Variable interest rates - what are you paying?

Hi @blackenator , is that for variable investment loans with CBA? If you don't mind, what is the loan amount? Cheers.

 

I've tried the big banks and they are normally >0.35% more than the smaller lenders. I've been with an online bank for 5 years now and below is what I'm paying:

Investment IO
700k
no fees
offset account
3.79%

OO P&I
1M
no fees
Redraw facility
3.03%

 

UBank??

 

OO P&I
Wbc
$925K lvr 100%
Just came off IO 5 years 3.88%.

Called up wbc, Asking for cheaper rate. Was given 3.68% Quiet happy here

 

Do you mind sharing the name of the bank?

 

Do you mind sharing some more details like loan amount, LVR, variable or fixed etc?

 

Sorry it was 3.86 not 3.68 it's with CBA on their wealth package my lvr is about 80%

 

Loan amount is 900kish

 

for investment, CBA quoted me;

 

Just called CBA to try to get my IP loan down. Went from 4.31% to 4.16%. $405,000, P&I, 70% LVR, wealth package. A bit disappointed they didn't come down more and will shop around soon...but still worth the call...

PPoR is 3.53%, $380,000, P&I, 70% LVR, also with CBA wealth package

IP2 is 3.25%, $275,000, P&I, 65% LVR, with AMP Bank (don't think this will ever be beaten?)

 

For major banks I have below options:

Through broker Westpac offer 3.37% OO and 3.77% Investment with 90% LVR, with 1 year annual package fee waived off, $6k rebate for 3 properties

Direct Westpac offer 3.33% OO and 3.73% Investment with 90% LVR, with 3 years annual package fee waived off, $6k rebate for 3 properties

Bankwest 3.26% OO and 3.55% IP 80% LVR 1 year annual fee waived off, no cash rebate

Any good?

 

How'd you get AMP down so low?

 

Seems a decent deal over the next 3 years with the rebates. That's a good chunk of saving. If you're only interested in the rate though, I believe you posted you got a very good offer from Macquarie? They have more flexibility with multiple offsets and a much more competitive rate. Any reason you didn't go that way with your broker?

 

That very good rate was for 70% lvr and also no cash rebate. For 70% lvr I have to put more money into home loans but for 90% lvr I can take out money and keep it in offset account. I generally refinance my loans every 2-3 years, so if I assume that I will refinance the loans in 2.5 years, I will be better of going with Westpac with $6k cash rebate.

Another point is that say for example I will pay around $4k more interest to Westpac as compared to Macquarie, the real cost to me will be $2.5k as I will save $1.5k tax due to negative gearing. (Assuming my thinking is right...

 

That's a good rate you got direct with Westpac. I am going through westpac directly and I am only about to get it down to 3.39% OO, $2K cashback before govt fees and charges and first year package free waived.

 

AMP was offering a discounted loan for staff and shareholders with 500 shares or more...I bought 500 shares for about $5.00 each....I've lost about $1500 on the shares (excl dividends) but at least the interest rate has always been a ripper!

 

damn i missed out. never heard of this offer and my loans were already established im sure

 

Sorry forgot to mention that they also offered 3.84% IO for 90% LVR on IP

 

Offer still seems to be available

Friends and Family offer - AMP

 

But the IP rate is 3.54%