Variable interest rates - what are you paying?

Discussion in 'Loans & Mortgage Brokers' started by bunkai, 3rd Jun, 2019.

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  1. Silverson

    Silverson Well-Known Member

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    3.47 p&i cba
     
  2. Mcube

    Mcube Well-Known Member

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    @Silverson , is the rate with CBA for owner occupier or investment please?
     
  3. Silverson

    Silverson Well-Known Member

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    OO, however used as security for investments(shares) so effectively an investment loan at oo rates
     
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  4. kierank

    kierank Well-Known Member

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    3.40%, IO with Offset, investment secured against PPOR
     
  5. Eleven

    Eleven Well-Known Member

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    Which bank, ING?
     
  6. momentum26

    momentum26 Well-Known Member

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    That’s a good rate for IO. Could you please share which bank is this?
     
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  7. kierank

    kierank Well-Known Member

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    Suncorp
     
    Last edited by a moderator: 2nd May, 2022
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  8. momentum26

    momentum26 Well-Known Member

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    Thanks
     
  9. God_of_money

    God_of_money Well-Known Member

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    AMP can offer 3.29% P&I for IP secured against PPOR
     
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  10. kierank

    kierank Well-Known Member

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    I don’t like P&I, especially for IPs :eek:.

    Much prefer IO at say 3.40%, with 100% Offset :D.
     
  11. Arcticfire

    Arcticfire Well-Known Member

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    This is a great rate - but I’m have trouble understanding what this is exactly

    Is this a loan on your PPOR ? - as that rate is very low for a investment property loan

    The best I/O investment loan that I am aware of that is available to the open public 3.59% from Macquarie Bank that was discussed earlier in this post

    I am aware that BOQ specialists will negotiate slightly better rates than Macaqurie but these loans are not available to the general public and only for larger loan amounts
     
  12. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Suncrap, PPOR and IO.

    You must have magic powers :)

    they usually play the bait and switch piece



    ta
    rolf
     
  13. kierank

    kierank Well-Known Member

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    It is very simple.

    As I stated in an earlier post above (I have highlighted the key words to answer your question):
    We bought an IP using two loans, both are IO. One loan of 80% was secured against the IP. The second loan (this one) was for 20% deposit, S/D, legals, etc was secured against our PPOR.

    I don’t know anything about Macquarie Bank loans or BOQ loans as I have never borrowed from them. We do own a nice parcel of MQG shares plus we do have a CMA with MB.

    I am a very simple old investor. That was the rate Suncorp offered me, after a little persuasion :D.
     
  14. kierank

    kierank Well-Known Member

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    You know me Rolf. I always believe I am in the strongest negotiation position :D.

    The following probably didn’t hurt:
    1. 35+ years as a loyal customer with Suncorp.
    2. Excellent credit rating.
    3. Very good security.
    4. Low portfolio LVR.
    5. Strong cashflow.
    6. Good cash reserves.
    7. Believeable exit plan
    8. Solid business case
    9. Threat that we would take all of our business to another banking provider (St George or NAB).
    10. ...
     
  15. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I managed to do it a while ago. Application went straight through, really smooth.

    That said their policy is they simply won't do it. I figure I got lucky and found an assessor that was asleep.
     
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  16. Pash81

    Pash81 Well-Known Member

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    In my case going through a broker is beneficial by around $900 over a two year period (assuming i generally refinance every 2 year).

    For $900 savings would you go thorugh the broker and sign a 2 year claw back period (have to pay the commission back to the broker if i refinance or payoff the loan) or would you just go directly through the bank?
     
  17. Arcticfire

    Arcticfire Well-Known Member

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    Thank you for explaining that - I understand the situation now

    Sound like a good option if you have equity or have paid off your PPOR - get a loan for your IP but at PPOR rates - its something I should look at

    May I ask what rate your are getting for the 80% loan secured against the IP

    Cheers
     
  18. kierank

    kierank Well-Known Member

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    It was fixed over 3 years ago at 3.99%.

    We went down the fixed rate path due to the size of the loan. We could afford a rate of 3.99% but any increase in rates would have had a huge impact on our cashflow.

    So, we locked in a 3.99%. We realise that the rates have gone down and our cashflow would have improved but we were prepared to take the risk.

    Hindsight is a magical thing. We bought ourselves SANF.
     
  19. spludgey

    spludgey Well-Known Member

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    My Firstmac fixed rate expired.
    Any guess what it was rolled over to?

    Highlight below to read the real rate.
    7.32%!
     
  20. Arcticfire

    Arcticfire Well-Known Member

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    I was wondering do most banks allow a I/O investment loan be secured against PPOR and not the Investment property - and thereby allowing you to get the PPOR rate ?
     

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