Sounds like the 3 year rate saver.
I just arranged 4.6% on 88% LVR at $358k under the pro pack.
On your $550k I'd be asking for less than that.
Best variable interest rate???
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Sounds like the 3 year rate saver.
I just arranged 4.6% on 88% LVR at $358k under the pro pack.
On your $550k I'd be asking for less than that.
Its a Commonwealth 3yr special rate with a $200 upfront fee.
For your first IP of many are you best to stay @ 80% LVR or I was thinking after reading on SS to go with 88% LVR.
Funds are coming from Equity in PPOR
You're not getting anything special with this product, it's the standard rate and it's unlikely that the CBA would negotiate on any product outside of their professional package.
You'll generally be able to get a better deal if you only borrow 80%. If you borrow more the CBA will charge a higher rate (talking about their pro pack again).
Given the ongoing pro pack fees, the 3 year rate saver might be a marginally cheaper product for the first 3 years. After that time, it's definitely going to be more expensive. If you can negotiate a pro pack rate of about 4.52% or less, then the pro-pack is going to cost about the same (when considering fees) right from the beginning and certainly cheaper at year 3 onwards.
There's so many potential combinations here based on the product and LVR. You probably need to get more specific advice rather than trying to figure it out yourself.
A the moment, with your loan size you can likely do better than the 3 yr special. As Pete mentioned, it's not generally cheaper over time.
It depends on your circumstances, but to get started I'd tend to go for 88% as it allows to to buy more, more quickly, while still being able to access equity without too much trouble.
Get specific advice though, as it's not a one size fits all thing. If you're still to buy your first IP, it's the perfect time to plan your purchases out and get the best bang for your buck in terms of lenders and LVR's etc.
Hi Peter,
After 3 years we would refinance, would this lodge another credit file?
Are you best truing to get a longer term loan with competitive rates, especially for the first IP?
Thanks again all
Assuming a refi to another lend then yes it would.
If the loan is still in LMI territory at that point then an external refi would be costly.
Cheers
Jamie
Hi,
Currently looking at refinancing 6 properties 2 line of credits and 2 credit cards from NAB to Bank of Melbourne. Current LVR on these properties is approx 75%. All of these properties are fixed and will be coming off over the next 14 months. Break costs are about $15000. For me to move all my business to BOM and to break even I have asked for a variable rate of 4%. I'm waiting for a response to this, not hopeful but if you don't ask you'll never know. I'm looking at moving over to them $1,580,000 in home loans, LOC of $180,000, Credit Cards $45000. I'll let you know how I go.
Currently looking at refinancing 6 properties 2 line of credits and 2 credit cards from NAB to Bank of Melbourne. Current LVR on these properties is approx 75%. All of these properties are fixed and will be coming off over the next 14 months. Break costs are about $15000. For me to move all my business to BOM and to break even I have asked for a variable rate of 4%. I'm waiting for a response to this, not hopeful but if you don't ask you'll never know. I'm looking at moving over to them $1,580,000 in home loans, LOC of $180,000, Credit Cards $45000. I'll let you know how I go.
Hi,
Currently looking at refinancing 6 properties 2 line of credits and 2 credit cards from NAB to Bank of Melbourne. Current LVR on these properties is approx 75%. All of these properties are fixed and will be coming off over the next 14 months. Break costs are about $15000. For me to move all my business to BOM and to break even I have asked for a variable rate of 4%. I'm waiting for a response to this, not hopeful but if you don't ask you'll never know. I'm looking at moving over to them $1,580,000 in home loans, LOC of $180,000, Credit Cards $45000. I'll let you know how I go.
They are likely to offer you 1.25-1.30%.
There is no way the BoM will give you a 1.65% discount.
In addition, BoM price according to splits.
You will also be eligible for the refinance rebate, potentially 6 of them which could offset some of the costs involved with breaking the loan.
You would want to go to a lender who doesn't discriminate on LVR >80%.
4.50% under a pro pack would be realistic.
CBA price on LVR and loan size.
Hi Watson,
They are only offering 1 refinance rebate of $1250. I have asked for 6 but they are concerned after outlaying so much cash I could move again, therefore that's why I asked for the 4 %.
