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The 4% Portfolio.

Discussion in 'Property Finance' started by Sonamic, 3rd Aug, 2016.

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  1. Sonamic

    Sonamic Well-Known Member

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    With the latest RBA cut to 1.5% and banks only passing some of this on, for now. What are everyone's thoughts on getting an entire portfolio down to 4% or better? This includes a mix of both the PPOR and IP's.

    Obviously rates are not the be all and end all when seeking out suitable lenders, but with this latest cut does anyone think we'll see 3.5% on OO, 3.75% on Investment with 4% on IO Investment?
     
    MTR likes this.
  2. spludgey

    spludgey Well-Known Member

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    Why would banks charge a 25 basis point premium for IO?
     
  3. Redom

    Redom Mortgage Broker Business Member

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    Yes its doable i think, will depend on the lenders your with, LVRs, loan amounts etc.

    As an example, for CBA loans done in the last 6 months of decent loan sizes (750k+), 3.95-4% O/O and 4.12% Inv is not uncommon. That will now fall to 3.82/3.99% post rate cut.

    In recent months, fixed rate options have been sub 4% for both O/O and Investment.

    Getting an O/O 3.5% will likely be the online lender rates owner occupier P/I sub 80% deals no offset - some of the smaller lenders have passed on the rate cut in full for example (Bank of Sydney).
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    cos they can ........... and do

    ta

    rolf
     
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  5. Sonamic

    Sonamic Well-Known Member

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    Quite often.
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    To maximise profits.
     
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  7. strongy1986

    strongy1986 Well-Known Member

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    They know investors will pay the extra .25% to stay interest only so they dont damage their servicing criteria
    And those on interest only who arent investors cant afford the p and i payment so have no option but to pay a bit extra on interest only

    And who would change lenders for .25%?

    They know how to play their cards
     
  8. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Fixed rate decreases will be followed by variable rate decreases. 0% here we come.
     
  9. Azazel

    Azazel Well-Known Member

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    Oh dear.
    That wouldn't be very pleasant.
     
  10. Simon Moore

    Simon Moore Mortgage Broker - Melbourne Business Member

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    ME is currently (before the rate drop) 3.84% OO and 4.04% IP IO for loans >$700,000. That with 5 years IO and unlimited cash out to 85%.
     
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  11. Azazel

    Azazel Well-Known Member

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    Gosh, that's pretty darn close.
    Surely you could get a haggle on the remainder.
     
  12. MTR

    MTR Well-Known Member Premium Member

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    Nice:)
     
  13. Sonamic

    Sonamic Well-Known Member

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    Wait a week or two then when fresh Fixed Rates come out.
    Almost time to strike. . . .