Interest Rates
- Thread starter zimby
- Start date
Basics will suit some
Cracks me up that mate at work will brag about driving a Cheryl j2 to the guy that drives a wrx or a sv8...
Ta
Rolf
Good question zimby,my rate is 5.5% on my ip 
Question for brokers,i went through a broker 1 1/2 yrs ago,can i switch without incurring fees?
Thanks in advance,Shovelhead.
Question for brokers,i went through a broker 1 1/2 yrs ago,can i switch without incurring fees?
Thanks in advance,Shovelhead.
There will always be switching fees - there's usually a small discharge fee, state govt.charges and possible application fee with new lender. All up - budget around $1k.
Having said that - some lenders will rebate those fees.
In terms of your broker - they may have a deferred fee if you close down the loan within a certain period (usually two years) due to the bank clawing back their commission. If they do have this - they would have disclosed it in a credit quote.
Cheers
Jamie
Having said that - some lenders will rebate those fees.
In terms of your broker - they may have a deferred fee if you close down the loan within a certain period (usually two years) due to the bank clawing back their commission. If they do have this - they would have disclosed it in a credit quote.
Cheers
Jamie
Good question zimby,my rate is 5.5% on my ip
Question for brokers,i went through a broker 1 1/2 yrs ago,can i switch without incurring fees?
Thanks in advance,Shovelhead.
Cost to switch really depends on the lender and product you've got. If you want to change lenders it will definitely cost you. If you simply want to change products within the same lender; perhaps, perhaps not.
So just as example,it would be worth switching going by Jamie M ie:budget around 1k-to switch to a lender such as in zimby's case @ 4.85% right?
Right that's it then,i need to use my vintage calculator.
If you're going from a variable rate to a different lender, it will probably cost between $600 - $1,000 to switch.
If you're on a fixed rate, then you need ask your lender the 'break costs'. These would usually be so high that it's not worthwhile (10s of thousands in some cases).
Often the easiest and most cost effective solution is to simply renegotiate with your existing lender.
What the hell,10's of thousands?
Ps.Throws the damn vintage calculator to the salvos.
Ps.Throws the damn vintage calculator to the salvos.
That's for fixed rates and it may not be that bad, it may even be nothing. It depends on what the fixed rate is and what the rates are now. The only way to know what a fixed rate break cost would be is to ask the lender.
Variable Peter.
Hey Shovelhead - doing a difference in the interest rate X loan amount will help you get a yearly cost saving on your IP mortgage (pre tax calc).
As a first step before switching lenders, you might want to give your lender a call. A 5.5% variable rate is very high and you should be able to get a pretty big discount from there.
