Hey people,
I was wondering your recommendation on fixing my home loan rate. Currently on 4.11 with multiple offset accounts. Looking at fixing at 4.06 for 2 years which includes multi offset accounts. I've been told rates will start going higher end of the year by a few work mates. Just wondering your thoughts.
Thanks
Eh, it also locks you in to keeping your loan with them for a minimum time, generally there's a sweet spot of 1-2 years where its well below the standard variable rate so unless it drops a lot you should win
Currently on 4.11
Step 1 should be a visit to your local branch to ask for a discounted rate, effective immediately. You're paying too much. You will be surprised how easy it is to get a lower rate if you just ask (by increasing your discount off standard variable).
Then once you have a new lower rate sub 3.75% you can consider fixing. At least then you will have the right starting point for comparison
I'm with CUA they won't discount. I have tried
Apparently that's the diff between credit union and big 4 banks you can't nego
I tried asking the CBA to match ME Bank when I was mortgage shopping. They refused.
That's matching another supplier. If you've held a mortgage with a bank for a few years you can walk into a branch and ask for a discounted rate. Of my friends and family who have asked not one has been turned away.
Investment or Owner occupied? Interest only or P+I? if investment and interest only then your current deal is pretty good. You generally cannot have 100% offset loan on a fixed rate for obvious reasons
Owner occupied p and I
which bank has multi offset accounts, this is cool
CUA we have five accounts they all offset. That's why my interest is higher
I have up to 99 offsets with St George. Currently have 7 across 3 names
I would never fix a home loan. Too many horror stories of people ending up far worse off - higher rate and huge exit fees.
By the way, I'm with CBA, have multiple offsets and are currently paying 3.77%. Owner occupied as well.
Do u have any fees?
Package fee of $395.
However, my broker gives me back a cheque 0.15% of the loan amount every year, which more than covers that fee. PM me if you would like more details.
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Can you PM me the details? I've allowed PM's…
Damn thats good! I am on 4.3% with CBA and also paying a package fee of $395, never had a cheque back like that..
Any chance you could PM me the details as well
Hi,
Can you PM me as well i am interested. Thanks
could you please PM me the details too.. Thanks
Could you PM me the details too please? Thanks
What's your LVR? The rate depends on the LVR as well.
wow! thats a great package. CBA didnt even come up in my brokers list for suggestion :(
When did you get the loan? I am trying to get with CBA and i am getting 3.92.
I am not good in negotiations :(
Is the 3.77 P&I payments?
can you PM me?
What is your borrowing amount? Also I am 99.9% sure this was originated around 9-12 months ago when CBA was discounting heavily. Would that be right?
Sub 4% on P&I is doable with all the majors on o/o (except maybe Westpac) at the moment.
this is likely a silly question.. why would you need multiple offset accounts? what's the benefit?
I think it's habbit that we have a few accounts. I have an account , wife has one , than we have joint one, kids accounts. It's made a difference I guess reducing interest
I've got 3 additional offset accounts apart from my main transaction account for three different reasons:
The best i have got till now is a deal of 3.9 (fixed for 2 yrs or variable) with 2 yrs package fee waived and $250 cash back at 90% LVR.. negotiation in progress.. now seeing the 3.77, looks like i need to work hard
Personally, I think that the rates have been the lowest ever, and at some point, it will probably go up. Fixing is more suitable for risk-adversed people who prefer the certainty of repayments, so you should consider why you are looking to fix.
If you are happy to refinance, then there are some good fixed rate deals around. I work for a comparison site, so I had a quick look on our site for you. I have set the results to show all products in our database with 100% offset accounts.
RateCity Fixed Rate Loans with Offset Accounts
I should add that RateCity doesn’t lend money or provide financial advice – just the information you need to make an informed decision. We make money by displaying advertising on our website, and we are also paid for generating leads for financial institutions.
Best fixed offer that I am doing for a lot of clients at the moment is with a BIG 4 bank (can not state the name as it is not advertised and selected broker only offer)- 3 year fixed @ 3.99% p.a plus $1500 cashback. This applies to investment as well, but it has to be P&I repayment. The way I look at it is…how much principle can you really repay on a 30 year loan term? (in regards to tax deductibility) :)
In terms of 2 year fixed Unibank is solid at 3.94% p.a and it comes with a 100% off-set. ANZ and NAB are both doing 2 years @ 3.98% plus $1200 cashback or 350,000 NAB Reward points (worth around $1700). O/O only and ANZ is the better option as you can pre-negotiate the discount that the loan will revert to in 2 years.
I strongly suggest speaking to a reputable broker and discussing your short/medium and long term strategy and what additional repayments you can realistically make per annum on your mortgage (maybe: me me me :)). If this is over $20,000 in extra repayments then a split loan might not be a bad option. This will give you the best of both world- variable and fixed.
question is how or where to do we find these reputable brokers?
This is when all the mortgage brokers on OzBargain starts promoting themselves.
Personally, I will alway consider a personal recommendation. Ask your friends who they used and how the experience was. If your friends are willing to recommend someone, then chances are, that its likely to good. There are many things that can go wrong in the mortgage process, but a good broker will be able to manage the relationship with the client, so that despite the hiccups, clients walk away with a positive experience.
If you want to go to an established brandname, you could go to something like Mortgage Choice, Aussie and Loan Market. But it would be completely up to chance if you get a good or bad broker.
Online reviews are useful. Unless you think that the reviews are not genuine.
100% agreed. Word of mouth is the best source for recommendations. However, sometimes lenders can affect service beyond the brokers control (e.g slow turnaround times due to a strong promo rate, inability to access property for valuation…etc)
With refinance (As it is generally not time sensitive like a purchase) it is a lot easier.
You are betting against the banks when you fix, you will lose.