5 year fixed @ 4.69%
- Thread starter Redom
- Start date
Except crappy bank?
Competition should drive the market down though. It won't just be MEbank offering 25-30bp lower than everyone else.
I like 5 year fixed for my NRAS clients, given the difficulties refinancing and 10 year structure. Also from my experience, ME Bank's NRAS offering isn't too shabby. 4.69% rate, no fees, for half the ten year period is a pretty good deal.
Cheers,
Redom
It's okay for sub 80% LVR, otherwise the SVR it will revert to is junk. You'll want to Refi at the end of the term unless you're going to refix.
Except crappy bank?
lol - correct!
Not one of my go to lenders - that's for sure. Sharp fixed rates - but that's about it.
5 years is a looooong time to lock yourself in for too. Could suit some borrowers though.
Cheers
Jamie
I agree with Jamie. MEs fixed rates are consistently competitive, everything else about them is consistently terrible.
Variable rates are amongst the highest out there.
Service for loan approvals is awful and inconsistent.
Offset account is so quirky it's rarely suitable for investors.
Painful for getting equity released.
If you want a set and forget fixed rate and are prepared to refinance after it expires, they're fine. Anything else and there are numerous better options available.
Variable rates are amongst the highest out there.
Service for loan approvals is awful and inconsistent.
Offset account is so quirky it's rarely suitable for investors.
Painful for getting equity released.
If you want a set and forget fixed rate and are prepared to refinance after it expires, they're fine. Anything else and there are numerous better options available.
I've yet to have a positive experience with them to be honest. Their rate is certainly used to draw people in, but their service as a whole still doesn't stack up to provide a strong value proposition.
Can be worth it if you're rate chasing at 80% or less but it's still a *long* period to lock yourself in.
Can be worth it if you're rate chasing at 80% or less but it's still a *long* period to lock yourself in.
I work in IT and my CFO never lets me sign anything for 3 years at absolute most but will always push me to make 2 work.
The savings on 5 years are always quite substantial but as soon as I tell them I won't consider it and I'll start exploring other vendors it takes little time before there 5 year pricing starts looking like 3.
I know this is different but point being if you push hard enough from the start you can quickly get others who want your business to consider their prices and lengths.
Signing anything for 5 years IMO is dangerous. No one has that much foresight to predict there circumstances will not change in that time.
The savings on 5 years are always quite substantial but as soon as I tell them I won't consider it and I'll start exploring other vendors it takes little time before there 5 year pricing starts looking like 3.
I know this is different but point being if you push hard enough from the start you can quickly get others who want your business to consider their prices and lengths.
Signing anything for 5 years IMO is dangerous. No one has that much foresight to predict there circumstances will not change in that time.
Starting at 90% today, it's reasonable to feel you should under 80% by Year 6
Depends very much on property and strategy - rural cashflow property probably not.
I doubt ME Bank would do too much high LVR rural. For the purposes of this conversation at least, investors gearing to 90% in Cat 1 resi locations should be able to reasonably assume they'll be under 80% by the time the 5 year fixed rate expires. Certainly for NRAS, where the overwhelming majority of investors have a minimum 10 year plan, 4.69% would have to be considered very appealing.
