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Westpac Investment Loans - advice

Discussion in 'Property Finance' started by headphonesmania, 30th Dec, 2015.

  1. headphonesmania

    headphonesmania New Member

    Joined:
    30th Dec, 2015
    Posts:
    2
    Location:
    Sydney
    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?
     
  2. tobe

    tobe Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    900
    Location:
    Melbourne
    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.
     
  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    641
    Location:
    Sydney
    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%?
     
    Propertunity likes this.
  4. Redom

    Redom Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    863
    Location:
    Sydney (West) and Canberra
    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.
     
  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Posts:
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    Location:
    Canberra and Sydney
    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.
     
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  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,175
    Location:
    Gold Coast
    What is your end goal ?

    Different criteria for those that have ma n pa loans that they want to pay off and never do anything again until we sell to fund retirement village, versus someone that wants to build a portfolio.

    More often than not chasing rate over availability of funds tends to cost much more than a few points of rate in the long term.

    ta
    rolf
     
    TheGreenLeaf likes this.