Westpac 5.64% variable interest

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.

 

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.

 

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

 

Was that a P&I loan?

 

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.

 

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

 

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?

 

Hey Steve,

You could get the loan repriced.

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