What interest rate are you paying?

Also remember that the discounts are not advertised. So ANZ's rate of 5.38% may not appear that sharp compared to the smaller lenders, but you need to factor in discounts of .7 - 1.25%+ on their professional package

 

Hi
I'm thinking of going back to westpac for an additional IP loan.

At present I'm receiving a discount of 1.3% making the rate 4.14%. Can anyone confirm if they have recently obtained a similar discount / rate from westpac, or has westpac now reverted back to the 0.7% standard discount (following advice from apra to cool down property lending).

Thanks

Tony

 

I've heard max discount for new Westpac IP loans is 1.1%. I had an offer of a 1.4% prior to the latest changes

 

Max 1.1 if you have current PPOR with them and even than it's case by case...
1 If you only have IP and over $1m.

If your after a "low rate" and dont care about policy and loan order...than i wont mix IP with the Big 4 in the same sentence..

 

My Relationship Mgr at Westpac mentions a rate review of my portfolio with them in conjunction with a PPOR land/build of $0.5m. I am looking for comments from the mortgage brokers here on my situation or what I can expect from another lender. Email me direct if necessary.

Existing loans with Westpac:
4 x IPs $1.43m loans IO 4.48-4.69% collateralised, LVR 80%. All in joint names except one in HDT.

The discount is 1% but the HDT is for $0.44m and I understand is hard to find a lender.

To consider next month (and maybe even the existing loans):

$0.5m land/build PPOR. The manager considered the recent changes will not affect their prequalified loan about 5 months ago, as it is a 'strong' deal.

 

[QUOTE="Roosterman, post: 6494, member: 1010"

Due to the latest APRA changes it may not be so easy to obtain additional discounts, but I would be interested to see how 4.13% compares to what other investors are paying.....[/QUOTE]

I think you'll find that almost all lenders have ceased just about any form of discounting beyond their advertised rates, for I/O debt. P & I debt is a different story entirely, as lenders seek to rebalance their heavily overweight books with more P & I debt.
In other words, you wont likely get any more I/O debt from ANZ @ 1.25 below SVR , nor will you get it anywhere else. Even the non banks, who are quite well placed rate wise, have increased I/O debt by 10bpts generally speaking. This is one of the changes APRA's intervention has imposed upon the market; the others being LVR and servicing related. Money is still very cheap though - just not quite as cheap and much harder to get, especially for those already substantially geared.

 

Now; 4.5% with CBA.

In about 60 days - ZERO!! yeehaa

(temporary until the next investment)

 

4.3% with CBA. LVR at 80%.

I keep pushing for more but they seem reluctant. A recent small re-fi of $100k is on a bit more (4.5% I think) and they aren't budging on it.

Blacky

 

And it looks like I'll now be paying 4.4%, up from 4.13% for IP loans. Thanks ANZ, that's awesome

 

CBA 4.45% on 600k 1% discount last I checked.

APRA changes? Does this refer to average mortgage risk weight changes? ...sorry I've been on autopilot for several years.

 

You may need to edit the question to "what interest rate WERE you paying?"

 

I managed to get a 1.1% discount on only 390k of borrowings with ANZ. Since then, I've moved two loans over (~$80k and $110k) and only getting 0.6% discount on these. Breakfree package; 10 years IO for the two new loans.