The best Interest only rate with major or Non major banks

Discussion in 'Loans & Mortgage Brokers' started by Pakz, 17th Jan, 2019.

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  1. Pakz

    Pakz New Member

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    Hi Everyone,

    I am thinking about refinancing to cash out approx 150K and use it towards new IP.
    I;m currently with BOM.

    I was wondering whats the best Interest only rate in the market both variable or 2 years fixed ? and which banks ?

    I'm prefer major banks and the ones that provide good incentives to move to them...
     
    Pakz, 17th Jan, 2019
    #1
  2. Ian87

    Ian87 Well-Known Member

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    CommBank do 4.19 for 3 last time I checked, presume it would be the same or less for for 2.
     
    Ian87, 17th Jan, 2019
    #2
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  3. Redom

    Redom Mortgage Broker Business Plus Member

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    Early 4% range, 2k rebates. Majors all similar, CBA a touch sharper. Westpac useful if you have multiple properties (rebate multiplied).

    Variable rates are higher, almost across the board vs 2 year fixed product.
     
    Redom, 17th Jan, 2019
    #3
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  4. Bendigus

    Bendigus Well-Known Member

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    The advertised rates for IO Investor the following Non-banks are:

    3.99% TicToc
    4.15% Homestar Finance
    4.19% FreedomLend


    Several smaller banks are advertising below 4.5%
     
    Bendigus, 17th Jan, 2019
    #4
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  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    we get this sort of q a bunch.

    much of the time the focus on rate gets removed when talking of benefit/need things like cash out etc

    Decision tree usually is who will do what I want, and out of them, what products work for me, and out of that pool, which product has the lowest effective cost

    The inverted needs pyramid with cost at the top often fails for obvious reasons......

    ta
    rolf
     
    Rolf Latham, 17th Jan, 2019
    #5
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  6. Pakz

    Pakz New Member

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    Thank you for your response Redom.... Does Westpac offer 2K incentive if I want to move from BOM to them considering that BOM is part of Westpac?
     
    Pakz, 18th Jan, 2019
    #6
  7. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    No. Banks don't allow incentives if you move within the same group.

    If you're with BOM, why not simply ask them to match Westpac's offer? They usually do this with no fuss.
     
    Peter_Tersteeg, 18th Jan, 2019
    #7
  8. Redom

    Redom Mortgage Broker Business Plus Member

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    No. Their rate is a bit higher too, if its as simple as you've suggested, CBA's probably a good bet. 2k rebate & 4.09% rate.
     
    Redom, 18th Jan, 2019
    #8
  9. Bendigus

    Bendigus Well-Known Member

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    Kogan Money

    4.27% IO investor
     
    Bendigus, 18th Jan, 2019
    #9