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What interest rate deal are you on?

Discussion in 'Property Finance' started by Andrew G, 1st Sep, 2015.

  1. Andrew G

    Andrew G Member

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    29th Jun, 2015
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    Location:
    Adelaide, SA
    Hi all,
    Just trying to assess whether I need to push my bank (Westpac) a little more in the interest rate department.
    Currently all my IP loans are IO at 4.40%, with the premier advantage package ($395/yr).
    I have approx $1.67M in borrowings total, overall LVR approx 55%

    I received a letter not long ago to say that the interest rates would rise by .27% sometime in September.

    Is this about right with most others??

    Andrew.
     
    Last edited: 1st Sep, 2015
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Hi @Andrew G , unfortunately most lenders are going to, or already have increased their rates by similar amounts to Westpac.

    I don't think refinancing to a cheaper rate is a good move at this point. Firstly there's very few lenders that actually have a better rate, and there's a good chance that those that haven't increase yet, will increase in the near future. Refinancing might simply cost money to move with no real benefit.

    The other alternative might be to fix your rates, but at this point Westpac have already increased their investment fixed rates and they're higher than what you're going too. At this point you won't get a cheaper deal, but you'd be insulated for a period of time against future rate rises; which are not out of the question for investors at this point.
     
  3. Tallowood

    Tallowood New Member

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    From ANZ (after their recent unjustified opportunistic 0.27% increase) I'm currently getting 4.75% on loans totalling $1.15M with an LVR currently approx 58%. That seems in line with the OP's rate so I'm less inclined to go rate shopping now unless I could get at least 0.4% off by switching to another institution.

    Any brokers out there know an institution who would give me a variable rate of 4.35% with the above figures ?
     
  4. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    About the same stats and 4.47% with CBA, pretty sure that's after the .27% increase.
    Gonna go P&I for the PPOR loan for the lower rate.
     
  5. SaberX

    SaberX Well-Known Member

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    Is Westpac one of the banks who can't distinguish IO loans for INvestors to PPOR applied loans?? Just wondering so that any current loan application to Westpac even being an owner occupied interest only loan would potentially get a 0.27% rate bump up if they can't distinguish? I thought it was NAB and Westpac whose systems can't distinguish?
     
  6. chylld

    chylld Well-Known Member

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    Is 4.40% before or after the 0.27% investor 'bonus'?
     
  7. Andrew G

    Andrew G Member

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    Adelaide, SA
    My rate of 4.40% is "as of now". The loans all increase by .27% after 25th Sep, so they will then all be at 4.67%.

    Andrew.
     
  8. chylld

    chylld Well-Known Member

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    You may be able to get another ~0.2% off... talk to your broker
     
  9. dan2101

    dan2101 Well-Known Member

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    NSW
    4.27 with loans.com.au after increase.
     
    SouthBoy likes this.
  10. SouthBoy

    SouthBoy Well-Known Member

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    I have IP loans with 3 of the big 4 (CBA, NAB & Westpac). NAB is charging the most at 4.89%. Westpac charging me 4.60% and CBA charging 4.57% (all variable rates). I am paying $395/year wealth package fee to CBA and Westpac as well. How much would it cost me to move my NAB loans to loans.com.au or another lender?
     
  11. skater

    skater Capitalist Premium Member

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    I have loans with Wpac, CBA, NAB & Heritage Bank. I'm on 4.33% with Westpac. No idea with NAB, but it's mostly irrelevant as a lot of it has offsets attached. CBA is all over the shop at the moment. Waiting on the broker to finish some stuff with them before I get that sorted & I've got to put some $$ into offsets there as well, & Heritage has only a small amount. I'm not fussed what that is.
     
  12. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    I'm getting good discounts with CBA at the moment, I'm certain they would beat the WBC rate on that loan amount.
    I just did dummy pricing with CBA based on your numbers, and got 1.3% off the SVR which is a rate of 4.42%. Might be able to get more potentially by putting it in front of a pricing person.