Switching banks or Staying

Hi All,

I got few Investment properties and 2.1Mil Loan amount. Currently paying the interest only invest rate 4.89% and invest P&I to 4.45%. Owner occupied rate to 3.92%. I'm with CBA.

I thought of fixed 2 years for my Investments Loans. Or look somewhere else?

Any recommendations?

MI

 

Hit up CBA for a discount first. They're usually pretty good with pricing existing loans.

Their fixed rates are sharp too - see what they can offer on those before shopping around. It might save you the hassle/costs of a refi.

Cheers

Jamie

 

your owner occupied at 3.92% did you get it recently? I am on 4.02% (initially 3.87%, it creep up) been with them for 4-5 years, right now not worth my time to chase them for a discount as with my offset I am only 20K in debt

it was over flow some months back but I deployed a bit of capital for the stock market in December.

 

Thanks Guys,

I got these rates after the request but i know Westpac is giving 2k for switching.

i got one 880K invest P&I loan ( 4.45%) and that's kill my cash flow. Remaining Loan terms are 25 years for this.

I'm planning to get a construction loan ( 600K) for above property to build the house.
So better to stay with CBA or Moving ?

MI

 

MI, based on your plans are you sure you have serviceability/borrowing capacity?
With $2.1 mill in debt, while I'm sure you may be on a good income not sure how long ago you applied for a loan but you'd probably need income of ~$400K+ to go beyond what you already have..

I'd have a chat with an investment savvy broker who has 40+ lenders to consider and possibly a multi-lender strategy i.e. do the cash out with 1 bank for one of the properties assuming you have that much equity in one of them and then do the construction with another.. Seek professional advice on structuring this as I do not know your situation etc etc...

 

I wouldn't be fixing if you are planning on further borrowings as may hinder any switching that's required

 

CBA's IO fixed rate has been great but Westpac and ANZ have done the sneaky sanchez by coming in at 4.15 and 4.18% respectively.

Jamie's suggestion is a good one however you may find borrowing capacity and equity release to be more important factors than rate where thats with CBA or outside of CBA.

 

Hi Shahin,

Correct. i got only 1.50% from CBA and switching to Westpac can make 8k plus rates benefits.
postponed my plan to build new house and looking for saving.

MI