Switching banks or Staying

Discussion in 'Loans & Mortgage Brokers' started by MelbInvester, 31st Jan, 2019.

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  1. MelbInvester

    MelbInvester Well-Known Member

    Joined:
    25th Jun, 2015
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    Location:
    Melbourne
    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
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Location:
    Canberra, Brisbane and Sunshine Coast
    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
     
    Lindsay_W likes this.
  3. PandS

    PandS Well-Known Member

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    NSW
    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.
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    2 year fixed IO with CBA is hard to beat, as is the 3

    But.......................... how much longer are the existing loan terms ?

    There are OTHER sensible and logical reasons often to move and diversify

    ta
    rolf
     
  5. MelbInvester

    MelbInvester Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
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    Location:
    Melbourne
    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
     
    jefn89 likes this.
  6. jefn89

    jefn89 Well-Known Member

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    Location:
    Sydney
    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...
     
  7. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    Location:
    Sydney North Shore and Norther beaches
    I wouldn't be fixing if you are planning on further borrowings as may hinder any switching that's required
     
    jefn89 likes this.
  8. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Location:
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    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.
     
  9. MelbInvester

    MelbInvester Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    82
    Location:
    Melbourne
    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