Hello gang,
I am going to switch my mortgage for my investment property (currently getting reamed at 4.8% with no offset).
What interest rate is your mortgage at the moment and with what lender? Or what is the best rates/deal you're aware of at the moment?
Cheers!
Cheers - Who are you with and who are you moving to?
Nab . moving to COMMBANK
Make sure they give you $1250 when you settle !
@tomleonhart: i need to pay $500 to nab for cancelling as well. so $750 is bonus + less interest rate.
@tomleonhart: Is that only for new customers? What about if refinancing from existing CBA loans and borrowing a lot more?
@tomleonhart: Actually, I'd be changing the structure of the loans and cross-collateralising - so it's closer to refinancing than topping up.
@tomleonhart: i was with commbank before changing to wespac. If i change back to commbank would they treat me as a new customer?
@love2buy: this is their wording. You'll be fine.
"Until Sunday 31 July 2016 we are offering a new Refinance Cash Back of $1,250 to
customers who refinance their Home / Investment Home Loan or Line of Credit from
another financial institution to CommBank."
@elektron: Bad idea to cross collateralise, even for a lower rate. You should be looking to protect your life's work and manage your risks, even if it costs slightly more. ESPECIALLY if you're invested in apartments.
Diversify your lenders and protect yourself guys!
@kostanza: Would you mind elaborating what the risk is and what's a better alternative? Only 1 of the 3 properties is an apartment and it's positively geared.
I had to do complete opposite. I was with CBA and rate was 4.70% variable on INTEREST+PRINCIPLE. I recently switched to NAB INTEREST ONLY (with 100% offset) for 5 years and rate is 4.07% variable. Additionally I got $1500 cash back from NAB and $250 from the Agent. Also, Package fee will be $120 a year with NAB compared to $395 I have been paying with CBA. Total cost of moving was around 600 ($350 CBA + $250 other expenses). Profit of $1100 + Better interest rate + dropped EMI (due to interest only) + 70% less Package fee.
I tried to get CBA match these terms but they wouldn't do it for me and hence the switch. The only downside of NAB is, their Internet Bankig and Mobile App are not as feature rich as CBA but I preferred the savings.
Great deal! Do you have a link to the package and bonuses? What agent was this through and what was your total debt to get that rate? I think I will do the same if its available. Cheers
Hi Mate,
I went through Mayank Pankhania @ Amani Finance (Details at http://amanifinance.smartonline.com.au/about/ ).
@ddaus: Hey ddaus, what is the name of the NAB package? I can't see any home loan package @ $120 a year or was that a negotiated package rate? If it was a negotiated rate, is this for the life of the loan or for the first year only?
@Shibuya: It is the top most package they have and includes PLATINUM Credit Cards (VISA + AMEX that can earn you Qantas / Velocity points). NAB doesn't offer this rate directly to customers. I got it due to using this agent so it might be a special arrangement between the agent and the bank.
which state are you in mate? Its a really really good rate that you have got…
I am in NSW so wondering if I can access that
WA. I think it all depends on the agent and what sort of relations they have with particular banks. For example, NAB would not offer $120 annual package fee to anyone if approached them directly but I was offered due to using this agent.
how much are you borrowing with NAB?
Answered in your PM
What do you mean by offset? Sorry to be ignorant, but I am new to home loan market.
I continue to wonder what the benefit of redraw account over offset is? Is it simply the fact that the banks offer larger mortgage discounts if you choose to have principal + interest and redraw vs 100% offset?
I mean both aim to reduce the interest incurred, I just see that the principal + interest with redraw option as something that enables strict discipline with account holders, where as 100% offset can be dangerous if you are not good with your money.
Are you ANZ? if you are then you can try to change it to Owner occupied loan even through it is a investment property
Hi there, is this a thing ANZ do? Or did they accidentally overlook something?
4.26% ING (investor); there are better than that though I'm sure? I should change at least one of them…
when did you get these rates? ING current investment loans are at 4.34% and 3.88% just last month for owner occupier
I got the loan august 14. Geez 3.88 would be nice in an IP.
I'm 4.15% with CBA (1.2% off SVR, 80% loan so no LMI needed, $1M loans with offset).
Managed to haggle a friend in a similar situation to 1.25% off SVR @CBA.
Investor or owner occupier? That's pretty good from a big 4.
One of each.
How did you get both at 4.15%? I thought banks are obliged to offer different rates for owner-occupied vs investment property?
3.90% with CBA Owner Occupied. Loan is 420k. with MAV package so $395 a year.
This sounds like a fixed rate, not a variable rate.
Fully variable. Was 4.15% before the last rate drop.
Well done if so, especially on only a sub $500k debt :)
@tomleonhart: that's a good price.. I got mine refinanced a month or so ago.. My current rate is 4.1% after rate cut.
Maybe I should contact you..
Also Mebank is doing 4.09% p.a. (comparison around 4.21%) at the moment
Can I get a quick analysis?
