Hi, can anyone suggest the best IO loans that are available. Looking at borrowing around $420k for property in QLD.
I am about to get a IO loan on an investment loan and would like to know who investors are using at the moment.
also do they all allow the IO loan to continue or is there a limited time period?? I keep hearing 5 years is the limit for some.
Thanks in advance.
Sam.
Hi Sam
There’s a few variables that determine what’s “best.” For a low LVR, Homeside can be a good option, for investors with lean borrowing capacity, AMP can be good. What’s best ultimately depends on the applicant(s) situation and the security on offer.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
It depends on your security and purpose…that will determine who the “BEST” lender is for “YOU”.
But just to answer your question, 5 years interst only is the most common becasue that’s what the big 4 offers. However there are more banks out there then the big 4… SO here a quick run down for the interest only loans for IP:1. CBA- interest only 5 years then reverts back to P and I , 90% LVR max IP
2. Suncorp- interest only 5 years then reverts back to P and I , 95% LVR max IP
3. BMM – Interest only up to 10 years, 95% LVR
4. ING = 5 years interest only, but allows up to 7 years for existing ING cust.
5. Bank SA and Adelaide bank = 3,5,7,10 years interest only.We can go on forever….so it depends what are you really after??? If your using a broker- just ask her/him.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Thanks guys.
Michael thanks for your list. I really wanted to know if there is a popular choice for investors out there that everybody uses or if as you have done compare all the major and minor lending companies and choose the best one for me ??
Does anyone know about Advantage – thru Club Finance (NAB) ???
Sam.SamAus wrote:Thanks guys.Michael thanks for your list. I really wanted to know if there is a popular choice for investors out there that everybody uses or if as you have done compare all the major and minor lending companies and choose the best one for me ??
Does anyone know about Advantage – thru Club Finance (NAB) ???
Sam.In the last 1 year, the most popular interest only i have put through has been NAB. Good rates, big bank, ok service, branch access. and 5 years interest only.
But NAB doesn't suit everyone; but if your situtation is not complex and stright forward- why not.
Advantage- thru NAB = NAB in 2005 i think bought Advantage, but be aware it's still a "seperate" enitiy- meaning rate can still go up without NAB autho and the company can still buckle; having said that No bank/CU really goes "bankrupt" it just gets sold off
Still safe, lower rates becasue no branch access/ overheads. – give them a go.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
ANZ are also 10 years i/o
I think the advantage product is quite good – for low LVR deals especially – currently 6.88 for anything less than 65% LVR. There line of credit is equally as competitive at 7.03%. They also have no application/ongoing fees. They don’t offer an offset which is a bit of a bummer.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Jamie my mail is that is on the way this year.
I do a lot with Advantedge and think the product is very competitive, credit are excellent to deal with and with the ownership and funding from the National Australia Bank have absolutely no issue in recommending them as a lender.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Where can I find information on Advantedge product. Been looking online but nothing can be found.
JAMIE M – You mention they have no application/ongoing fees – but I have been quoted $350 PA for this premier account !
Is that right ???
Sam.
Should be $0 application and $0 ongoing. That's what I get through my aggregator.
Here's some info – http://www.choicelend.com.au/products/index.htm
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
no app or fee if you go through a broker only…. as direct client the bank have to do the paper work n chasing up etc….
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
I didn’t realise there was a direct option.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Advantedge own 3 Aggregators being FAST / Choice / Plan and offer their product through these member brokers.
I Aggregate through FAST so to see what FASTLend have to offer have a look at http://www.fastlend.com.au
No Application, valuation or lenders legals. No Title insurance, no monthly or ongoing fees.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Sam
Just in case things seem a little confusing because of all the names being thrown around, the general consensus is that the advantedge product (however it’s dressed up) is generally a good one and it should cost you nothing upfront or on an ongoing basis (at present).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Well with the NAB this morning annoucing their aggressive stance on refinances away from CBA / Westpac i have a feeling it will last for a little longer.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Excellent – I hope it does stay around for a while.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I heard that on the radio as well..do you think it will apply to homeside as well?
Regards,
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Let’s hope so. If that’s the case, I’ll move some of my own loans over.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks guys for all your comments.
Club Finance is the reseller that I have been speaking to and they are mentioning annual fees of $395.
Will need to confirm this, but based on all your comments this is not right.
Sam
Hi Sam
Does sound weird. I can’t speak for the company you mentioned but if the mortgage broker aggregates through either Choice, Fast or Plan then this fee shouldn’t exist.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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