Suncorp 3Yr Fixed Rate Investment Home Loan 3.99% - Interest Only (CR 4.50%) from Major Lender + $500 Cashback @ Obtain Finance

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Store RepObtain Finance on 06/08/2018 - 19:08 obtainfinance.com.au (261 clicks)
Last edited 08/08/2018 - 18:32 by 1 other user

Highly competitive interest only, fixed rate Investment Home Loan from Major Lender with $375 annual Package Fee (waived in 1st year). Message us through Ozbargain or email [email protected] or speak to us on 02 8091 5797 for further info about this deal and other special home loan offers available.*Cashback of $500 is being offered by us payable within 30 days after settlement. Minimum loan size for cashback to apply is $300,000.

Fixed Term	Interest Rate	Comparison Rate
3 Years	3.99%	4.52%
5 Years	4.29%	4.62%

Application Fee	Annual Fee	Discharge Fee
Nil	$375 (Waived in 1st Year)	$350

Note that as this is a fixed rate home loan, with this lender you can make up to $500 a month in additional repayments during the fixed rate period without incurring prepayment fees or economic costs.

Credit License: 506992

Comparison rates are based on a loan of $150,000 over a term of 25 years. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.comparison rate. Rate current as at 06/08/2018. Loan is subject to satisfying lenders credit critera. Speak to us to see if this is a suitable loan for you from our large panel of lenders

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• 

  RubenM on 06/08/2018 - 20:57

  Not really a bargain.
  Also, it's only a 25 year loan, so if the IO period is 5 years, you'll be in for some pain paying back the principal in just 20 years!

  • 

    mr_fjackson on 06/08/2018 - 22:01

    Then you just refinance again in 3 or 5 years.

    • 

      RubenM on 06/08/2018 - 22:25

      Post APRA, I no longer quality for new loans. Further tightening is possible, meaning that people could be in the same situation after the 5 years IO period.
      Just FYI, once the 5 year IO period is up, your repayments would jump 82%!
      Or from $3325 per month for a $1M mortgage to $6055, which is a huge difference.

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  chefdillu on 06/08/2018 - 21:11

  Isn't it unethical to pay cash back from broker commissions ?

  • 

    RubenM on 06/08/2018 - 22:26

    Why? My mortgage broker gives me cashback for every loan.

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  wozz on 06/08/2018 - 21:57

  +1

  Don't you have to advertise the comparison rate at least as notable as the interest rate. I didnt think you could write "interest rate" then for comparison rate just write "cr"?

  I'm no expert, hopefully someone else can clarify

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  Sofie519 on 07/08/2018 - 00:43

  When u take up a fixed rate loan, always check what the lenders standard variable is, as that would be the rate it reverts to after the period. You do not automatically get reverted to their discounted rate (e.g. suncorps other offer is discounted variable at 4.19% for investment).

  Currently suncorps standard variable without discount is 5%+ so in 3 yrs time the standard variable rate may force you to seek refinance if lender isn't willing to reduce their rate. (Another upfront commission for the broker, including other fees and charges you incur in 3yrs time).

  Sometimes timing of refinance may not necessarily be right for the borrower (e.g. loss of job, harder lending criteria, value of property drops and U need to pay LMI etc). Hence a lender, offering say 3.97% variable with no annual fees and offset account for an investment loan, may be a better option, as U don't need to go through assessment again in 3 yrs time. Yes Ur rates may go up, but they may also go down, considering falling house prices,

  Why then would anyone choose fixed rate loans? If you are tight on budget and a rise in interest rates would impact Ur standard of living or cause financial hardships, then it would be prudent to fix for surety of repayments .. each persons situation is different.

  Just don't be automatically enticed by broker Or lender cashback offers, it may end up costing the borrower more. Discharge, title fee's legal fees etc would already place any possible savings or incentives either at break even or in doubt. Some people also pay the lazy tax for months and forget to refinance in time, paying months at higher rates.

  • 

    Slo20 on 07/08/2018 - 05:29

    Currently suncorps standard variable without discount is 5%+ so in 3 yrs time the standard variable rate may force you to seek refinance if lender isn't willing to reduce their rate

    You would be signing up to the package so you wouldn’t be getting the variable rate without the discount.

    • 

      Sofie519 on 07/08/2018 - 06:30

      I meant in 3 yrs time it automatically reverts to their standard variable rate (currently 5.32%), not any of their discounted variable offers. In 3 yrs time their standard variable will almost certainly force the borrower to refinance. So once you factor in time and cost, just ensure it is worthwhile.

      So many people are currently caught between a rock and a hard place as their fixed discounted rates or IO loans are revert to standard variable, and with the tighter lending criteria or job changes, are unable to refinance.

      https://www.ratecity.com.au/home-loans/mortgage-news/honeymo…
      Please consider this article as an example of what I'm trying to ask fellow ozbargainer to consider prior to considering fixed honeymoon rates.

      Choose fixed rates if you CAN NOT afford for interest rates to go up (e.g. first home buyer who has never experienced repayment responsibilities, couples expecting a new child, may plan for employment changes etc), and would rather forgo any potential rate cuts for certainty in repayments. You should also be reasonably confident in your expected job and income security in 3 years time

      • 

        Slo20 on 07/08/2018 - 06:35

        I meant in 3 yrs time it automatically reverts to their standard variable rate (currently 5.32%), not any of their discounted variable offers.

        That’s still not correct. By paying the annual fee for the home package plus you will be reverted to the discounted variable rate.

      • 

        Sofie519 on 07/08/2018 - 07:03

        @Slo20: ok