I'm earning ~$41K after tax, spending ~$19K pa, and have a ~$20K savings.
I don't have any loans, or money owing. I have all necessary/expensive items (car, furniture, etc etc).
So the only purchase would be the house. Also no kids/wife, I'm in my 20s.
Based on your professional experience, assuming I try to buy a property by myself…
…what sort of loan can I get right now?
…how long do you think I should wait to buy a property?
Cheers Tom!
(PS I think this scenario applies to many many Gen Y/Millenials, so worth sharing)
Depends on where you are looking to buy.
If you are looking to buy in Sydney then i would say keep on saving mate, you have a long way to go…
@sam91:
Anywhere there's value. I've heard South Brisbane suburbs are (on average) increasing the best in home value.
Could be there, could be another city, doesn't matter too much.
(Except for loans, difference between investor or owner occupied?)
that is a great rate - how on earth did you get that? Through the retention team or did you get it yourself?
I am with CBA but nothing like that,
I got it for most of my clients and myself.
CBA was quite aggressive around 6 -7 months ago.
did the fact you were bringing multiple clients at once allow you to negotiate such a good deal?
do you have a book of clients who are always ready to re-neogtiate when a good deal comes along?
how do brokers make money? are you on a retainer? do you get trailing payments from lenders? does the intial fees from new clients include ongoing work like getting better deal when it is availiable?
Hi Tomleonhart,
As a broker can I ask you your opinion as which bank calculates UBER income?
I am driving for more than a year, and just wondering if that income will be calculated for my borrowing power.
Thanks.
On a side note, how rewarding has it been for you to drive Uber in terms of income? I was thinking of the same as well.
It is good. helps putting bit of $$ towards mortgage.
currently with CBA on 1.25% discount MAV, 500k loan, interested to refinance with CBA, how much further dis you reckon I can get?
That's really good rate, is it still available?
unfortunately not. CBA going rate is around 4.05% atm for OO and P&I with 80%
Ok. Thanks anyway
With Heritage Bank at 3.99%, variable, owner occupied, no fee, with redraw facility.
HSBC has a variable loan at 3.85% owner occupied with 100% offset account. Has a $35 monthly HSBC Premier fee though
Was with CBA then i switched to get a better rate and 250K velocity points
NAB, variable rate 4.07% (OO) and 4.51% for IP
will need to switch bank for my IP
Yep, just got that OO NAB deal too with offset and redraw but chose the $1500 cashback instead of the velocity points. Plus I got the 20,000 Qantas points that came with the complimentary Qantas rewards premium card. Not too shabby.
Mortgage broker just got my rate down to 3.99% v
mine is with loans.com 3.83 comparison rate. let me know if you are interested. can get share referral fee with you.
cheers
How much is the referral fee?
the referral fee is $450
yes referral please
The best rate you can get will largely be determined by the lender you want to deal with (bank vs non bank) as well as your loan size, LVR and credit profile.
If you have an owner occupied property as well as an investment property you should be able to get a 3.74%p.a. (CR 4.11%p.a.) variable rate for both your o/o and inv debt assuming a pretty average sub-80% LVR loan size (where you have good credit) from a bank and you'd get all the bells and whistles such as a 100% offset account, credit card, etc at that kind of price.
If you're borrowing $500K+ sub-80% LVR we're seeing exclusively investment products in the sub-4%p.a. range from non-banks (i.e. online/micro lenders). NB: The loans.com.au product mentioned above is not likely to be for an exclusively investment loan scenario at the quoted rate.
Hope this helps.
Yes, thank you
You're most welcome. If you're considering one of the offers mentioned in this thread (for example the Westpac 2 year intro or Newcastle Permanent Premium Plus) then please feel free to send us a PM. We actually have promotional offers on those two products at present and we're usually able to arrange discounts/rebates that are superior to what is being widely publicised.
Regardless, best of luck & we hope you find a new product/lender that meets your needs :)
The 3.74% for OO and IR - is it with one of big 4 banks?
It is with Newcastle Permanent. Although they're not a big 4 bank, they do hold a banking licence (so you're covered by the commonwealth guarantee on deposit funds) and they are the largest building society in Australia. If you wanted some further info/links please feel free to send us a PM.
We were with Newcastle Perm and only switched because we changed circumstances and asked a broker to do all the legwork for us. Wish we had chosen a better broker because all he did was get the rate and we ended up doing the rest of his job for him (ie. finalising the cheque for settlement by transferring a redraw to a bank and withdrawing by cheque ourselves! Anyway, I digress…
Newcastle have branches too (although they annoyingly got rid of the local Parramatta branch), which is handy.
How long should I stick with a lender before looking for alternatives that might be a better deal? Plus, I'd like to stop the broker from receiving further trailing commissions!
How long should I stick with a lender before looking for alternatives that might be a better deal?
