Zippys,
Locked in less than two weeks ago on a commercial financing deal.
Fixed for 5 years at 7.17%. Loan is a tad bigger than your amount though…scale effects – don’t know ??
It was 6.85% when we exchanged contracts with the Seller, and during the settlement process went up by 0.32%…not happy…
I’m told by my lender the rates have not increased for 4 and 5 yr fixed rates after the recent RBA hike. Variable, 1 2 & 3 yr fixed have though.
Cheers,
Dazzling
“Go hard or go home”
Dazzling,
Can you tell me who your lender is? I’ve shopped around a bit and can’t find any fixed rates below 7.7%+. I’ve tried ING, IMB, Suncorp, Westpac, Citibank, Public Trustee NSW, and spoken to 4 different brokers. Are you getting a special deal or is that what your lender is offering to the general public?
Zippys, have you made any progress in your enquiries since you started the thread?
Regards,
eeshole
Hi eeshole,
I’m with the Commonwealth Bank.
Have no idea if the rate is available to the general public.
Cheers,
Dazzling
“Go hard or go home”
na i have made no progress but will sure let you know how i go
Hi guys, can I have people’s opinion on which is the better deal?
Lender 1: $1750 up front fees, variable rate 7.7%, no ongoing fees, will lend 70% LVR
Lender 2: $820 up front fees, 1yr intro rate 6.99%, thereafter std variable 7.8%, $35/mth a/c keeping fee, will lend 66.67% LVR.
Given a lend of 66.67% in both cases, I figure you will get an advantage of about $1500 with Lender 2 at the end of year 1. Thereafter Lender 1 cathes up about $550 a year until the end of year 4 at which both will be lineball. Thereafter you will continue to be ahead with Lender 1 each year.
This assumes current interest rates will stay as they are, for the purposes of the calcualtion.
Which looks better to you?
Thanks, eeshole
Intro rates are often followed by high deferred establishment fees in the first 5 years or so.
The answer would depend on how long you intend to stay with the lender. And just remember, things change so you may want to move sooner than expected.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You need to find out what the break/early repayment/exit fees are for each loan. Without this information it is impossible to make an educated decision. For example, if lender 1 has no exist fees and lender 2 has large exist fees then I would lean towards lender 1. Find out what these fees are.
Cheers
Stu
Stuart,
Lender 1 has no exit fees after the 1 yr intro period.
Lender 2 has $1800 in the first year, $1200 in the second year, $800 in the third year, then nil after the end of the third year.
I think Terryw made a good point. Things change. Lender 2 may not always have a lower variable rate than Lender 1. After the 1st year, I may be able to negotiate the monthly fees down. It’s probably not wise to make decisions based on long term assumptions that you have no control over. I suppose the pressures of competition will ensure that the two lenders’ variable rates will always be close to each other.
Better to take the $1500 saving in year 1 rather than hang out to slowly recover it over 3-4 years.
Thanks for all the replies.
eeshole
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