. If the deal isnt feasible, I will always give the lender the opportunity to match and beat and over the years this has saved thousands.

    In taking this into consideration I have always found pacific mortgage group to be a solid performer ticking most boxes for options also.

    Rate 4.04%
    Offset: yes
    Lvr: 95%
    Weekly payments (y)
    Annual fee (n)

    http://widgets.canstar.com.au/widge...2&co_code=PACF&profile=Investor&amount=350000

    I have good deals with the big 4 banks offering rates as low as 4.13% on full service loans in the current market however investment loans creeping up to 4.4% for new properties


    What deals for full service loans has everyone else found out there?
    How have you structured your portfolio for future success?
     
    Last edited: 25th Oct, 2015
  2. Switchtronics

    Switchtronics Active Member

    Joined:
    10th Oct, 2015
    Posts:
    43
    Location:
    Alice Springs
    Knowledge is power
     

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