IO - Only for 10 years? - Best SV IR ?

Discussion in 'Property Finance' started by Alex P Keaton, 15th Oct, 2012.

  1. Alex P Keaton

    Alex P Keaton Member

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    Hi

    IO Just for 10 years?

    I was just on the phone with ANZ. My IO period reverts to P&I in a couple of weeks so I will be changing it back to IO as I dont want P & I. ANZ said that after 10 years the bank wont allow you to pay IO they will make you go onto P & I.

    Is there a way around this. I dont want to ever be on P&I with this loan. If I were to re-finance with another bank after 10 years would this be the way around the problem so I can keep paying IO.


    Best SV IO rate What should I try to get?

    Also my current IR with ANZ is 6.60% minus breakfree package. (atm I'm paying 6.20% IR) ANZ will be ringing me back in the next 7 days to organise another 4 year IO contract for me. I told the lady on the phone that I have been talking to other banks to look for the best IR. I'm actually bluffing here.

    I have 2 loans totalling $375 K. What kind of IR deal would I be able to get with ANZ? I am going to tell them that I'll stay with them if they can match what the other banks are offering. What do you think I should ask for? An IR of 5.7% ? 5.8% What is a good SVR atm?

    Hope I havent been too long winded. I'm sure these questions have been asked before but I really wouldn't know where to look using the search function here plus ANZ are going to get back to me very soon and I need to be prepared (and look like ive done my homework)

    thanks :)
     
  2. Mr. Fabulous

    Mr. Fabulous Thought Criminal

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    Yeah, talk to a broker. Surely you know this by now?
     
  3. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    If ANZ won't allow you to extend the IO term you could refinance somewhere else (but there's a lot of other things to consider here).

    Tell them CBA will offer you at least 5.8% on your total borrowings.

    Cheers

    Jamie
     
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker/strategist

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    If you are paying 6.3% at ANZ for total borrowings over $250k then there's something wrong. Their standard pricing is better than that @ 5.90%, but I'd be asking for 5.80% (delivery rate, not SVR).

    At the ten year point with ANZ, you pretty much need to decide if you're okay to move to P&I or if you are willing to refinance elsewhere.
     
  5. Rolf Latham

    Rolf Latham Member

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    depending on the current LVR they may be able to tell you are full of hot air : )

    The primary way to get around PI in year 10, is to refinance before then, IF you need to.

    On the rate Ubank will do a nice 5.57 v on refinance at 80 %

    I guess though your question was probably along the lines of whats a decent rate for a comparable product to the ANZ SVR ?

    ta

    rolf
     
  6. Shaneelastic

    Shaneelastic Member

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    Im on breakfree paying 5.93 IO before rate cut, should go down to 5.73ish
    similiar levels of borrowing on my PPOR + one IP
     
  7. Alex P Keaton

    Alex P Keaton Member

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    Yeah that is something to look at down the track if they wont extend the IO term.

    Cool ok thanks I’ll tell them CBA offered me 5.8% and that I’m thinking of re-financing with them. Then I’ll say to ANZ can you beat that. If they say no then I’ll say if you can match 5.8% I’ll stay.

    Does that sound ok?

    :)
     
  8. Alex P Keaton

    Alex P Keaton Member

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    Hi. What do you mean by Delivery Rate?


    Ah good to know, thanks!
     
  9. Alex P Keaton

    Alex P Keaton Member

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    ive run out of time. i'm on my lunch break. i'll reply tomorrow :D
     
  10. Peter_Tersteeg

    Peter_Tersteeg Finance broker/strategist

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    Delivery rate is the standard variable rate minus the discount for professional packages, etc. Essentially the rate you pay, minus any ongoing fees and charges.

    Comparison rate is the equivalent interest rate you pay when all fees and charges are considered. Published comparison rates are generally worthless because they're calculated on hypothetical amounts and scenarios which are likely to be different from what you're doing.
     
  11. Rolf Latham

    Rolf Latham Member

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    gee dont tell the boss that you can only do SS during work time : )

    t
    arolf
     
  12. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    Sounds like a plan. Good luck.

    Cheers

    Jamie
     
  13. Aaron_C

    Aaron_C Finance Broker

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    Just refinance if you are in a good position to do so. ANZ is a real pain when it comes to amending your loan as it requires a full application even to change from P&I to IO and vice versa.
     
  14. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    I think that's changed now - I haven't put it to the test though.

    Cheers

    Jamie
     
  15. Rolf Latham

    Rolf Latham Member

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    we have

    has some strict conditions to it, and you cant do it.

    You need to let the client be serviced by a branch, which like brokers, can be hit and miss

    t
    arolf
     
  16. srini

    srini Member

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    We were on 5.8% with ANZ before the rate cut.

    Recently called them to see if they'll drop it further (thought it was worth a shot), but no luck.

    Definitely push for a discount or talk to one of the brokers here.
     
  17. Peter_Tersteeg

    Peter_Tersteeg Finance broker/strategist

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    ANZ were offering 1% discounts last year which was a great deal, but unless your total borrowing is in the order of $1M you're unlikely to get it now. It was a great deal while it lasted though.
     
  18. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    and a lazy grand as well....those were the days :)

    Cheers

    Jamie
     
  19. Alex P Keaton

    Alex P Keaton Member

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    Hi Rolf

    Current lvr is approx 70-75%

    Ok cool, if im still with ANZ by that time (the 10 yr mark) I might refinance somewhere else. I don't want p&i whilst I'm accumulating.

    Yeah. I was wondering what a decent rate was for a comparable product (like break free).

    :)
     
  20. Alex P Keaton

    Alex P Keaton Member

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    Thanks. Good to know!