Homeside Variable Rate - Stay or Go?

Hi All,

Looking for your collective advice on my current situation and whether I am getting a good deal or whether I should move on from Homeside. It's been some time since I've revisited my loans:

  • 1.4M total lend
  • non-crossed
  • LVR < 80%
  • 100% offset accounts
  • Paying $40/month in fees ($10/m per loan)

Currently 3 of the loans are on variable at 4.82% with 1 of the loans coming off fixed (at 5.09%) next month. I would like to use the fixed loan maturing as a reason to get homeside to better their offer or look elsewhere at other lenders.

Questions:
  • Am I getting a good deal in the current market?
  • What else out there would be a competitive product?

Future plans are to buy 1 or 2 more properties... over the next 3-5years.

Thanks in advance.
 
4.6s with HSL and max 20 bucks on fees if your broker tries really hard

assuming you have the capacity

odd to have all your lending with the one high servicing lender

ta

rolf
 
A simple pricing request from your broker would get 4.63% within a couple of days with HomeSide. They're one of the more aggressively priced lenders right now.

In my experience they won't do much with the fees but they're very aggressive on rates for loans below 80%. Not worth moving given they'll reprice so easily.
 
Agree with the other dudes.

4.63% and fees waived on a couple of those accounts.

Ask your broker for assistance.

Cheers

Jamie
 
Yep, can get lower pretty easily with that lending size.

Depending on your servicing and goals, map out a finance path to get you there. Having all your eggs with one of the highest servicing lenders isn't the most optimal structuring to borrow the maximum amount possible. This may be important if you plan on continuing with purchasing.

Cheers,
Redom
 
Thanks for the very quick reply fellas.

It's good to hear that they'll likely reprice easily - will look into this and target the 4.6s per the consensus here.

Also interesting to hear that they are a high serviceability lender. I wasn't aware of this and will certainly keep this in mind once I have identifed my next IP. Reckon I'll be keeping my loans on variable to keep my options open.
 
Also interesting to hear that they are a high serviceability lender. I wasn't aware of this and will certainly keep this in mind once I have identifed my next IP. Reckon I'll be keeping my loans on variable to keep my options open.

All good - usually not the end of the world. Plenty of other high servicing lenders out there.

Your LVR is sub 80% too - so if you needed to restructure/refi for some reason, the costs wouldn't be too high (assuming loans are variable).

Cheers

Jamie
 
1) When was the last time you do the valuation of your current portfolio?
2) with the recent house price increase, it may be worth to top up the loan (release some equity for your IP no.5?) and ask for better pricing with the top up.
3) Ask your broker to give you free CMA report or recent sales report in the area you are interested to buy if you are in the market to purchase.
 
interesting to see such big discounts. anyone know what sort of discounts are people getting out of macquarie and st george with under 80% lvr over 700k lending?
 
interesting to see such big discounts. anyone know what sort of discounts are people getting out of macquarie and st george with under 80% lvr over 700k lending?

Macq arent as hungry on price, 4.8s usual, STG need to price stuff hard at the moment because they have other issues.

1.3s not unusual

ta
rolf
 
We have been getting 10 bps off quoted rate on all Mac Bank loans over 750K so should be able to get them to sharpen their pencil if your Broker pushes.

Cheers
 
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