Forums / Property Investing / Help Needed! / So what rate interest rate are you getting

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  • Profile photo of propertyboypropertyboy
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    @propertyboy
    Join Date: 2008
    Post Count: 216

    I have $1.1m in debt.

    Three seperate investment property loans.

    The current interest rate I am getting is 6.96%

    Is anyone getting a better rate than this at the moment?

    Could I renegotiate a better rate or am I getting the best out there on the market at the moment?

    Just want to know if I should devote time to refinancing or not.

    Profile photo of number 8number 8
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    @number-8
    Join Date: 2010
    Post Count: 333

    I have heard of better, but not sure you would go to the pain just to save a few dollars…. That is a "No to refinance" from me, unless you can get another property out of it, capitalise your interest/ expenses or create a buffer for further acquisitions. But deifnitely not to save a few dollars….

    http://www.birchcorp.com.au

    Profile photo of luke86luke86
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    @luke86
    Join Date: 2010
    Post Count: 470

    Better than my interest rate- I am paying 7.1% with Commonwealth Bank. But I have easy access to equity via Lines of Credit so I am happy with my deal at the moment. I probably should shop around for a better deal, next IP I will be talking to a broker.

    Luke.

    Profile photo of streamlineinvestingstreamlineinvesting
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    @streamlineinvesting
    Join Date: 2010
    Post Count: 171

    My interest rate is about 6.88% with BankWest, however that is just a basic P+I Home Mortgage. I believe it is on some discounted rate for a few months yet where it will probably shoot up eventually.

    Will try to refinance in a couple years and see what the best rate going around is at that time.

    James

    Profile photo of luke86luke86
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    @luke86
    Join Date: 2010
    Post Count: 470
    streamlineinvesting wrote:
    My interest rate is about 6.88% with BankWest, however that is just a basic P+I Home Mortgage. I believe it is on some discounted rate for a few months yet where it will probably shoot up eventually.

    Will try to refinance in a couple years and see what the best rate going around is at that time.

    James

    You will probably be up for some hefty break fees if you are on a honeymoon package. The banks usually load up the break fees on honeymoon packages to stop you from taking advantage of the discounted rate in the first few years and then switching lenders as soon as the discounted period finishes.

    Luke.

    Profile photo of streamlineinvestingstreamlineinvesting
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    @streamlineinvesting
    Join Date: 2010
    Post Count: 171
    luke86 wrote:
    streamlineinvesting wrote:
    My interest rate is about 6.88% with BankWest, however that is just a basic P+I Home Mortgage. I believe it is on some discounted rate for a few months yet where it will probably shoot up eventually.

    Will try to refinance in a couple years and see what the best rate going around is at that time.

    James

    You will probably be up for some hefty break fees if you are on a honeymoon package. The banks usually load up the break fees on honeymoon packages to stop you from taking advantage of the discounted rate in the first few years and then switching lenders as soon as the discounted period finishes.

    Luke.

    You are correct, but when it comes time to possibly refinance, I will just look at all the options available. Same as I did at the start with some spreadsheets and including all the fees and rates and see which one comes out the best.

    Profile photo of luke86luke86
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    @luke86
    Join Date: 2010
    Post Count: 470

    Ok, hopefully you come out in front. 6.88% is a great rate, I wish CBA would give me that!!

    Profile photo of pinkboypinkboy
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    @pinkboy
    Join Date: 2010
    Post Count: 49

    My current rates vary from 7.16% to 7.36% at the Bank Of Qld. I’m not phased by rates, I know I can do heaps better, but my time vs saving works out to probably a little lower. I have an excellent relationship with our bank manager (wifes best friend, also our daughters are best friends in the same class at school), whom I can call/email at anytime, basically gives free financial advice, and looks over our investments analytically with us to make them happen.

    pinkboy

    Profile photo of god_of_moneygod_of_money
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    @god_of_money
    Join Date: 2008
    Post Count: 971

    ANZ Breakfree Package = 6.94%

    Profile photo of lbluedentolbluedento
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    @lbluedento
    Join Date: 2009
    Post Count: 98

    7.1% here from both Bankwest and ING.

    Profile photo of CorieCorie
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    @corie
    Join Date: 2009
    Post Count: 113
    luke86 wrote:
    Better than my interest rate- I am paying 7.1% with Commonwealth Bank. But I have easy access to equity via Lines of Credit so I am happy with my deal at the moment. I probably should shop around for a better deal, next IP I will be talking to a broker.

    Luke.

    Luke you should look at trying to get onto Commonwealths wealth/professional  package. I just spoke to them and I was on the same as you(7.1%) but they have put me onto the wealth/pro package and my rate is now at a 0.8% discount on the standard variable rather than the 0.7% that I was originally on. This 0.7%rate only lasts for 3 years.

    The wealth package has an annual fee of $350 but it doesnt matter how many loans you have in the package. Another thing to mention is that there is normally a switching fee of $300 per loan but the bank is waiving these fees until June 2011.