They are only offering 1 refinance rebate of $1250. I have asked for 6 but they are concerned after outlaying so much cash I could move again, therefore that's why I asked for the 4 %.
Interesting, I had 3 unsuccessful attempt in the last 12 months to negotiate with CBA for a better rate via a broker channel. Above $1m loan under 80% LVR.
2 weeks back I was banking at a local CBA branch, chatting with the Branch Manager. Vented how I much disappointed I was with the rate for loyal customer etc.. She took it on board, and we got a 4.45% (from average 4.60) across the loans. Still higher than my NAB 4.38% on similar size loan of, but if I was a new CBA probably 4.35
I was pleased.
Want more? They also discounted my 3 year fixed expiring in 2016 from 4.94% to 4.63%... now I didn't see that coming
no, my broker is not incompetent, it may be CBA at that time is just generous to me.
2 weeks back I was banking at a local CBA branch, chatting with the Branch Manager. Vented how I much disappointed I was with the rate for loyal customer etc.. She took it on board, and we got a 4.45% (from average 4.60) across the loans. Still higher than my NAB 4.38% on similar size loan of, but if I was a new CBA probably 4.35
I was pleased.
Want more? They also discounted my 3 year fixed expiring in 2016 from 4.94% to 4.63%... now I didn't see that coming
no, my broker is not incompetent, it may be CBA at that time is just generous to me.
The broker/lender is talking crap, we submit a lot of deals to BoM/STG and we know their processes.
All you need to do is have a loan greater than $250k and ask the assessor to ensure that the loan is coded so they know you are eligible for the rebate which is credited to the offset ~4 weeks later.
Sounds like the broker/lender wants to cross all your loans which would mean you are only eligible for one rebate.
Either your eligible for it or your not eligible, it is not up to the lender/broker to decide.
If you submit six different application all above $250k, you are eligible for 6 rebates.
I would expect BoM to offer 1.30% (4.35%%) discount under the advantage package. If you are wanting a line of credit, your likely to pay a little more.
Hope that provides you with some ammunition to go back to the lender/broker.
Thanks Watson for the advice. If he can't come to the party I will let him know that I will be opening it up to all lenders to bid for my business in 14 months time.
Thank you to everyone for posting their loan rates on this website. I'm still on a 0.8% off SVR with NAB for a 570K IO loan (LVR <60%) and have just bought a new IP property under personal names for 1.15M - looking to borrow 80-90%, no LMI. Joint names with hubby, I'm medical, he's in building. We are also "guarantors" for our family trust IP again 365K IO loan 0.8% discount and LVR 80%.
Question for Martin - may I ask if NAB branches differ in rate discount offered? 4.2% is amazing!
General question for all - it appears I should be refinancing or asking for a better discount, but what seems reasonable? The banker hasn't been all that receptive and just sent an email asking for documents/contracts and the home loan application to be filled.
Thank you all in advance.
Interesting, I had 3 unsuccessful attempt in the last 12 months to negotiate with CBA for a better rate via a broker channel. Above $1m loan under 80% LVR.
2 weeks back I was banking at a local CBA branch, chatting with the Branch Manager. Vented how I much disappointed I was with the rate for loyal customer etc.. She took it on board, and we got a 4.45% (from average 4.60) across the loans. Still higher than my NAB 4.38% on similar size loan of, but if I was a new CBA probably 4.35
I was pleased.
Want more? They also discounted my 3 year fixed expiring in 2016 from 4.94% to 4.63%... now I didn't see that coming
no, my broker is not incompetent, it may be CBA at that time is just generous to me.
It's just timing. Cba use an automated pricing tool and I've noticed they have sharpened their negotiated rates in the last 2 weeks. They had a period where they pulled back a bit but they are back to aggressive mode currently.
Which reminds me to get some pricing on my own deals!
Some of the discounts are amazing at the moment
Cheers
Jamie
I am pretty sure this was the case. Good to know CBA is back in game, as they gone deaf ears on me for last 12 months. Glad they did as my paperwork is on Broker desk ready to move.
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