$500K PPOR - variable rate 5.7%

Hi,

First post here, so hopefully I'm providing enough information to make this a meaningful question.

I'm borrowing $500K (79% LVR) for my first property. After much haggling, ANZ is giving me a 5.7% interest only variable rate. Wondering if you guys reckon that this a good deal or should I be even more greedy and shop elsewhere?

Cheers,

-J
 
It is not the best rate you can get but what is your situation? Is it a refinance or purchase? Are you self employed? PAYG? What features do you need?
 
It is not the best rate you can get but what is your situation? Is it a refinance or purchase? Are you self employed? PAYG? What features do you need?
It's a purchase. I'm employed in a permanent full time position. Features I need are primarily a mortgage offset account and the ability to withdraw money from that account.
 
It's a purchase. I'm employed in a permanent full time position. Features I need are primarily a mortgage offset account and the ability to withdraw money from that account.

Assuming that you service easily then you can get a bit better than that. But it really depends on other factors since ANZ's breakfree package is a $375 annual fee which is another 0.075% on a $500,000 loan.
 
Assuming that you service easily then you can get a bit better than that. But it really depends on other factors since ANZ's breakfree package is a $375 annual fee which is another 0.075% on a $500,000 loan.

Aaron, are you saying the OP can achieve an Offset account with a variable rate of 5.625% on a $500k loan from ANZ?

I thought there was 0.60% discount was based on the bank's interest rate (ANZ currently is 6.6%) and not off the negotiated/haggled rate?
 
Aaron, are you saying the OP can achieve an Offset account with a variable rate of 5.625% on a $500k loan from ANZ?

I thought there was 0.60% discount was based on the bank's interest rate (ANZ currently is 6.6%) and not off the negotiated/haggled rate?

No what I'm saying is that the $375 annual fee is an effective increase in the interest rate of 0.075%, so rather than paying 5.7% you are paying 5.775%. That is what the comparison rate is for.
 
ING are doing 5.63 on > 500 k and u will find that many lenders will match on 80 % , incl ANZ if you ask nicely : )

ta
rolf

rolf, what would be the best rate for a $600k+ 90% lvr loan?

No what I'm saying is that the $375 annual fee is an effective increase in the interest rate of 0.075%, so rather than paying 5.7% you are paying 5.775%. That is what the comparison rate is for.

ahh, thanks for clarifying that Aaron
 
I am with ANZ and they gave me a 5.67% (89% LVR)on a 360K IO loan for 5 years and P&I thereafter. Though not much off, still it was a smaller amount and more LVR than OP.
You can get better. I was already with ANZ on the breakfree package for my PPOR loan, so it was a better deal for me.
 
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rolf, what would be the best rate for a $600k+ 90% lvr loan?


Most lenders are not offering their best rates for > 80% LVR anymore but a quick search on our system found the dragon at 5.74% or you could look at a basic loan at 5.64% with someone like Heritage. These are headline rates not comparison rates.
 
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