Nab just increased (they said updated) their Home Loan Rates

Apologies, I provided half info. I am with ANZ and have been thinking whether I should refinance.

That has been on the radar for sometime. It changed from IO to PI a couple of months ago. ANZ , unfortunately, asks for a full application and my wife just started working again since Jan.

 

With pricing like that, it's worth looking at what you can get with other lenders in spite of the LMI payable. For eg, if you can get a better variable rate discount and split it with a fixed rate in the low 4's, the break even on the LMI will be during the fixed term and the whole lot will revert to the discounted variable at the end of the term.

Worth doing the numbers on that one.

 

thanks Redom. I'll take anything off that rate. I'll advise with my broker...

 

I asked them, they said no, can't help.....seeing was the broker channel, would the broker do better, our loan is very small though.

 

thanks Jess. I've only got this loan with NAB...rest of them with ANZ. They didn't fund me for extra hence NAB was the option. Loan was settled in Jan16.
Two concerns I've with what you suggested but i should run the numbers i guess...1) Credit hit 2) LMI. I know by running numbers we can see if LMI is worth paying again or not. Also, this one is IO 5 yrs....not sure if I renew with split they'll give me 5yr IO with variable split...

How about asking NAB to do split on this loan...haven't checked their fixed rates. By staying with them I can avoid LMI payable and get better better split fixed rate....I'm assuming as long as you leave part of split variable there should not be problem to release equity ??

 

You can definitely fix with NAB, and you can release equity regardless - it's just a new split (variable, LOC, whatever) in addition to the existing fixed rate.

Credit hit may or may not be a big deal, your broker will be able to answer you on that. 5 yrs IO should be fine as long as servicing works.

 

@Jess Peletier how will LMI calculated in this for split loan. I mean refinancing existing full variable to split (variable/fixed) in a way you don't require bigger portion of LMI....so does it get refunded ...

 

If you stay with NAB and you were to get new equity out and it was back into LMI territory, they would calculate the full LMI payable, and credit you back what you've already paid, so essentially you just pay the difference.

 

I meant to ask what if you don't release more equity but change the full variable to half variable, half fixed....any chance of LMI refundable there? or once LMI paid it can't be refunded...

 

Oh right - no that won't be refunded.

 

There once was a time when LMI was refunded under certain circumstances. It was a long time ago, they don't do that sort of thing anymore.

 

I asked. All above I/O loans are reduced to 4.46℅.
4th loan $171K at 4.21%.

They wanted one loan with P&I to get above lower rates on all loans.

 

Did you speak to their mortgage retention unit? They seem to be able to do slightly better than their frontline unit. In my case frontline were able to do only 4.19% for $705k loan ($646k at 4.66% and 59k at 4.95% P&I 85% LVR) ..but their retention unit were able to do 4.09 fixed for 2 years..happy with the outcome.

 

Is it with NAB?

 

Yup

 

Not bad. I have only 1 with them. $365k @ 5.05% IO.
Broker asked them today for a discount and they came back with 4.81%!
Best I can get them to is 4.48% if I go 2 years Fixed.

Thoughts all?

 

Check the rate for P&I. Do the calculation and see if it is worth doing it.