Westpac Investment Loans - advice

I am interested in those that have Westpac Investment Loans or those that can provide some advice.

Currently I have about 700k with Westpac split 50/50 with:

- half fixed at 5.69% for 2 more years (break cost is 11K): and
- the other half variable with a 1.3% discount at 4.72% (note about 70% of this is currently offset, i.e. paying no interest on 70% of variable, but potentially looking at buying something else soon)

LVR is below 60%.

I cant do much about the fixed but feel the variable is a little high, any thoughts?

BOQ offered a 3.94% 3 year fixed rate which might be good as a direct swap for the above fixed (but yes, rate isn't everything, and there are many other considerations). Of course, if I was to break, I can claim as a deduction.

Any thoughts if the variable rate Westpac is giving is competitive or any other thoughts on the situation above?

 

Rate is a silly reason to move. Boq looks good now, next week It'll be another lender.

I'd start investigating your options with the new purchase and perhaps move one or more properties to a new lender, if possible or required from a structure perspective.

 

Westpac isn't going to come close to the BoQ rate but the big question is why is the LVR sitting at 60% and why haven't you extracted the equity up to 80%?

 

Variable rate is higher than current market rate - if you call retentions you may be able to get it down 20-30bps. Perhaps get a quote from another major on hand beforehand or do some quick research to get lay of the land on current market rates.

 

It's hard to get the retention team to reduce rate when you have a fixed loan in the mix- they know the cost of refinancing will be high.