What are your investment only loan rates?

Discussion in 'Property Market Economics' started by is_don_is_good, 29th Jun, 2017.

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  1. is_don_is_good

    is_don_is_good Well-Known Member

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    Hi Everyone

    Will hopefully be picking up another IP this weekend at auction.

    With all the talk of rate increases recently I'm wondering what investment only rates people have on their IPs in Melbourne or elsewhere?

    I'm curious if anyone has picked up one recently that is well below the big 4 banks as well.
     
    is_don_is_good, 29th Jun, 2017
    #1
  2. Jasper

    Jasper Well-Known Member

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    Macquarie 4.91% and they just keep bumping it up. Luckily I have the whole amount offset so it doesn't matter to me.
     
    Jasper, 29th Jun, 2017
    #2
  3. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I think you mean interest only repayments for investment loans?

    Over the next week, you'll probably find the big 4 banks (and a few others) are going to be above 5%.

    There are smaller lenders with interest only investment rates around 4.3%, but these lenders often have more difficult qualification criteria.

    If you're willing to consider principal & interest repayments, you can do better again. It's getting to the point where there's not much cash flow difference between P&I and I/O.
     
    Peter_Tersteeg, 29th Jun, 2017
    #3
    Dean Collins likes this.
  4. Dean Collins

    Dean Collins Well-Known Member

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    Peter,
    Sure the smaller ones may be 4.3% today.....but unless you are going 3 or 5 year fixed then what does it matter what their current rates are.

    Smart investors need to be asking what the rates of these cheap lenders are going to be in 6-12 months from now.....

    So Peter I guess the real question is whats the cheapest interest rate you can get today for a <70% LVR, 5 year fixed, IP loan with IO and the same requirements for the P+I rate?
     
    Dean Collins, 29th Jun, 2017
    #4
  5. is_don_is_good

    is_don_is_good Well-Known Member

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    Thanks for the feed back. I'm thinking that anything sub-5% from a big 4 that can be locked in is a good deal.
     
    is_don_is_good, 30th Jun, 2017
    #5
  6. Gavin Ng

    Gavin Ng Well-Known Member

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    About two months ago, I fixed three loans at around 4.25. I kept one variable so I could keep my the offset. That one went from 4.15-5.15 over the space of two months - bank is CBA.
     
    Gavin Ng, 30th Jun, 2017
    #6
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  7. Coota9

    Coota9 Well-Known Member

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    Currently paying 3.75 % on an I/O PPOR Loan..
     
    Coota9, 30th Jun, 2017
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  8. is_don_is_good

    is_don_is_good Well-Known Member

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    Great rate! How did you manage to get that? Smaller lender?
     
    is_don_is_good, 30th Jun, 2017
    #8
  9. Coota9

    Coota9 Well-Known Member

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    With ANZ..believe it's an error on their behalf,I think they can absorb it though!!:D
     
    Coota9, 30th Jun, 2017
    #9
  10. Todd

    Todd Well-Known Member

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    I refinanced and my broker got me 3.89% fixed for 2 years with Westpac interest only for all my IP loans but that was October 2016 and things have changed.
     
    Todd, 1st Jul, 2017
    #10
  11. hash_investor

    hash_investor Well-Known Member

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    good that you got it fixed back then.
     
    hash_investor, 3rd Jul, 2017
    #11
  12. josh123

    josh123 Well-Known Member

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    Iv got that same rate as well with ANZ. I thought it was a bit strange it decreased
     
    josh123, 3rd Jul, 2017
    #12
  13. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    I'm on 4.53% fixed 4 years from CBA. Interest only for all my investments.
     
    eletronic_exp0430, 3rd Jul, 2017
    #13
  14. Natedog

    Natedog Well-Known Member

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    I think you guys will be getting a letter in the mail jacking that up by approx 55 basis points (I got one today!)
     
    Natedog, 4th Jul, 2017
    #14
  15. Natedog

    Natedog Well-Known Member

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    Have you got an increase letter in the mail yet?
     
    Natedog, 4th Jul, 2017
    #15
  16. josh123

    josh123 Well-Known Member

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    Nope nothing yet. I wouldn't be surprised if it happens sooner or later.
     
    josh123, 5th Jul, 2017
    #16
  17. Coota9

    Coota9 Well-Known Member

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    My postie hasn't delivered the bad news yet either!!
     
    Coota9, 5th Jul, 2017
    #17
  18. Scaphella

    Scaphella Well-Known Member

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    I went to the trouble of refinancing in September last year, got 4.09% with commonwealth, it's now 4.54% and now I hear a possible .30-.55% increase. The pressure will be felt but that's probably the idea. :mad:
     
    Scaphella, 5th Jul, 2017
    #18
  19. Natedog

    Natedog Well-Known Member

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    It kicks in 12th August with ANZ
     
    Natedog, 5th Jul, 2017
    #19
  20. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Even after the rise if you're still sub 5% you're doing pretty well, comparatively. :)
     
    Jess Peletier, 5th Jul, 2017
    #20
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