Macquarie 3.84% P+I Investor Loan

Hello brokers,

Recently came across Macquarie offering an investor loan, principal and interest for 3.84% with an included 100% offset account.

I have been told Macquarie are hard work for the broker to finance and also difficult for equity releases, are there any other downsides to this loan?

I am not interested in equity releases and want to focus on debt reduction in the short term so it may suit my requirements, with such a low rate it would be great to knock a little principal off, currently paying 4.98% interest only.

 

@JesseT - what made you choose Macquarie. You can do better than that elsewhere.

So many other things to consider..
Did you pay LMI?
Are you with Macquarie already?
Will you consider fixed?
What your current servicing is like?

Rate is only one part of the equation.

4.98% IO is still high - have you negotiated with your current lender?

 

I did pay LMI, last purchase (this loan) was over 2 years ago and my strategy was to continue accumulating, however, I reached serviceability limit.
I have since focused on debt reduction via offset which I am perfectly fine with, currently at about 65% LVR.
This property was a 105% lend, I have a 15% purchasing expenses split with CBA for it.

No not with maquarie, this loan is choicelend, I also hold loans with CBA and ING, this is by choice as I wanted to diversify between lenders which was also recommended by my broker.

I would consider a 2 year fix.

Servicing last I checked did not allow us to purchase any further. Mainly due to paying $600pw rent and my wife running a small business but is currently on maternity leave.

Portfolio is currently >$200pw+ and we are living well beneath our means but happy to hold off from further purchasing for a couple of years.

Did negotiate with Choicelend about a year ago and they discounted, rates have since climbed slowly though.

To answer your first question, maquarie was recommended by family member who is a broker and recently financed another family member with this loan, I was shocked at an investment rate this low?
Didn’t realize there was better than 3.84% out there?

 

It's better than the rate I just got on a P&I investment loan...

 

I have one with Macquarie. I wonder if it's just a case of calling up to swap over? Will try tomorrow.

 

Check with your broker if you can move to Macquarie. If you are with Choicelend, depending on when you went with them, things have significantly changed. Choicelend went from being one of the latter lenders to go to, to being pretty much out of the picture.

The rates do look attractive. However there are so many variable between person X and person Y. Often the mis understanding is, if my friend got a certain rate, I can also. When in fact they have different life circumstances, different incomes / borrowing, different LVR's they went for. That's the general perception.

 

I have mac pi loans at just ubder 5%
Am i able tonchange over ti them without doing a new loan app

 

You can probably regurgitate to something quite a bit better with Macquarie.

Keep in mind their best offers are LVR dependant.

 

I called them up, they wouldn't give me this deal but offered variable at 4.49 and 1 year fixed at 4.24. This property has over 20% equity though so not sure if that makes a difference.

 

Perhaps see what Choicelend can offer on the P&I as well.

Their rate will come down by quite a bit if converting from IO to P&I

Cheers

Jamie

 

In general, are the rates published negotiable.
I have a few loans with mac. None high value and im changing from io var to pi fixed for 3 to 5 yrs

Seems published rates are a bit higher than average market for competitors

Do i just bite the bulllet and accept it or should i be trying to bargain hard?

 

Decided to check my rates and it appears they updated it 2 days ago:
I was planning to fix one of my loans as it was 3.88% for 3 years. Now it looks to be 4.19% for the same period. That's a huge jump. Disappointed because I was going to fix it straight after settlement next week.

 

this is was august 2017 mac rates for comparison

INTEREST ONLY
Fixed 1-2 4.79
4yrs 4.99
5yrs 5.09
var 5.51

PI
var 5.06
PI fixed 1-2 4.54
PI 3yrs 4.5
PI 4yrs 4.74
PI 5yrs 4.84

 

Sorry I should've added that the rates I'm using are P&I OO as I'm using a LOC product

 

Just checked and this rate is for an OO property not IP?

 

Probably easier to point you to my old post re: master limit
AMP - new variable rate pricing from January 8

Basically the LOC is on my PPOR. The product has no fees at all (annual etc) except when I want to make new splits but I was able to get "free splits" recently and have a total 5 splits (max 10) with a global limit similar to the AMP Master limit.I have no deductible debt so I've moved most of my split loans (deposit) to P&I so I can pay down as much as I can, so in a few years I can consolidate my splits in to the main investment loan, freeing up my LOC to go for a new deposit.

 

Currently with Connective/Macquarie so I'll consider AMP or something similar when my fixed periods are up. Thankfully no issues so far and having the rates low with no fees have been good