LOWEST.EVER.
UPDATE 29/3/2020: We have responded to all enquires and back to 1-2 day turnaround time. Sincere apologies for the extended delay for response increasing from 2 to 5 business days (sometimes longer) as we did not expect to receive so many enquiries and also faced disruptions with our staff transitioning to work from home arrangements this week. Thank you for the feedback and although unpleasant to hear, it was necessary as we completely understand the frustration. It has been a learning process for us and we will change our processes in future, such as communicating our extended service levels to the OZB community so that customers are informed for decision making.
If it's an urgent purchase or fixed expiring, pls write "URGENT" in subject or text and we will contact you ASAP. Thank you for your patience.
ING Fixed
2.09% (CPR 3.77%) owner, fixed 2yrs (Orange Advantage Package only. +0.1% under "Basic" Mortgage Simplifier no annual fee)
2.64% (CPR 4.41%) investor, fixed 2yrs (avail "Basic" Mortgage Simplifier no annual fee)
2.79% (CPR 4.99%) investor interest only, fixed 2yrs (avail under "Basic" Mortgage Simplifier no annual fee)
Available under Mortgage Simplifier - no annual fee, no offset.
Can be split with variable 100% offset if you add Orange Advantage package, including offset account, redraw, credit card. Annual fee $299.
ING variable rates "Basic"
2.74% (CPR 2.77%) owner occupied P&I (>$1m)
2.78% (CPR 2.81%) owner occupied P&I (>$150k)
3.19% (CPR 3.22%) investor P&I (approx +0.4% interest only)
Mortgage Simplifier - no annual fee, no offset, free redraw
ING variable rates "Package"
2.79% (CPR 3.13%) owner occupied P&I (>$1m)
2.83% (CPR 3.17%) owner occupied P&I (>$150k)
3.24% (CPR 3.57%) investor P&I (approx +0.4% interest only)
Orange Advantage Package 100% offset $299 annual fee
Total Fees eg NSW & VIC incl GST
https://www.nswlrs.com.au/getattachment/
https://www.propertyandlandtitles.vic.gov.au/
Mortgage discharge fees $143.5 (NSW), $116.80 (VIC)
Transfer/Mortgage Registration fee $143.5 (NSW), $116.80 (VIC)
Title search $14.70 (NSW)
Legal/settlement fee from incoming lender – Approx $100-$350
Discharge admin fee from outgoing lender – Approx $250-$350
Total fees approx $650 - $800 in most cases.
PLUS 0.3% Bundle Rebate (via Bundle Property Home Loans only)
In ADDITION to bank rebates (if any), Bundle Home Loans gives a rebate of 0.3% of loan size (net at drawdown) for ANY bank or product.
Why should I fix?
A low fixed rate can still save you more money as you can get an immediate benefit from today as opposed to waiting for the drop to occur. RBA has announced they will likely not move rates again.
Always worth doing a calculation for your situation, eg:
If you have an existing loan and your rate is 3.18%, fixing at 2.68% will save you 0.5% each year.
On a $500k loan, that is a saving of $2500 every year.
If you're saving 0.5% and go with a lender giving rebates eg Westpac $6,000 for 2 properties, plus our Bundle Rebate of $1,500, that's a further $7,500 in rebates, plus $2,500 interest savings, you are getting a benefit of $10,000 in just one year!
Len
Bundle Property Home Loans
T: (02) 9698 7186
M: 0422354868
E: [email protected]
ACL 445947
Disclaimer:
The information provided is for general education purposes only and is not intended to constitute specialist or personal advice. This has been provided without taking into account your objectives, financial situation or needs. Because of this, you should consider the appropriateness of the advice to your own situation and needs before taking any action. It should not be relied upon for the purposes of entering into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy.
I'm sure we will get a comment about the high CPR:
There is a common misconception that lower comparison rates CPR will save you more money and better than a higher CPR - not necessarily and can actually be the opposite, here's why:
- ""Comparison rates"" were invented by the government to reflect lender fees over the life of the loan.
- It is based on a loan size of $150k over 25 years. If your situation is not that (which are actually most people), then the CPR is actually misleading and can cost you more money.
- If your loan is larger than $150k, then it is usually better for you to pick a lender with a lower ACTUAL rate (even if the CPR is higher) as it will save you more interest each year. Of course take into account all the fees eg $395 annual fees, which may be less significant for a larger loan size.
For larger loans, a lower ACTUAL rate (with a higher CPR) is often better than a higher actual rate (with a relatively LOWER CPR).
- Hence CPR can be misleading and a lower CPR can be more expensive than one with a higher CPR but has a lower ACTUAL rate. The correct approach is to look at the ACTUAL rate plus all fees involved, rather than the CPR.
The CPR for big 4 look high for a few reasons:
1. It incl the $395 annual fee x 25 years = $9,875. This extremely high amount is included in the calc of the CPR for a $150k loan hence greatly inflates the CPR of such a small loan to make the rate appear higher than it actually is. It is actually not a huge amount over 25 years relatively speaking (equiv to 0.1% rate difference on a $395k loan size)
2. The fixed CPR is even higher due to after fixed period, it defaults to a higher rate with no discount. In reality, we can always negotiate a competitive discount on variable after expiry of fixed.
3. Smaller online lenders have low CPR but often has up $2,000 in application, valuation, legal, discharge fees (which is negligible over 25 years hence the low CPR, but you get hit at every transaction/refinance. The smaller lenders have a lower CPR as they have no annual fee, but often a large upfront/discharge fee. The CPR is a very misleading number and small lenders using a low CPR look better than larger banks even though it may be the opposite.
4. For ING the basic Mortgage Simplifier CPR incl a $400 application fee, but it is actually waived.