Rate cuts to I/O Loans

Discussion in 'Investment Strategy' started by Bean27, 12th Jun, 2019.

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  1. Bean27

    Bean27 Well-Known Member

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    I am currently in the process of a refinance and my proposed rate in April was 4.44 % for an owner occupied I/O loan and under 80 % LVR. It is still being processed but I noticed on the lenders website (ING) that the rate is still the same. Has anyone else had similar experiences with the rate cut not being passed on to Interest Only lending?
     
    Bean27, 12th Jun, 2019
    #1
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Most lenders are passing on the rate cuts after 2-3 weeks. The website likely doesn't reflect the rate cut yet.
     
    Peter_Tersteeg, 12th Jun, 2019
    #2
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  3. Bean27

    Bean27 Well-Known Member

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    good point, it did say as of 25/6 on a recent property chat post. Good to know
     
    Bean27, 12th Jun, 2019
    #3
  4. Jana

    Jana Well-Known Member

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    ABC gives less than 3.8 for IO for investment. I didn’t fix yet but waiting. For owner occupier even less than 3.5 some banks. Just shop around before move on. Need to do stuff negotiation. Not worth fixing now.
     
    Jana, 12th Jun, 2019
    #4
  5. Bean27

    Bean27 Well-Known Member

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    I realise there may be cheaper rates but the structure is the most important thing to me. Interest only with offset or offsets. Maximize surplus and invest sooner
     
    Bean27, 12th Jun, 2019
    #5