I recently purchased an investment property and am finalizing the finance. With IP's + PPOR, total value is $1.3M with $650K equity and $650K finance.
What sort of interest rate is reasonable? My CBA lender is saying 3.40% is what I can probably get with them. I've seen as low as 3.09% advertised, but not sure how much higher I need to pay due to having investment properties.
Fixed/variable? P&I/IO? Context!
Variable rate - P&I
The bank pays me!
Finalising
When we queried the big 4 about lower rates they specifically mentioned the lowest ones on the market, ie. those under 3.2% are typically for owner occupiers not for investments.
The ones you see advertised under 3% are probably short term fixed rates.
Nonetheless they did give us a discount due to significant borrows and other sweetners due to our relationship with them so they nudged to to 3.45% around July.
So 3.4% sounds like a pretty good deal assuming investment P&I.
What's my mortgage and what's reasonable are 2 different things. 3.4% sounds perfectly reasonable.
You've edited the title and now my comment doesn't make any sense :(
To answer your original question, we sold our owner-occupier house and bought 2 properties and were 'allowed' to keep the same mortgage rate of 3.1%
Broker here.
3.40% variable for an investment loan with a major bank is a very decent rate.
What about variable interest only, investment loan 500k? ANZ gouging me with 4.14% =<
About 0.5% cheaper at a non bank lender like homestar finance.
Best variable interest only investment rate I have is 3.39% with firstmac.
I have a few other non banks at similar (ish) rates, each have their own policy niches.
I've seen as low as 3.09% advertised
Probably on an owner-occupier loan.
3.4% on an IP is pretty good.
What about Interest Only?
As per my comment above, the best variable / interest only / investment rate I have is 3.39 with Firstmac.
3.4 for IP sounds right