Hey peoples,
Any recommendations on cheap variable home loans
I'm currently with fresh start variable CUA 4.21%.
Westpac have a intro offer for 2 years 3.75%.
Cheapest Homeloan Interest Rates
silkysmooth on 12/06/2016 - 20:55
Last edited 13/06/2016 - 09:05 by 1 other user
Last edited 13/06/2016 - 09:05 by 1 other user
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Owner
Teachers Mutual 3.74%pa fixed 3 years
https://www.tmbank.com.au/home-loans#ah_fixed-home-loans-own…Newcastle Permanent Premium Plus Package @ 3.74% p.a. with 100% offset account
https://www.newcastlepermanent.com.au/personal/home-loans
I personally wouldn't fix my mortgage atm. If banks are offering 3 yrs fixed at under 4% p.a. that means they are confident that rates aren't going to increase for a while.
The Premium Plus has been really popular with our clients. Sharp pricing on a product that has won a lot of awards. In fact, we're seeing pricing 10BPS p.a. cheaper than what you've quoted for loans $500K+…so they really do stack up well compared to alternatives.
Regarding whether to fix, the decision usually comes from a person's overall financial needs as opposed to just cost. There is a good degree of comfort that comes from having certainty in one's budget. People on a tight budget value the certainty that comes from having a cap on what is likely one of their biggest regular expenses. Also, interest rates are literally at record lows, and although some pundits might agree that there may be cheaper around the corner, if one looks at the long term average for home loans it is closer to 7%p.a. than 3%p.a. NB: The delivery rate will depend on spread from cash rate - but that spread is often ~200+BPS p.a. It's probably also worth noting that expert opinion in this arena is hardly foolproof. Why? Anyone that knows exactly where interest rates are headed can make billions in interbank cash rate futures. So one can draw their own conclusions about the reliability of people voicing free opinions on the matter.
Hope this helps.
I got CBA to do 3.9% variable inc offset plus $1500 to refinance with them and free package (ie no fees) for the first year.
I'd be wary of any "intro" offers as what does it go up to after that?
How did you negotiate with them for such a low rate? We are on the wealth package and our interest rate is 4.050% at the moment and can't seem to get it down anymore. Do you have a huge mortgage or multiple mortgages?
I should have said that I have my small business accounts with them and they were keen to get me to move my personal stuff. But no business loans and a pretty average home loan. I dare say they had a quota to meet but who knows.
Coming from another bank I guess I had more leverage?
Same here but did not get first yr fee waiver. Appreciate your negotiation skills:)
Is it bad if you keep changing banks every couple of years. Does it look bad at your credit rating?
Generally speaking, refinancing every couple of years will not have a noticeably adverse effect (if any) on your credit rating. However, refinancing every 12 months (or sooner) is not likely to improve your profile as a potential candidate for a loan.
Similarly, if you are worried about your credit rating it would be wise to avoid making multiple home loan applications simultaneously and to avoid making other applications for credit (like for credit cards, for example) in the preceding 6 months.
If you have a high credit rating (over 1000), strong assets and net income, you'd have to be making frequent applications for credit on an ongoing basis to damage your credit record enough to seriously jeopardise approval likelihood. That said, having a high credit rating is likely to increase in importance as more lenders look to use such scoring when determining custom finance discounts - so it's probably wise to try and preserve a high credit rating if you've got one.
Hope this helps.
Thanks heaps that makes sense, might negotiate with my current provider see what they say
How about Ubank Variable rate 3.74% ? The downside being that it doesn't have offset but has redraw.
Everything is online correct. Long term thats a good rate
True that its online only. It is backed up by NAB and I have read mixed reviews about their customer service. Mainly the issues are during sign up but after that seems very good service.
Owner occupier or investor?