LOC rates cheaper than Investment mortgages

Discussion in 'Loans & Mortgage Brokers' started by S.T, 24th Aug, 2015.

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  1. S.T

    S.T Well-Known Member

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    Noticed with my two loans with BoM, LOC (Portfolio loan) and Investment home loan, that the LOC is now 0.10% better on rate.

    Something to keep in mind if getting equity out again and if they push a further rate increase to investors, might be worthwhile re-financing to a LOC product for a rate reduction, who would of thought.
     
    S.T, 24th Aug, 2015
    #1
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Were the LOC's set up as owner occ or investment?
     
    Jamie Moore, 24th Aug, 2015
    #2
  3. S.T

    S.T Well-Known Member

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    Good question, I'll have to check loan documents. Security is owner occupier though and bank knew I was asking for the LOC as a deposit for a new property but may have just dubbed it owner, think I took the loan out about 4 years ago now.
     
    S.T, 24th Aug, 2015
    #3
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Most banks are basing the rate increase on whatever loan type is registered in their system.

    Cheers

    Jamie
     
    Jamie Moore, 24th Aug, 2015
    #4
  5. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    It's almost certainly been registered as an owner occupied loan. Nice that you've got an unexpected bonus, but this isn't a way around rate increases.
     
    Peter_Tersteeg, 24th Aug, 2015
    #5
  6. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Interestingly, CBA's LoC is the same rate for both purposes, so it actually is cheaper to have an investment LOC than a SVR.
     
    Jess Peletier, 24th Aug, 2015
    #6
    S.T likes this.
  7. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    I noticed that too with CBA
     
    Marty McDonald, 25th Aug, 2015
    #7