$500K PPOR - variable rate 5.7%

Discussion in 'Property Finance' started by Solipsist, 26th Nov, 2012.

  1. Solipsist

    Solipsist Member

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    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
     
  2. Aaron_C

    Aaron_C Finance Broker

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    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?
     
  3. Solipsist

    Solipsist Member

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    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.
     
  4. Aaron_C

    Aaron_C Finance Broker

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    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.
     
  5. vmclee

    vmclee Member

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    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?
     
  6. Rolf Latham

    Rolf Latham Member

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    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
     
  7. Rolf Latham

    Rolf Latham Member

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    Owner occ or IP ?

    And if owner Occ, how long before it becomes an IP ?

    ta
    rolf
     
  8. Aaron_C

    Aaron_C Finance Broker

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    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.
     
  9. vmclee

    vmclee Member

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

    ahh, thanks for clarifying that Aaron
     
  10. Rolf Latham

    Rolf Latham Member

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    Quite a few lenders are doing fixed rates below 5.3

    ta
    rolf
     
  11. Solipsist

    Solipsist Member

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    Thanks Rolf. Owner occupied for a good 4-6 years before I plan on converting to an IP.
     
  12. mumbai

    mumbai Member

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    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.
     
    Last edited: 27th Nov, 2012
  13. Marty McDonald

    Marty McDonald Mortgage Broker Syd

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