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Which bank or institution has the Best Interest Rate for Investment Loans

Discussion in 'Property Finance' started by Brisbane04, 21st Sep, 2015.

  1. Brisbane04

    Brisbane04 Member

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    Victoria
    Hi,
    I have 3 loans coming off fixed next month and the best NAB could offer for interest only was 4.82% does anyone know of any other institutions that could beat this?
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    You can get 3.99% fixed ATM but it is not all about interest rates as an investor.
     
  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Quite a few can, but it does depend on the total loan amount, structure and LVR. It helps a lot of your own home (non investment) is part of the mix.
     
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Agree with the guys above.

    You'll get better rates with smaller lenders and those majors who are now back to providing discretionary rate discounting in investment lending.

    Having said that - structure and being able to get finance should be the primary concern these days - not getting the lowest rate.

    Cheers

    Jamie
     
    Dale likes this.
  5. Dale

    Dale Member

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    Same with CBA I believe. I was quoted 4.82%

    I think Suncorp was something like 4.6%
     
  6. Redom

    Redom Mortgage Broker Business Member

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    In answer to your question, some of the latest and greatest info on the current rate market:

    1. CBA, Westpac, St George - all discounting on investment loans. This makes them a better pricing option than some of their major competitors. Westpac are/were offering 1.33% on 500k+ without any trouble, CBA are a little lower than that (but have a slightly lower SVR).
    2. St George at 4.34%, basic product, is up there with the best, but 80% LVR.
    3. Can go lower with smaller lenders (4.29 with Flexichoice for example). 4.13% with white label Advantage products (P/I rate).
    4. ANZ aren't discounting on investment loans rate, so are a bit higher than the rest of the market.
    5. NAB are a little higher, but will move on P/I rates.

    Note, that what we're seeing in the marketplace is a tightening up between the majors and smaller providers. For example, the difference between loans.com.au and bigger funders is marginal now. Previously it would only be so close for large lending sizes.

    Some rate trade-off may be necessary to get the correct structure. There are strong incentives to go P/I for example, but it may not be suitable to the strategy, particularly if there's owner occupier debt/future lending to consider.

    Its also A LOT of moving around.

    At the beginning of the year, I said 2015 is the year of APRA changes in the lending market, most of its happened i suspect.

    From here, my bet is 2015/2016 being the year of deck shuffling with lenders continually changing in response to a 'target' ceiling.

    A 10% investor limit cap will see lenders aggressively try and reach this cap if their falling short by pricing well. If their above it (NAB for example), you won't see the pricing change.

    Hence the deck shuffling. St George may be holding the 'OPEN FOR BUSINESS' sign today, but once they get enough, i suspect their offering may change. Other lenders will hold the sign up later.

    ...

    Using policy to shuffle around isn't really the right mechanism as there's an adjustment cost associated with training everyone up to speed with changes. There'll likely be more 'stickiness' to policy changes. Pricing however, is more seamless.

    So what to do? While the rate is always a consideration, prioritise the right structure first and foremost. Rates change and in the current environment, i suspect there'll be less and less consistency.

    The above rate breakdown may be true today, but different by mid October.
     
    Bentley and Perthguy like this.
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    what week is also a good question


    ta
    rolf
     
    Jamie Moore likes this.
  8. Richard Taylor

    Richard Taylor Mortgage Broker & Brisbane Buyers Agent

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    101 lenders will beat it but there are so other factors to consider.

    First make sure you can service in the new lending environment and then a matter of ticking off the wish list.

    Refinancing investment loans has become the flavour of the year.

    Cheers


    Richard
     
  9. Redom

    Redom Mortgage Broker Business Member

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    And CBA now join the party with a pretty competitive 3 year variable rate offer for their basic loan @4.39 (3 year discount).
     
    joel likes this.