I've got 2.5 years left on my IO NAB loan. With rates on the up the 3 year fixed P&I looks very attractive.
Matching Westpac - big incentives for P&I INV loans at present. You can have 1%+ lower P&I fixed rates than INV I/O variable rates in some circumstances.
2-3 year owner occupier rates seem great. Is there perhaps a drop in rate coming for owner occupier on the horizon?
Yep but cant you find better 5 year fixed P+I investor rates than 4.79%? Seems kind of high......even with the recent APRA changes. Eg my last IP in Feb 2017 was 3.99%
Comp loans are useful to compare a carrot to an orange because they are the same colour, The theory of comp rates was to make things simpler for the consumer................ I mean the gov is supposed to tell us the truth ta rolf
It's just that the rate in RR's post for 2 years seemed low, but the comparison rate was right in with the other rates. I wonder if there was a typo somewhere.
I think the 3.88% fixed for 2 years for P&I Investment Loan is correct. I was wondering in the next 1-3 years we will see occasionally banks open a small window for these to gain market share?
Comp rates account for all the fees and the rate projection over 25 years and a nominal loan amount of $150,000. Fixed rates revert to svr so the comp rate is 22 years of svr mostly. Or mostly as @Rolf Latham says, hokum.
Well said, guys. My 2c: If we're comparing loans based on their entire duration, comparison rate seems to me like the best way to compare them. Unless someone has a better idea how to do it? To compare loans for a shorter time (say 2-3 years) needs to be done manual (and it's a risky strategy these days anyway. Who knows if you'll be able to refinance after 2-3 years) and it does make the 'comparison rate' useless. The process however is easy when comparing loan 1 to loan 2, but to compare multiple loans at a glance and decide who's cheaper for short term? Ouch.