In our experience, ~2 years is a good yardstick. Why? When people factor in switching costs, potential drop in credit score (by virtue of adding credit enquiries) and time spent in the refinance process (typically 2-12 weeks depending on the complexity of the person's circumstances and the lender) - switching every year is probably not going to present fantastic value. On the flip side, if you're not taking the time to re-evaluate your finance at least every 3 to 5 years, you're probably going to find that you're no longer on a sharp product (take a leaf out of your insurance renewals). Naturally YMMV and the best time to tweak your finances will heavily depend upon your individual circumstances.
If you were wanting to evaluate a move we have a mortgage refinance cost recoup calculator on our website (sorry we can't paste the think link in this thread as it's against OzB site terms for store reps to post links in threads they didn't start). Alternatively, please feel free to send us a PM. At present we have a couple of promotions running on Newcastle Permanent products and you'd likely be able to get a settlement rebate to help negate the costs of switching back there.
Hope this helps.
I recently swapped from a big four bank to Loans.com.au
I'm getting 3.81% with offset for my principal place of residence and 3.77% on my investment loan. I had the 80% LVR to get this.
Loans.com give good investment property interest rates when you package together with your principal place of residence i found.
PM me if you want more details on my experience if you have any specific questions about a user experience and I'll also be able to refer you. I've was very satisfied with the process and the product loans.com offers.
just wondering as how much income you need to show?
do they have offset for IP?
4.14 bankwest
Which loan?
Complete variable.offset…mastercard platinum
4.05% variable with 100% offset with HSBC, no monthly or annual fees.
Is this for Investment or OO?
Owner occupier.
Anyone concidered UBank? 3.74% interest rate 3.74% comparison rate. Absolutely no on going fees. I've been thing of moving my mortgage to them
Does this have an offset account
No offset account.
they have redraw though
Currently going through the process of moving to them. Haven't signed yet, but that's basically all that's left to do. The actual process has been incredibly lengthy - far more documentation required to setup than when I've done this face to face with other banks, but assuming we do press the button and switch then we will be saving a lot - currently with ANZ on 4.67% (offset, $375 per annum for 'break free' package plus $110 for 'award' membership). So saving close to $500 per annum in fees (by sacrificing some bells & whistles, plus the award side that frankly no longer matters as we mainly use the citibank card), and (if just paying off the loan with minimum amounts, which of course we won't) about $500 per month.
I was switching from NAB 4.74% fixed to UBANK. Very lengthy process and I uploaded tens if not hundreds of documetns to their website, most unhelpful staff, I never spoke to the same person twice even when I requested to, some gave me contradicting advice.
They only finance for emplyed people not self-emplyed, while my situation was a bit complex (for them) as I am both full-time emplyed and self-employed, it was apparent to me after almost 2 months that their cheaper rate was not worth their complete lack of customer service ( I felt like I was asking them for a favour at times not trying to make them business).
Now going with Bank Australia at 3.88% and $1500 broker cashback.
If your situation is simple enough for poorly-trained don't-give-a-sh!t UBANK staff to understand, it is the lowest rate I have seen in my long journey to refinance in the last few months.
A NAB guy rang me and offered 3.9% (variable with offset etc) last week when things got serious, which they haven't offered when I initially negotiated with them after the rate cut (only offered 4.1% then). Just shows banks can be pushed. I told the guy to get lost!
Good luck and hopefully you go throw less pain than I did!
Is the 3.88% with Bank Australia interest only? I recently bought a property on their premium homeloan package and now on 4.09% P&I
No it's P&I, 3.98% is the rate, down to 3.88% if you establish a savings account with them and have at least 2k deposited monthly (and pay the loan from that account).
I think my broker managed to negotiate a 0.1% discount so the 4.08% you are on seems right, but you can get it lower.
@KevinFine:
Yes, offset is optional at $8/month (instead of $5 for everyday access account) and redraw is $25 per redraw.
Its their basic home loan minus the 0.1% my broker negotiated, have a look at their website, it's not the best deal out there but it's not bad.
@BestofOZB:
Sorry just noticed you said you were on the premium package, I am on the basic plus offset account only (no credit card and other frills I don't need)
How did you get the "$1500 broker cashback" . I asked them and they said there is no such thing.
It was actually the broker that initiated it when I indicated the rate (3.88%) wasn't the best in the market.
Different banks give brokers different percsntage of your loan as a commission, which by law should be declared to you the customer, it can be as high as 1% one off (5k for a 500k loan) and smaller ongoing monthly payments too, and sensible brokers will happily share that with you to earn your business.
Some banks give very small commissions though which might be the case in your situation.
I have been using ubank for years now. Redraw is just as good as offset imho, next day turn around on releasing funds into your nominated bank account.
The Ubank Android app only lets you check the balance of your home loan, nothing else. The website is fairly pathetic, but gets the job done.
They refinance uncomplicated easy loans in a heartbeat.
24/7 Skype customer service, based in Sydney from what I could tell. Very helpful.
Sensational rate.
Redraw is not at all like offset if you ever plan to move out and rent the place when you buy your next home.
4.3 with 100% offset. will be moving to other lender with 4.07 with re-draw soon.