0.6% rate rise for Macq. Loan
- Thread starter Rockstar
- Start date
Think yourself lucky. Mine have gone up to 10.37%. I'm refinancing all my loans out of Macquarie even though it might cost me a fair bit. I'm going back to the big banks where I used to have all my loans.
I've learnt a costly lesson - get yourself a decent broker!! Believe me, most of the ones on this forum are far far ahead of so many I've come across.
I've learnt a costly lesson - get yourself a decent broker!! Believe me, most of the ones on this forum are far far ahead of so many I've come across.
I just settled on a block of land around 3 weeks ago with Collins Securities - funded by Macquarie. Just got a nice letter in todays mail - the usual blurb - rates need to go up 0.6% to 10.09% to cover increased costs in funding mortgages.
Anyone else been hit?
Ian
Not yet, Ian, but thanks for the warning.
I've been in process of refinancing away from Mac to RAMS, but have been hit by a .4% incresase on an existing RAMs loan. I guess unless you are with tthe big 4 or Bank West, increases of this sort are to be expected these days!
jo
Yeah I should have gone with my gut feeling which was to avoid Macquarie though it was an easy approval with a long settlement with the loan approved about 4 mths ago. I have my other 4 loans with the major banks now - each with .6 to .7 % discount off standard variable rate. Trying to keep the total borrowings with each at reasonable levels - below 1 mill.
I guess Interest rates are only one part of the whole equation and I can't have everything.
I second that!!
Hiya Sun
Where possible we have been trying to use mainstream funders that have at least some depositor funds to lend from.
The bigger 6 or so lenders MAY have less exposure to funding issues, butmore importantly have other income streams that can supplement more meager returns from mortgages, even if they do need to securitise.
We havent been big fans of securitised lending from the start ( for different reasons other than the cost issues now apparent), and tend to only use that style of money where there are no obvious mainstream alternatives.
Ta
rolf
Where possible we have been trying to use mainstream funders that have at least some depositor funds to lend from.
The bigger 6 or so lenders MAY have less exposure to funding issues, butmore importantly have other income streams that can supplement more meager returns from mortgages, even if they do need to securitise.
We havent been big fans of securitised lending from the start ( for different reasons other than the cost issues now apparent), and tend to only use that style of money where there are no obvious mainstream alternatives.
Ta
rolf
Back then everything was thoroughly vetted.
Mine was lo doc
Copped my smack in the kisser from Macquarie today
One Loan up to 10.6% the other up to 10.28%
This had been proceeded by a Liverpool kiss (in the form of a letter though) a few days earlier stating that LMI recovery fee had been incorrectly noted on my loan, apparently mine incorrectly stated a $0.00 LMI recovery fee; this they have kindly reinstated to the value of $191.30 on each loan
Add that to the $7.5k approx if I discharge my McLoans
(
Last edited:
While securitised funding is on the nose today, it will come back into the market eventually in some way shape or form.
I'm trying to remember who the bigwig is that I saw say it, but you have thanks to John Symonds who kicked it off. Initially he was great due to the cheaper rates and being able to under cut the big banks.... at aussie we'll save you.... now Aussies a broker in itself and transitioning.
Point being one day you love him and a decade later you may not.
Might be a question if you can write it off. But I think I'd be safe to say I'm not seeing funding costs go up as much by any other lender (yet)
I'm trying to remember who the bigwig is that I saw say it, but you have thanks to John Symonds who kicked it off. Initially he was great due to the cheaper rates and being able to under cut the big banks.... at aussie we'll save you.... now Aussies a broker in itself and transitioning.
Point being one day you love him and a decade later you may not.
Might be a question if you can write it off. But I think I'd be safe to say I'm not seeing funding costs go up as much by any other lender (yet)
Thats a shi*, I think ours is only around 8.65%, at least not much more than the mainstream banks. Did get a great full doc deal though. Would've thought they'd securitise the good stuff and keep the low docs on the books. Maybe they are trying to get you guys to re-fi out.
I've just worked out that the difference between my Macquarie loans and Westpac is 1.6%. If I stayed with ANZ instead of refinancing as suggested by my previous broker, interest rate would be about 8.6%.
The total costs of refinancing my loans to Macquaries and then out again is going to be close to $40,000. Ouch!!!
I'll say it again - if you want to do well in property investment you need a competent broker who understands investors.
The total costs of refinancing my loans to Macquaries and then out again is going to be close to $40,000. Ouch!!!
I'll say it again - if you want to do well in property investment you need a competent broker who understands investors.
Do you mean they shouldn't have put you with Macquarie in the first place?
We're currently looking at our options re low-docs, break fees with Macquarie would be around $7.5k (plus the interest component)
An option would be to refinance to a fixed loan for three (3) years at 8.79% (80% LVR) or variable at 9% (90% LVR)
Option one locks in a rate much lower than currently paying
- but will take around 18 Months I suppose to get to break-even point
Option two is a lower variable rate than currently paying plus releases another $180k in equity to add to our Buffer
-But we could also wind up in the same situation as before should the rates continue to rise
Hiya Red
If the pay back is 18 mths, and you are concerned about being back to the same point if rates rise further, I think it may be reasonably assumed that the Macq rate would rise at least as much as lender x over the same time frame
ta
rolf;
If the pay back is 18 mths, and you are concerned about being back to the same point if rates rise further, I think it may be reasonably assumed that the Macq rate would rise at least as much as lender x over the same time frame
ta
rolf;
Do you mean they shouldn't have put you with Macquarie in the first place?
We're currently looking at our options re low-docs, break fees with Macquarie would be around $7.5k (plus the interest component)
An option would be to refinance to a fixed loan for three (3) years at 8.79% (80% LVR) or variable at 9% (90% LVR)
Option one locks in a rate much lower than currently paying
- but will take around 18 Months I suppose to get to break-even point
Option two is a lower variable rate than currently paying plus releases another $180k in equity to add to our Buffer
-But we could also wind up in the same situation as before should the rates continue to rise
That's right my previous broker shouldn't have put me through Macquaries in the first place. The broker was out of her depth in that she didn't understand enough about investors' loans. Silly me was too trusting and lacking in knowledge and just followed her recommendations to refinance to Macquarie.
Since this costly mistake I've learnt a lot through the help through this forum and won't make the same mistake again.
I can't see how you can lose by refinancing out of Macquaries. They obviously don't want any new no/lo doc business for a long time and will continue to increase their rates until they cover their own costs. Macquaries' actions are a public relations disaster from which they are going to lose a lot of business in the future.
I will only use one of the big 4 in the future as they appear to be superior than the others in interest rates and service.
