Variable interest rates - what are you paying?

A funny thing happens when you try to do it in reverse though. If you have an IP and try to release equity for the purpose of buying a PPOR, they're probably going to do the equity release at investment rates.

At the end of the day, the difference between IO & P&I, owner occ & investment, is really just lenders finding an excuse to make a larger profit. Every lender is in on it.

 

I think it is easier to purchase the loan secured under the investment property, then refinance with a PPOR secured rate. depends on the bank if they give you the PPOR or investment rate, but most banks want your business.

 

Tha

Thanks for all the replies

I will talk to the bank

I must admit I did not know that doing this was a option - if it saves you some money why not

 

CBA cut rates yesterday ahead of expected RBA cuts. On a quick look variable seems to be reduced by 0.5%

Cuts to fixed rates too.

https://www.commbank.com.au/content...oad-printed-forms/home-loan-update-002842.pdf

 

When will this variable rate cut coming into effect please?

 

Thanks for posting this about CBA. I wonder if this is for existing customers as well as new? It may say in the attachment which unfortunately I'm not able to open right now.

 

If CBA hasdone-does it mean others will follow?!

 

CBA haven't cut variable rates, only some of their fixed rates

 

Not necessarily

 

CBA fixed rates still not very competitive are they, at least not for OO.

 

Not really on the advertised, but who actually just accepts an advertised rate?

 

The CBA has a niche for 90% investment loans in the Extra Home Loan. Unfortunately you can't switch to this from another product.

Depending on the product and repayment type, they're pricing most other loans about 0.1% - 0.5% above some of the second tier lenders. Post settlement pricing is a mixed bag, usually good enough to retain customers but they usually do better for new business.

Serviceability is fairly average for investors at the moment due to a badly thought out policy. Hopefully they'll recognise this and correct it.

 

What type of discounts would CBA provide on the advertised rates? Would they match St George at 2.99% fixed rates OO P&I for 1-5 years?

 

Have seen multiple times they have match 2YR @ 2.99% haven't had any request for > 2 years

 

Just negotiated my rates with ANZ,

319k Investment 10yrs IO
Was 4.64%, now 4.25%

157k Investment P&I
Was 4.28%, now 3.90%

Pretty happy with that.

 

Did you negitiate directly?

 

Yes, well I wouldn't call it negotiating, all I did was drop them a note on the online banking portal asking what's the best rate they could offer me.

I got a call back the next morning with them pretty much offering me these rates and other options if I switched to P&I.

 

I just called and that's also the best ANZ could offer me.. 4.25% i/o investment loan for 398k borrowings. I asked to waive the breakfree package fee but they wouldn't budge. I'm a little disappointed with that. I would have thought i'd be able to get closer to or a little below 4%. Anyone?