Owner occupied P&I <70lvr (+0.1% for <80lvr)
Fixed 2 years from 5.39% (CPR 6.02%)
Variable from 6.14% (CPR 6.16%)
Investor P&I <70lvr (+0.1% for <80lvr)
Fixed 2 years 5.55% (CPR 6.21%)
Variable from 6.34% (CPR 6.36%)
No annual fee for life of loan.
Offset available on variable portion/split with package fee.
PLUS Broker rebate (NOT affiliated with Macquarie Bank) up to 0.3 - 0.4% eg $4,000 for a $1m loan size broker rebate per net loan for any lender (available via broker only, not via the bank. T&Cs apply). e.g:
$400k x 0.3% = $1200
$700k x 0.3% = $2100
$1m x 0.4% = $4000
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 a drop.
Always worth doing a calculation for your situation, eg:
If you have an existing loan and your rate is 6.39%, fixing at 5.39% will save you 1% each year.
On a $500k loan, that is a saving of $5,000 every year.
If you're saving $5,000, plus our Broker Rebate of $1,500, you are getting a saving of $6,500 in just the first year.
Contact us for this deal plus our broker rebate (NOT affiliated with Macquarie Bank)
Please email us at first instance and we will reply ASAP. Missed calls and OzB messages may get delayed. If you don't get email reply within 24-48hrs (some emails go into our spam), pls call us or text us.
Len
Bundle Property Home Loans
[email protected]
www.bundleproperty.com.au
M: 0422354868
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.
Regarding Comparison Rates (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 which is irrelevant for most customers. The CPR is actually misleading and can cost you more money.
- If your loan is larger than $150k, then it is better 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 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 may be high for a few reasons:
1. It may incl the $395 annual fee x 25 years = $9,875. This extremely high amount is included in the calc of the CPR for a relatively low $150k loan hence greatly inflates the CPR of such a small loan to make the rate appear much 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. Also customers refinance after 2-3 years and never stay for 30 years at the same bank.
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.