Lowest investment IO rates

Hi,

I have approximately 5 million dollars worth of investment interest only loans with CBA but am looking to refinance somewhere else.

Can anyone advise what the lowest investment interest only rates they have heard of? I was advised bank west may offer 3.2-3.3% for investment IO standard variable. Will follow up this week but just wondering if anyone can confirm or advise another bank who may offer something as competitive whether it be standard variable or fixed. LVR is below 80%.

 

Have you spoken to CBA around what they can do? Should be able to negotiate something substantial with that loan size.

Bankwest are doing OO P&I lending at 3.2%-3.3%, I've not heard them offering INV IO rates that low.

There are a few different lenders hovering round 3.49%-3.59% INV IO fixed or variable but of course suitability would depend on a multitude of factors.

 

Variable rates

Macquarie Private Bank

70% LVR Investment P&I to 3.39% and Investment I/O to 3.59%

BOQ specialists was able to negotiate a slightly better rate ( 3.52 % 80 %LVR investment I/O ) - but these guys are not open to general public - targeting medical and dental professionals

This was for a 3.3 mil lend

you have a much larger borrowings than I do - maybe able to negotiate better deal but I found Mac bank we’re not willing to drop this rate further

Macquarie Business bank ( part of Macquarie bank ) is another option ( better rates than Macquarie private bank ) but they were unable to provide offset account linked to there home loans at this point - they said they hoped to be able to provide this in the near future

If anyone has heard of a better rate - I would like to hear about it

Just out of curiosity- what are you currently paying with CBA ?

 

If you give them your PPOR as well , AMP will give you 3.29% variable IO or 3.09 fixed IO 2 years

 

wow that is a great rate but is that rate also for investment I/O or just PPOR lending ?

 

If you give them your PPOR as well,AMP will give you 3.29% variable IO or 3.09 fixed IO 2 years on INV lending

 

Just called AMP those rates are only for P and I. She triple checked.

 

You just ruined my day

 

Truth hurts

 

No - I’ve just written them . But you know what , really should be taking P&I anyway at those rates... there’s never going to be a better opportunity to pay down some debt - and if we get another couple of rate cuts that variable rate will get below 3 . Keeping IO on your books only hurts servicing and eventually when the refinancing opportunities run out you’ll be reverting to P&I over 20 or 25 remaining years ...

 

Sorry - i'm a little bit confused - the rates you mentioned above for investment I/O - are they available to the public if you give them your PPOR as well ?

 

And here's Firstmac's latest... 3.39% IO

 

I would think $5M would be too high an exposure for many lenders including Firstmac. Only majors and their subs would consider.

AMP also have an investor limit on the number of properties (5 max I think from memory?) as do Macquarie so that might kick you out there.

You might be best to split between a couple of lenders for risk mitigation purposes. Resimac would do 3.41% IO variable if the security is OO regardless of purpose. Then you'd be looking at mid to high 3's at best Id say.

 

Are these rates for new customers only?

 

My mistake. Sorry.

For PPOR P&I - 3.29% variable
For PPOR IO - 3.69% variable
If they have your PPOR security they will offer you exactly the same rates for INV securities
So if you went P&I on your INV properties you'd get 3.29% If you went IO you'd get 3.69%

Firstmac's new offer of 3.39% variable for Investment IO to 80% LVR looks very good.

As I have said previously, right now is a fantastic time - the best time every if we are being honest - to get IO loans across to P&I and start paying down debt. Ultimately everyone will have to do it one day anyway . The sooner you go, the less the pain lower . It is never going to be easier than it is now, to make the change. The repayment gap between the IO rates people were paying just 2 months ago and todays best P&I deals is now quite small - especially if you refinance to a new 30 year loan term.

 

That's the way all lenders tend to do things, yes.... but existing customers can always call and ask

 

That is good rate for IO Loans. I am paying 3.41 for P & I Now. Wish I could refinance

 

Thanks for the clarification

looks like that firstmac offer of 3.39% I/O is without offset account which would rule it out for me - is that right ?

 

Looks like Firstmac’s assuming an Oct rate cut with their rate move and going early (good move being first leader to bring in business). They’re not usually this low relative to market (and WBC group drop on assessment rate again).