Macquarie Bank Offer

[Aimjoy]

Hi all,

I have 2 low doc loans with Macq. Both currently variable @ 10.05%.
Got a letter in the post today with an offer to fix at a discount.

I rang them to get more info. The offer is:

1 year fixed @ 9.4% with no fees to fix (but obviously fees to break).

What do you guys think? Are they being opportunistic since rates are/may be coming down?

Love to hear your thoughts.

Aimjoy

 

[Nth Brisbanite]

I don't know what Macquarie is doing at the moment - have their funding costs gone down? I thought that they were trying to encourage people to refinance out of their loans by offering them reductions in their exit fees. 9.4% is still high compared with other banks who are fixing at below 9% and still going down.

I'm paying them 10.32% variable and can't wait to get out.

 

[josko]

That's interesting,

If there are fees to break.....and if those fees run into the 1000's then I personally would not take the offer up.

One year with only a .65 reduction is not worth entering into another contract with more break fees in such an uncertain market.

Not enough of a carot for me.

Regards Jo

 

[Aimjoy]

One year with only a .65 reduction is not worth entering into another contract with more break fees in such an uncertain market. Not enough of a carot for me.

Regards Jo

Well Jo,

I have no plans to sell so the break costs do not come into the equation for me. But I told the nice Macq. Bank man that a 0.65% reduction on only 1 year fixed was not worth it to me as an investor, especially as it looks like there may be some more reductions on the way from the RBA.

So I'm with you.

Aimjoy

 

[nomadic]

i'm paying the parasites 10.46%, but not for much longer

 

[Shaun M Smith]

Fixed Rates

In light of expectation that RBA will reduce rates in coming months fixed rates are currently heading downwards.

For instance, communication from Westpac this afternoon:-

Please see attached Decreases in Fixed Interest Rates Effective 26/08/2008............. I don't remember seeing drops this big in one hit!!! Hopefully these decreases will inspire our clients to come out of hiding and borrow some money again $$$$$$$ !!!!!!

P.S: Don't forget that your clients are still eligble for a further .2% Discount off the fixed rates under the Premier Advantage Package!!!

Thanks Again for your contined Support

The following Home and IPL fixed interest rates will be effective from 26 August 2008:


Term Current rate New rate Movement

1 year 9.29% to 8.69% - 0.60% down
2 year 9.29% to 8.59% - 0.70% down
3 year 8.89% to 8.39% - 0.50% down
4 year 9.19% to 8.39% - 0.80% down
5 year 9.09% to 8.39% - 0.70% down

 

[MiQu]

Just exited Mac with 2 loans=ppor &ip. Was paying 9.32% standard variable, but now approx.7% lower. Exit fees were about 2.5K each, but LMI recovery will cover that, luckily. And new loan won't need LMI due to inc equity...
Relieved to be out. Never liked the extensive paperwork & legal stuff Mac etc...

 

[kissfan]

Also just recently refinanced a loan away from Macquarie.

Regards
Marty

 

[James Allen]

I'm not sure what makes me special but my mac variable rate is only 8.93%

Here's a snapshot from online.

 

[GoAnna!]

Full doc versus lo doc?

 

[ILoveProperty]

Full doc versus lo doc?

Yes
I have the same rate with a loan I have with Macquarie. It's full doc.

 

[MiQu]

Mine was full doc too, but the rate was increased to 9.32%, about 3-4 weeks ago. Have since swaped. I wonder if they have decreased the rate given the large exodus...?

 

[ILoveProperty]

I can confirm that mine hasn't reduced. So it's a mystery to me why the different rates...

 

[Aimjoy]

Yep, mines a low doc.

The dilema I have is this:
1. I plan to keep the IPs - so break costs don't worry me
2. If I refinance away from Macq. Bank I'm up for legals, stamps on new mortgage, MI (possibly) and it still needs to be low doc loan in any event.
3. If I accept Macq's offer now I get a 0.65% discount to the current rate - this saves me about $3K pa (a not insignificant sum)
4. If the RBA drops rates next month and more after then there is no guarantee that Macq will pass on those decreases (their cost of funding is still exposed to sub-prime)
5. If the RBA really is worried and drops rates more than 0.65% over the course of the next 12 months AND Macq passes all those decreases on, then I'm worse off by locking in now.

I guess its all crystal ball gazing for the next 12 months on IR

I'm probably too suspicious of Macq Bank but why would they offer me a discount unless they thought they'd be the winner in the transaction (i.e. rates drop a lot more than 0.65%) .....or do they just want to try to keep a good customer?

What would you do?

Aimjoy

 

[James Allen]

My rate currently is the highest it's been,so it's not at that due to a recent cut. It's funny how they can have different people on different rates. I'm going to wait and see what happens after some RBA cuts, I will refinance if the cuts aren't passed on otherwise for the size of the loan and costs involved it's just not worth it for me to go else where.

 

[MortgagePlus]

MAQUARIE Rate Changes

Just exited Mac with 2 loans=ppor &ip. Was paying 9.32% standard variable, but now approx.7% lower. Exit fees were about 2.5K each, but LMI recovery will cover that, luckily. And new loan won't need LMI due to inc equity...
Relieved to be out. Never liked the extensive paperwork & legal stuff Mac etc...

LMI Recovery does not 'cover' anything. It is an additional fee to escape if MAQ paid the premium for you.

Further on the original topic, I have it on good authority (internal staff at MAQ Bank) that they have no intention of passing on RBA rate cuts for at least the rest of the year. This means the gap between what you have, and what is available in the market will continue to widen.

My opinion is to get far, far away from Maquarie Bank. The best thin you can do to minimise the DEF fees is to confirm the Settlement date of your original loan. If the date is not too far away, waiting it out for a month or two could be a good idea, as the MAQ DEF fees drop annyally.
Yr 1 - 1% of the original loan amount
Yr 2 - 1 %
Yr 3 - 0.75%
Yr 4 - 0.5%
Yr 5 - 0.25%
This is a typical example.

I hope this helps.

Tim O'Shea
Mortgage Plus
[email protected]

 

[josko]

LMI Recovery does not 'cover' anything. It is an additional fee to escape if MAQ paid the premium for you.

Further on the original topic, I have it on good authority (internal staff at MAQ Bank) that they have no intention of passing on RBA rate cuts for at least the rest of the year. This means the gap between what you have, and what is available in the market will continue to widen.

My opinion is to get far, far away from Maquarie Bank. The best thin you can do to minimise the DEF fees is to confirm the Settlement date of your original loan. If the date is not too far away, waiting it out for a month or two could be a good idea, as the MAQ DEF fees drop annyally.
Yr 1 - 1% of the original loan amount
Yr 2 - 1 %
Yr 3 - 0.75%
Yr 4 - 0.5%
Yr 5 - 0.25%
This is a typical example.

I hope this helps.

Tim O'Shea
Mortgage Plus
[email protected]

Thanks fo the inside knowledge Tim.
There's your answer Aimjoy.

regards jo

 

[Nth Brisbanite]

Further on the original topic, I have it on good authority (internal staff at MAQ Bank) that they have no intention of passing on RBA rate cuts for at least the rest of the year. This means the gap between what you have, and what is available in the market will continue to widen.

My opinion is to get far, far away from Maquarie Bank.


Tim O'Shea
Mortgage Plus
[email protected]

Tim, I totally agree with your advice. I'm furiously refinancing all my loans out of Macquarie. Getting finance with them was a gigantic mistake which I will never make again - it's cost me a fortune!!!