    Definitely worth a look.

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Most lenders are offering you upto $1000 to switch your loan across so we have been flooded with refinance applications.

    Sub 7% isnt too hard to achieve. Few lenders will waive package fees (or in fact dont charge any in the first place) so depending on where the property is located the Registration / Transfer Accounts etc could be fairly minimal.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of crustycrusty
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    @crusty
    Join Date: 2010
    Post Count: 127
    god_of_money wrote:
    ANZ Breakfree Package = 6.94%

    ANZ might have low rates, but can be very costly as they are  the hardest bank to get new finance from if you want to snap up those bargains. Saving a few measly dollars in interest can cost you  hunreds of thousands in lost  opportunities You need a bank you can ring up and say I need  X dollars to buy Such and such and get the answer the next day and honour their commitment.

    Profile photo of god_of_moneygod_of_money
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    @god_of_money
    Join Date: 2008
    Post Count: 971
    crusty wrote:
    god_of_money wrote:
    ANZ Breakfree Package = 6.94%

    ANZ might have low rates, but can be very costly as they are  the hardest bank to get new finance from if you want to snap up those bargains. Saving a few measly dollars in interest can cost you  hunreds of thousands in lost  opportunities You need a bank you can ring up and say I need  X dollars to buy Such and such and get the answer the next day and honour their commitment.

    I don't have problem refinance with ANZ. I just borrowed more from my existing equity early last year and there was no problem at all.

    Profile photo of god_of_moneygod_of_money
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    @god_of_money
    Join Date: 2008
    Post Count: 971

    Has anyone got any issue re: finance with ANZ?? Just for curiosity

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Just done a 90% top-up for a client with ANZ. They were able to cashout $70k to go towards a 95% lend on there next PPOR. There were no dramas.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of CorieCorie
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    @corie
    Join Date: 2009
    Post Count: 113

    We had quite a lot of trouble with ANZ. We refinanced with ANZ and got a line of credit in the process and that was all fine. All in my wifes name. The two loans we refinanced were meant to be interest only but we noticed there was something wrong once we started making repayments.

    My wife rand them and pointed out the error and they said she would have to go into a branch. No worries. What we didnt give much thought to was the fact that my wife was now 7 months pregnant and it was quite obvious. The branch manager took one look at her and knew that she was not in a capacity to earn much money, if any.

    To cut a long story short they refused to put her onto interest only because she didnt have a job, or wouldnt for much longer in her case! So basically she didnt earn enough to pay less money in repayments!! So she had to stay on P&I untill she was back at work full time.

    ABSOLUTELY RIDICULOUS!!!

    And for that reason we dont want anything to do with the ANZ!
     

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
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    Post Count: 5,069
    Corie wrote:
    So basically she didnt earn enough to pay less money in repayments!! So she had to stay on P&I untill she was back at work full time.

    ABSOLUTELY RIDICULOUS!!!

    And for that reason we dont want anything to do with the ANZ!
     

    Hi Corie

    Yep, I can understand your frustration. Crazy scenarios like that leave us shaking our head all the time.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of crustycrusty
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    @crusty
    Join Date: 2010
    Post Count: 127

      ANZ  lending criteria is ridiculous, I would question the competency of any broker who would recomend them. They would sooner lend money to some-one who relies on keeping some low paid crappy job who is struggling to pay their living expenses, and no assets , then some-one who s income is 8X the average wage,but has no job even when they hold titles for 3 unencumbered properties.    Yet almost any other bank will say we will lend over 1million as you are in a very strong financial position and dont need  the  co-lateral the ANZ  has.  They also steal money from your  account , increase interest rates above what is agreed  when you complain they will lower it again for afew months then slowly sneak it up again in small increments, overcharge for fees promise to pay it back but never do.  If you want to work at some crappy job for the rest of your life bank with ANZ, they will try to tie you up,try to put you in a barrel, make it difficult for you  to move then charge you higher rates and fees.  They dont understand  how investing works or buisness for that matter.   Any way I suppose it is hard for some-one who has to work for their income understand you dont need a job to produce income, or they wouldnt be working in the bank any way. Catch 22.

    Profile photo of Tracey BTracey B
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    @tracey-b
    Join Date: 2009
    Post Count: 158

    We have banked with ANZ for 20 years and a few years ago due to ANZ criteria being so restrictive moved our lending to RAMS where we are still below 7%.  We also borrowed some from NAB which is at 7.1%, 
    Last month we needed about a mil for a block of units and the ANZ manager was by far the most responsive and their criteria seems to have relaxed a bit so we have gone back with them for this deal.  I've also had discussions with them for the next one where the vendor will be leaving funds in the deal for six months and they are even able to understand that situation.  I think it depends a bit on the person you deal with and at the moment our bloke understands what we're working towards and is willing to work with us.
    Every time I have approached Commonwealth Bank (even going back to when I was 17 for a car loan) I have found them unbelievably ridiculous.

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