Got a letter from my bank and said when our fixed IO home loan expires it will jump up to either 6.09% IO or $5.69% P & I.
I know it's hard to get an IO loan now, but is it still possible to get it? And what is the going rate for it?
I hope it's not 6.09% coz I think I will have to sell it instead!
Thank you, do you mind educating me what is mutual fund and how do you get loans from them? I heard very bad things about loans.com.au so I am not sure if I would like to go down with them…
Mutual Funds, Credit Unions, Mutual Banks, - all the same. Just like a bank, apply for a loan and if they think you worthy, you'll get the loan approved.
I've never had any negative experiences with these. What bad things have you heard about loans.com.au?
The way I see, they are giving me money. As long as I pay the interest on time, there is no ongoing interaction with them. The application process may be a bit convoluted, but I think most banks application processes are convoluted as well.
Saying that, I have never applied for a loan with loans.com.au. My brother-in-law has and he never had any issue with them.
Thanks, what I heard was that they are very slow in processing paperwork, plus asking millions of questions but in the end your loan can still get rejected..
how long ago did you apply for your IO loan?
let your fingers do the searching - look at some of the comparison websites such as Cannex, etc
Thanks I will!
Big banks will also give you IO around 4.6 - 4.7%. Someone I know got from AMP at 4.49% for investment property
Also depends on the LVR. Easier to get a IO loan for a positively geared property with a 50% LVR, than a negatively geared property with a 90% LVR.
Broker here - there are still IO Investment rates in the low-mid 4s.
I can send you a summary of the options i have available and you can use those as a starting point for research and negotiation with your current lender. No pressure to use my services - just happy to help out.
Pm me if interested.
Thanks, sending you a PM now.
Shouldn't it go the other way if you change to P&I loan?
If only there is way we borrowers have a means to give STFU to all these maniacs just because they are APRA slaves.
The problem with IO at the moment is that the institutions are given the green light to jack up infinitely. Considering what has happened in the last few months, I'd say they will continue to jack it up until the Govt feels they're friendly enough (ie: Sack Anna Bligh) and remove the Bank Levy.
At best you should try to fix your IO on non-deductible loans. Check Virgin Money. If you apply quick, you could probably get 4.14% for 3 years IO with Rate Lock because next Tuesday, they will jack it up again.
why next tuesday? I thought the RBA just announced their rate unchanged….. The thing is my fixed IO rate doesn't expire until June 2018, so I am not sure if I should action now (and I am on very good rate too)
If u check virgin money website they declare next tuesday interest rate will increase 25 basis points.
They dont respect rba. They fear apra.
Can you please post the url where it says that.. trying to find it on the site.
Currently they have a fixed 2/3 year 3.99% I/o rate but nowhere does it say the 25 basis points applues to these rates - only to the variable rates.
They do have a 0.15% of amt rate lock guarantee for 100 days so that may be better than 3.99 + 25 basis points if you managed to do it by Monday..
Just want to confirm where it says it will be done on Tuesday
Thanks
No worries found it.. from 8th Aug they will introduce new SVRs fir variable rate loans. No info for the fixed rate loans though
@burningrage: I discovered this website too late, however from what I can see on virgin website, they hit you with a lot of fees if you need to make any kind of amendments, also lvr is only max. 70% if it's IO loans
Yes. That's why need to get it right first time and plan long. Also, doing it through a broker would be recommended as they know the pitfalls with this sort of lenders (ie: not big 4).
Wow!!! that is high, even for a P&I loan.
It is easy to get IO loans under 5% - just need to look outside the top 4 banks.
I am currently on 3.99% IO with a mutual fund that I negotiated the rate down to. I believe loans.com.au may also have low rates.