To Fix or not - that is the question

here is a screen shot of the rates i am getting when trying to switch using netbank

 

it is 0.25% better for P&I

 

Note - those rates are without the MAV wealth package @ $395/year. If you're on the package the rate will reduce a further 0.15%.

Likewise you can negotiate the P&I rates lower - I've been locking clients in at ~3.92% for clients at the moment for the 2 year fixed P&I rate.

 

i might give them a call in the morning then

 

Just to confirm I did receive the extra 0.15% discount on all 3 loans when it was processed today

 

it is good rate! is it with CBA.

 

Yep!

 

Hi Wylie

What conact number did you call to CBA? Is it the loan processing centre's contact number or a branch number?

I have an existing loan with CBA and would like to negotiate for the same interest rate as yours.

 

For CBA you'll likely be able to get 3.92% fixed @ 2 years P&I- just need to ask your broker/a broker to get this sorted for you.

 

I have just refinanced and got conditional approval from Bank of Queensland for fixed rate of 3.99% 3 years P&I. I wonder if the fixed rate will increase soon and if I should lock the rate now?

What is your opinion?

 

Nice!
I just fixed 4 Ip loans at 3.88% P&I for 2 yrs wit NAB. Saving over $9k per year in interest from previous rates. The carrots are being dangled in front of everyone to get off IO. Probably won't be as generous once they all get their IO lending down to around 30%.

 

Nice work, I'll need to see what WBC, RAMS & ST GEORGE can do

 

Keep us posted whether Stg will go below 3.99% for their 3 years fixed PI.

 

APRA has today announced a sweeping raft of additional capital requirements for the banks. 100bpts over their Dec 2016 levels. Id be fixing now - especially if you dont have strong cash flow. I told everyone for the past 1-2 years that this was coming. Its all part of the BASEL IV stuff I have written about previously.

I'd also be using any remaining borrowing power to inject some holding power into your portfolio. Build a granny flat if you can. Or purchase a cash cow. Otherwise, prepare for I/O rates that will have a 6 in front of them by the middle of 2018

 

When you mean inject some holding power into your portfolio; do you mean get this equity out now and let it sit if you need to pull the trigger?

 

I mean get your equity out while you can, and use it to add some additional income. You could add a granny flat for example, if you own property in a state where its allowed. Or you could purchase something that generates strong surplus income. Either way, it would aid your ability to hold onto what you already have as the cost of holding existing assets continues to rise.

 

Hi Corey,

My (independent) broker got back to me today saying CBA would only fix my investment loans for 2 years at 4.44% for P&I

I'm trying to switch from IO.

Would they have changed this in the last week? Should I ring CBA direct to get the 3.92?

 

That's abit high, go into any CBA branch, they will do the 2year fix for you at 3.92%. They fixed 3 of my investment loans at that rate in 10 mins.