3 & 5 year fixed rates thread
- Thread starter JIT
- Start date
possibly not so much a killer if you're refinancing a large amount in the millions?
Precisely. As I said, this is best suited to a commercial facility rather than a residential one. Residential property investors don't understand that it costs money to do business.
I think most residential investors understand it costs money to do business, they like anyone else just don't want to pay the money, or at least they would try to minimise any costs.
Anyhow, I think I could take this lower rate (5.57% 2 years) as it looks good. You mention the term "commercial facility". Can you explain what you believe to be pros and cons of such a facility.
Not really roger. Most residential property purchasers get their heads in a spin if a loan requires an application fee, valuation fee, legal document reviewal fee, loan establishment fee etc etc. I'm in this business and I see it all the time...when in the grand scheme of things it's actually not a big deal and they fail to see the pros and cons of it.
As for what a commercial facility is - I mean a facility that is secured for a commercial purpose, predominantly for the purchase or refinance of a commercial property. Loan terms are usually shorter than residential mortgages anyway so if you get a good 2 year fixed term then that's a good thing.
I presume you are referring to the 70% of prop investors who only ever buy 1 investment prop and then 5 years later 70% of these one timers hastily selling to realise what they thought was going to be a healthy profit.
It's good to see you are "in the business", how about hunting me down a 5% loan fixed for 3 years
I presume you are referring to the 70% of prop investors who only ever buy 1 investment prop and then 5 years later 70% of these one timers hastily selling to realise what they thought was going to be a healthy profit.
It's good to see you are "in the business", how about hunting me down a 5% loan fixed for 3 years
Their biggest shock comes when they try to develop for the first time...particularly down the commercial route.
As for 5% for 3 years fixed....I'm still looking for myself as well
A standard $400,000 loan would still benefit from this lower rate and higher set up cost, but it depends on what your comparing this rate too.
Normally most product has a $500-$600 total set up cost either way. So with this product it's an extra $650 for a rate of 5.57% --- next lowest/ comparative fixed rate on I/O only ( simliar products) is ANZ 5.80%.
A difference of 0.23% per year.
0.23 x $400,000 = $920 in interest per year.
I think ppl know there are cost involved for doing business, but not all will sit down and compare the numbers; they will jsut take it at face value...it's like LMI- most will not shop around for "cheaper" LMI but rather they will focus on the rate only- costing them $1,000's in savings.
Regards
Michael
Offered 6% 3yr fixed by the NAB today in general discussion with a branch manager ... but (okay, so I know them personally) was advised to hold off for a couple of months for sub-6.
This is not gospel advice ... but I wasn't going to fix unless they were sub-6 anyhow, so no skin off my nose if they don't.
This is not gospel advice ... but I wasn't going to fix unless they were sub-6 anyhow, so no skin off my nose if they don't.
What size loan do you need to get 6% for 3 years?
NAB's website shows that 3 years fixed rate is 6.34% or 6.24% if you are a "choices" customer. How difficult is it to negotitate to below 6%
How long is a piece of string
, and what day of the month is it I know its odd, but most lenders will do less to hold you than to first attract you
While margins are better on fixed rates than on most pro pack discount variables, there is less movement available on a fixed than an already discounted pro pack.
With a few lenders doing sub 6s for a 3, unless you NEED to stay with a lender for whatever reason, often its more effective to MOVE.
ta
rolf
I'm looking for a 3 yr fixed rate sub 6. I was thinking of holding off to see how low they will go but it could look like a good time to organise something now.
My ppor and ip loan is crosscol with anz. LVR about 75%
My ppor and ip loan is crosscol with anz. LVR about 75%
According to this website:
http://www.shapehomeloans.com.au/blog/lowest-fixed-rates-january-2012-2012010974
http://www.shapehomeloans.com.au/blog/lowest-fixed-rates-january-2012-2012010974
- ANZ offereing 2 year fixed rate at 5.8%
- Challenger offering 3 year fixed at 5.59% with 95% LVR.
Oh cool. I'm with anz. The 2 year 5.8% sounds great!!!
So if I were to stay with anz does that mean I dont have to pay a big fee to refinance? My ppor loan is cross col with my ip valued at $470 total.
I hope the anz will allow me to uncross them so they are stand alone now.
I'm waiting to hear back from my broker.
