Lowest investment IO rates

Discussion in 'Loans & Mortgage Brokers' started by Investor_84, 22nd Sep, 2019.

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  1. jyeung80

    jyeung80 Well-Known Member

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    Also wanting to know the answer to this. Does anyone know?
     
    jyeung80, 24th Sep, 2019
    #21
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    no it does not have offset for tax purposes

    nor are these types of lenders offset per se.

    They are redraw offset, the primary difference is that Bank offset has a fed gov guarantee to 250 k I recall, non banks do not

    Further, clarify with your tax adviser as to the use of such products as to tax implications - dont assume, i have seen many clients get unstuck with assumptions like that.


    ta
    rolf
     
    Rolf Latham, 24th Sep, 2019
    #22
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  3. euro73

    euro73 Well-Known Member Business Member

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    AMP are changing some of the parameters on the 9th of October, FYI

    The requirement for 25% of the total loan to be O/Occ is changing to a requirement that 50% of the total loan be O/Occ.

    Screenshot 2019-09-27 10.44.07.png
     
    euro73, 27th Sep, 2019
    #23
  4. jyeung80

    jyeung80 Well-Known Member

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    AMP gave me a discount from 3.78 to 3.54 a couple of days before they announced their rate cut. Not sure if they'll pass on another 0.15.
     
    jyeung80, 5th Oct, 2019
    #24
  5. Arcticfire

    Arcticfire Well-Known Member

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    With the last rate cut - Macquaire Bank are passing on 0.15% discount to there variable rate

    This brings down there 70% LVR investment I/O rate from 3.59% to 3.44%
    investment P/I rate from 3.39% to 3.24 %
     
    Arcticfire, 6th Oct, 2019
    #25
  6. Arcticfire

    Arcticfire Well-Known Member

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    That's a good rate - lets see if they pass on the rate cut
     
    Arcticfire, 6th Oct, 2019
    #26
  7. Arcticfire

    Arcticfire Well-Known Member

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    I noticed BOQ have passed on the full 0.25% rate cut for there Interest only rates - I wonder what deal you can get with them now on I/O
     
    Arcticfire, 6th Oct, 2019
    #27
  8. ChrisP73

    ChrisP73 Well-Known Member

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    @jyeung80 That's a pretty decent discount. Would you mind sharing which product and the loan amount?
     
    ChrisP73, 7th Oct, 2019
    #28
  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    if u can get a loan approved you mean ?
    ta
    rolf
     
    Rolf Latham, 10th Oct, 2019
    #29
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  10. Scyth

    Scyth Active Member

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    Any indication whether CBA will drop their IO fixed rates as well?
     
    Scyth, 10th Oct, 2019
    #30
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  11. TylerJamesson

    TylerJamesson Well-Known Member

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    CBA investment rate for fixed 2/3 yr is currently 3.79% interest only according to my broker.
    I'm in the market to refinance.

    Looking for CBA to come down to 3.5ish
     
    TylerJamesson, 10th Oct, 2019
    #31
  12. Scyth

    Scyth Active Member

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    CBA updated their interest rate pdf report but still no change to the fixed rates :(
     
    Scyth, 25th Oct, 2019
    #32
  13. Morgs

    Morgs Well-Known Member Business Member

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    Any reason why CBA specifically? Westpac competitive in that space at the moment.
     
    Morgs, 25th Oct, 2019
    #33
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  14. TylerJamesson

    TylerJamesson Well-Known Member

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    I’ve just moved a single block of 4 units to CBA interest only at 3.89% variable.

    Might consider switching to fixed if they get to mid 3’s
     
    TylerJamesson, 25th Oct, 2019
    #34
  15. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    A change in variable rates does not automatically mean a change in fixed rates. There's certainly an economic relationship between the two, but not a direct or immediate relationship.
     
    Peter_Tersteeg, 25th Oct, 2019
    #35
  16. Scyth

    Scyth Active Member

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    The other big 3 have dropped their fixed rates since the second rate cut , I was expecting CBA to come in line with the rest of the gang.
     
    Scyth, 25th Oct, 2019
    #36
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  17. Scyth

    Scyth Active Member

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    Stuck with them as moving will trigger LMI due to high LVR.
     
    Scyth, 25th Oct, 2019
    #37
  18. ChrisP73

    ChrisP73 Well-Known Member

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    1.75% discount off the SVR for investment IO

    That’s very good for CBA. Did you negotiate yourself or use a broker? Is that under the wealth package?
     
    ChrisP73, 25th Oct, 2019
    #38
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  19. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    CBA are getting a little more price aggressive in recent weeks..........

    ta
    rolf
     
    Rolf Latham, 26th Oct, 2019
    #39
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  20. TylerJamesson

    TylerJamesson Well-Known Member

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    Through my broker (who is ex-CBA). I told him to pretty aggressive, it was a $1.X loan for x4 dwellings I was refinancing with them.
     
    TylerJamesson, 26th Oct, 2019
    #40
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