Whats you Interest rate?

You don't want to do that - the structure is crossed and not worth the rate.

Your broker may not be able to do it - it will depend on the volume he writes. Or it's possible he's being lazy.
If you're not getting any new funds out I think you'll struggle to get 1.5%, that would be for new customers or old customers getting new money.

 

Yes, just ask your broker to do a pricing request for you. Whether you get it depends on loan amount and LVR. It will help if you're getting some extra funds out while you're at it.

 

Now following this thread with interest as have 4 x IPs, 8 splits (P&I and IO) with only 2 being fixed beyond 2016 with 3 different lenders ranging from 4.6% - 5.34% (ouch!).

Hoping I can undo some rookie mistakes by refinancing (like switching all to IO) and hopefully getting closer to 4.6% for all, as I stand to improve my cash flow by roughly $10k a year.

Not sure how I'll go though as our serviceability was tight to begin with, now post APRA we might be stuck with what we've got.. Our broker has quite the challenge ahead of him!

 

Thanks Jess, my CBA loans weren't through a broker, they're pretty old loans.

I'd like more money but we won't service since APRA changes. Our LVR with CBA is around 70% on $750k.

 

Do you mean you won't service with CBA? Or any lender? Different lenders have different servicing calculators. You'd be surprised to find that while one lender says no based on their calculator, another lender may say yes.

 

Any broker can do the pricing request. You can try the branch first if you like, not sure how you will go.

 

Special deal. CBA offering 1.5% discount on investments loans (needs $100K new money) via diamond brokers during February. That's 4.25% net rate.....correction 4.37%

 

Yep - it's a nice discount!

Net rate is 4.37% though?

Cheers

Jamie

 

Ooops I got a bit excited there yes correct Jamie. 5.87% headline so 4.37%

 

That's alright mate - I'll forgive you. I think we all got a bit excited when we got that phone call from the BDM

Cheers

Jamie

 

AMP are offering this at 4.08%, for one or more investment loans as well. If the primary security is owner occupied.

However, all investment loans come in cross collateralised. Given also that this AMP product doesn't offer an offset account, it is far from ideal for investment property.

 

The broker got back to me and said they can offer me 3.99% variable (1.73% discount off variable rate for the life of the loan), it's called the AMP Affinity package. No ongoing fees and a few things waived.

"The Affinity Package is a flexible loan as I mentioned you can have 2 split loans Investment and owner occupied supported by both securities linked.(not separate) You can have an offset for each loan and also an access card with fee ATM usage at any Nab, BOQ and Redi ATM. Also internet, Bpay, phone banking, etc. There are no ongoing fees or annual package fees and if you should wish to increase in the future the $375 increase fee is waived under this package. Features of the product are attached."

So...is it a good deal?

 

No, it's just a good rate. A good deal would be if the securities weren't crossed.

 

I don't understand that bit! Is it the same as what I have at the moment with commonwealth? 2 loans together?

 

It means that the deal you are describing above isn't advisable because they will cross collaterise your loans. That means that your PPOR will be used as security for the new loan as well as the property you want to purchase.

 

It's when the bank uses 2 properties as security for one loan, for eg, if both your PPOR and IP are used as security for your IP loan. It's all bad for a variety of reasons. Good thing is that it's not necessary in nearly all situations, and if you're under 80% LVR very easy to fix.

 

Hmm mine is cross collateralize with rate PPOR - 4.30% and IP - 4.45% 5 years. Is that a good rate also how is easy is it to fix (fees etc) LVR:-65%

 

Are your loans fixed? You might be able to do a partial discharge on both, but will depend on whether both individual properties are 65% LVR or if one is really low and the other is really high. Probably best to get some specific advice.

 

Hi Wazza, in response to your question, as Jess and York have said. I agree with them.

I have used the no frills 4.08% for OO deals. Even then with caution.

But would never want to cross collateralise investment property to save around 0.3% (tax deductible).

 

Does the 1.5% CBA discount apply to PPOR refinances too, or investment loans only?