What IR are you paying?

Viewing 9 posts - 1 through 9 (of 9 total)

amyhunz
Participant
@amyhunz
Join Date: 2011
Post Count: 64
February 17, 2012 - 3:25 am
Hi all,
Meeting with our lender next week to discuss upgrading our borrowing to finance a PPOR. We currently own two IPs but lending is sub $500k.
Total new lend would be around the $700k mark.
What variable rates are ppl paying on a similar lend (and who's your lender)?
Thanks in advance.
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
February 17, 2012 - 6:40 am
The pricing discount on offer will also depend on your overall LVR and the current structure of your existing loans.
The banks aren't as competitive as they were even a month ago.
As has been mentioned a heap of times in the past – it's not always about rate. There's so much more to consider.
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]
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
February 17, 2012 - 8:07 am
At that level probably paying around 6.35% post lender increase this week.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
amyhunz
Participant
@amyhunz
Join Date: 2011
Post Count: 64
February 17, 2012 - 10:13 am
Thanks for that Jamie and Richard. Currently on 6.52% with a lend of $425k so would expect a rate around what Richard's quoting for a lend of $700k.
Would you keep the structure the same? Currently both IPs are offset with IO. Would you do P&I for the PPOR if we have no intention of converting it to an IP in the future?
Cheers
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
February 17, 2012 - 10:30 am
No point having/paying for those offset accounts against the IPs when there’s a PPOR in the mix.
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]
amyhunz
Participant
@amyhunz
Join Date: 2011
Post Count: 64
February 17, 2012 - 10:33 am
What are you suggesting then Jamie? So you're saying just have the offset against the PPOR paying P&I and leave the IPs as IO loans?
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
February 17, 2012 - 10:38 am
Yes exactly but make sure you dont cross collateralise the 2 loans.
6.52% will no doubt be 6.62% post last weeks rate increase.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
amyhunz
Participant
@amyhunz
Join Date: 2011
Post Count: 64
February 17, 2012 - 10:43 am
Thanks Richard, yes sadly will go up 0.9%…and probably will continue the uphill trend for a while I'm guessing!
EPI_Den
Member
@epi_den
Join Date: 2010
Post Count: 71
February 17, 2012 - 11:08 am
Hi Amy,
Make sure the loan you get is right for you as far as other conditions go before worrying about interest rates exclusively. Your bargaining power will depend on your LVR and your lender, amongst other factors.
Right now I have 6.21% with Commonwealth Bank but I have a larger mortgage and an LVR around 60%. It’s also worth noting that they’re not fighting as hard now to get business as they were last year.
Finally, I’d suggest making sure you (always) know how much it’d cost for you to pay out your loans. You can use this as bargaining power, and it’s always good just for your knowledge. We make a free podcast and our latest one (EPI 039) talks about exactly this. It could be worth a listen if you want to download it.
Cheers, and good luck with your investing,
Den