What is the borrowing amount and the LVR ratio?
Current Home Loan interest rates
- Thread starter kamchatsky
- Start date
What is the borrowing amount and the LVR ratio?
$482K Loan, LVR 56% initially. They will up the loan to 80% as I need it to build the IP. They will also provide the same rate if I wish to extend the loan with additional security on the IP (but I probably won't have to).
Brokers know best!
So are you seeing the sort of discount that Edison and flatEarther are getting, based on their borrowing amounts/LVR? Their circumstances are quite similar, ie. low LVR with equity drawdown planned for next IP.Their borrowing amounts are also quite low, which is why it's surprising that the discount offered is so high. I'd thought that 4.85% is a good Big 4 bank variable rate for a $500K+ borrowing amount these days, but looks like I'm wrong.
So looks like I should talk to NAB to see if I can get 4.68% as well, and then have a chat with the broker ...
I googled and found the following as well. Not sure what "white label" means in this case:
http://griffinfinancialadvisory.com...re-than-4-98-on-your-variable-home-loan-rate/
I googled and found the following as well. Not sure what "white label" means in this case:
http://griffinfinancialadvisory.com...re-than-4-98-on-your-variable-home-loan-rate/
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So is this the standard NAB Choice Package home loan with all the offset accounts etc?
Yes, plus some pressure to get the lowest rate possible. Pressure applied by a hint that I might go elsewhere.
As a new member of these forums I note a frequent point of discussion is the benefit (or otherwise) of brokers. I think this is missing the point. The ability to get the best deal relies on relationships. Brokers have them with various bankers. I have a good one with NAB. That's why I was able to ask for a good deal, and why I got one. The NAB wanted to keep me as a customer, and they new I was low risk because of my previous activities (like paying off older loans).
4.78 at Westpac. Think it is %1.2 discount. Had a few loans at this discount and others at 1.0 or 1.1 but they came to the party and applied it across all loans. The end rate is still higher than I could probably get else where but the lifetime discount is higher and they may not always be the most expensive.
Products really suit us. I must say i'm all in with them but as yet they have done nothing to upset our position.
Products really suit us. I must say i'm all in with them but as yet they have done nothing to upset our position.
^ for the standard NAB product with the 100% offset account ( ie not Ubank etc...) 4.68% is very good and rare for a big 4 to offer that sort of discount on that loan size in today's environment, you have def done well!
15- 18 month ago some of the discount on offer was around 1.1-1.29 with the majors depending on lending amount, security and LVR ( so rates wise would be around 4.59-4.70% as of today), as of today the offers are around 0.80 - 1.10 or there abouts. So it does depend where you are at within the "bank's cycle"
^ White label = resold/marketed as their own product. Similar to how insurance work " underwritten by..."
That product on offer is an Advantage product; needs to be 50% fixed and variable + annual fee and no offset...so ok rates but fees and lack of features can sort of kill ya!
As the previous poster mentioned, no matter what "discount margin" you get with westpac it's always gonna still be the highest among the big 4, as the SVR is different btw each bank.
Westpac's SVR- 5.98%
ANZ- 5.88%
NAB- 5.88%
CBA-5.90%
and then you have the medium tier banks....and credit unions and non-banks ...
So yea speak to your broker and bank as well, but if your only interested in a low rate- than you may need to refinance.
Discounting for loans
Hi FlatEarther,
I am wondering what the final loan amount is here. 56% is $482k but you are moving to 80% which must be over $680k. If construction value is involved then the value is higher and the loan amount would be higher too.
I think the rate is based on a pre-approval as well for the construction or on the basis that you will be doing that loan with nab. Which of course you will. That rate is extremely good.
On the comments regarding St George they will go to 4.84%. Most of the majors are matching this for new lending. Just get your broker to negotiate. Your overall lending needs to be $500k or more. It's much easier if the LVR is 80% or less and your are moving all of your lending to the new lender or increasing lending with the same lender.
Westpac have offered additional standards discounts which will apply across the board from Monday.
But be careful, if you have multiple properties you will be cross-collateralised unless you use a broker that will structure correctly or you give the bank a hard time to do it this way. You want the rate but not the future pain (and cost - both time and money) to start the unravelling process. Even a worse if its fixed rate loans.
Bottom line - at the moment the banks are fighting for business and its coming via discounts. If you go with the majors you can also have offset accounts etc. White label is good for basic loans with a cheap rate. We have done some rate negotiation on this type of loan recently and done well.
Good luck with the negotiating
Warm Regards,
Tracey
PS: For medical and professional offers for high net worth professionals offer the 90% no LMI are usually the standard discounts. However, with the level of lending that is usually 1% across the banks anyway.
Hi FlatEarther,
I am wondering what the final loan amount is here. 56% is $482k but you are moving to 80% which must be over $680k. If construction value is involved then the value is higher and the loan amount would be higher too.
I think the rate is based on a pre-approval as well for the construction or on the basis that you will be doing that loan with nab. Which of course you will. That rate is extremely good.
On the comments regarding St George they will go to 4.84%. Most of the majors are matching this for new lending. Just get your broker to negotiate. Your overall lending needs to be $500k or more. It's much easier if the LVR is 80% or less and your are moving all of your lending to the new lender or increasing lending with the same lender.
Westpac have offered additional standards discounts which will apply across the board from Monday.
But be careful, if you have multiple properties you will be cross-collateralised unless you use a broker that will structure correctly or you give the bank a hard time to do it this way. You want the rate but not the future pain (and cost - both time and money) to start the unravelling process. Even a worse if its fixed rate loans.
Bottom line - at the moment the banks are fighting for business and its coming via discounts. If you go with the majors you can also have offset accounts etc. White label is good for basic loans with a cheap rate. We have done some rate negotiation on this type of loan recently and done well.
Good luck with the negotiating
Warm Regards,
Tracey
PS: For medical and professional offers for high net worth professionals offer the 90% no LMI are usually the standard discounts. However, with the level of lending that is usually 1% across the banks anyway.
Forgot to say well done regardless btw!
What are the new standard discounts? I've checked the website and it says up to 1% discount but I wasn't sure it that's the same offer they had last week too.
Are they crossed-collateralised?
I'll need more than $680K total for land and build, but will not necessarily have to borrow more. If I need it, I can get it at 4.68%, but they are not requiring me to borrow more to get the rate on the initial loan.
No business banking connections.
Low Risk = Low Rate. I'm low risk, the investment is low risk for me and for the bank. I new there was some reason I've stuck with NAB when they've been so painful to deal with, customer service wise.
