Loan when selling - not sure whats best move

Not sure of the best way forward as it all looks expensive, property values have also dropped so above 80% LVR

Our current rates with St George have come due for an investment property that has 2 loans on it

Currently on 5.81% , there is a switch fee of $500 per loan to change to the new rate of 3.79% fixed for 2 years or 3.89% fixed for 3 years

Loan Category Residential Investment
Interest rate type Variable rate
Interest Rate 5.81% p.a.
Repayment type Interest Only

3.79% is around $3400 per/mth

Changing to variable would lower the current rate slightly to 5.52% due to recent interest rate drops

5.52% is around $4000 per/mth

Rental income is $3'033 per/mth (then rates, insurances etc)

Would love others input or thoughts as variable would seem to be the best if looking to sell over the next Fin year or two, but emotion clouds judgement and its an expensive move, going fixed also incurs break costs

 

Why not simply ask St George for a better deal?

You're paying their standard variable rates. The rates would all drop by about 1.5% if you were under their Advantage Package, using the same variable rate products.

 

Refinance to another lender if they won't waive the $500 switching fees and give you some discounts on their variable rates. You're getting screwed by St George with those rates and the $500 switching fee per loan is more than their discharge fee! Call them up, ask to speak to a lending manager, tell them you're thinking of refinancing to another lender, if they still won't give you a better discount then speak to a broker to see what other options are available to you.

 

I think its 0.15%

 

I spoke to them about our loans recently and they mentioned 0.15%

But just looked online and saw this so i was wrong above

 

@Redwing 0.15% is the Advantage Package discount off their regular fixed rates.

1.32% is their new published standard discount that they offer for variable rates, which was introduced about a fortnight ago. They regularly do significantly better than this and I tend to expect at least 1.5% of the SVR.

If you like, call me and I'll organise pricing whilst we're on the phone.