Westpac P and I Owner Occupier

Hi

Friend of mine has $706k with Westpac at LVR of 60%, owner occupier.

The rate they are getting is currently 4.59% on half of it being variable and the rest is fixed at 4.14 (fixed is expiring in November).

I have asked them to get the break cost on the fixed but they are likely going to move banks.

They do not plan any further investment activities and just need an offset account with a credit card. They are also looking to fix for 2 or 3 years as they may have some growth in there family.

I said I would look for a broker for them.

Any thoughts on rates and banks for the above, they would likely fix 550k for 2 or 3 years for stability and have the rest variable. They are also looking to get a cash back promotion from the new bank to offset break in the fixed cost. Ideally they would like to stay at one of the big 4, and preferably CBA but happy to look at other reputable options.

Has anyone had any experience with rates and cash back on the above with big 4 and those outside the big 4? I have heard some cash back of up to $2000 with CBA and variable rates of 3.7 and fixed of between 3.8ish for 2 or 3 years fixed.

Happy to hear thoughts. Thanks

 

Let the broker do the work... I'm sure you can find one easily on the forum

If they've got no ambition to invest and just want to pay down the debt I'd have a look at ING. Their owner occupier rates are sharper than the majors and the fixed rates are particularly sharp. The caveat is that they'll need to have a strong application to cover the higher servicing benchmarks.

 

under 3.8% should be possible

 

Westpac offered me 3.72% on $500k when I asked them to match CBA.
Better to go with CBA and get the $2000 cash back, which I believe is extended till July end.

 

I assume we talking fixed - If I break 4.4% fixed (2 years to go) - for 3.8 for 2y does it make sense? (WBC both sides)

Or maybe I should break it for CBA... scary.