Westpac 5.64% variable interest

Discussion in 'Property Finance' started by Dean Collins, 6th Dec, 2018.

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  1. Dean Collins

    Dean Collins Well-Known Member

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    Westpac.JPG
    In case you are wondering Westpac why I've sold some of my USA equities and paid off our entire variable loan Westpac.....this would be why, 5.64% variable for an IP loan is ludicrous with 1.5% rate from the RBA.

    You got too fat and greedy and that's why we are putting you on a diet.

    I wonder how many other people here are taking the same attitude and just using excess funds to pay off variable loans to the max.
     

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  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Is there any reason they wouldn't switch it to a more competitive product? Nobody should be paying the Standard Variable Rate, not even expats.
     
  3. kaibo

    kaibo Well-Known Member

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    you're getting majorly ripped off. I am getting 1 per cent with westpac off your rate for IO investor and even that rate is not that good. It's ridiculous how they have increased the headline rate to make it seem l like we are getting a good deal.

    That's the new game for the banks to dare you to refinance and if you can't then you are stuck with the crap rate because they know many people won't be able to refinance
     
  4. Skinman

    Skinman Well-Known Member

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    Was that a P&I loan?
     
  5. Dean Collins

    Dean Collins Well-Known Member

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    Peter unfortunately cant move the mortgage as 80% of the mortgage is fixed at 3.99% (5 years with 3 years left).
    They know we are stuck with them for this $75k so we've been getting ripped off over the last year with increases by Westpac every few months.
    Like I said....have the spare cash so paying this off 100% and their profits will suffer whereas in the past happy to leave it in USA equities and get 8+% etc.
     
  6. Dean Collins

    Dean Collins Well-Known Member

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    yes. but non resident LVR of 70%.
    (like I said above most is tied up in fixed at 3.99%)
     
  7. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    3.99% on most of an investment loan isn't exactly a disaster, it's currently holding up well.

    I assume you're on the Premier Advantage Package? Surely they can price the $75k more appropriately?
     
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  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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  9. Harper Lee

    Harper Lee Member

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    Hey Steve,

    You could get the loan repriced. Do you have a broker you're using, they can do a pricing request? If not, I'm happy to get a pricing request for you, won't cost you a thing. No change in your loan.

    Being a non-resident, it may be harder to refinance, but you might want to check with Westpac to see if there are break costs. If the reference rate on BBSW has increased you can break the fixed rate and go to variable.

    David