Variable Rate Discounts

[jatt]

Hi Guys

Just bought another property which takes my total borrowings to about:
$836K NAB Choice Package (variable at 5.68%)
$1M with NAB Choice (Fixed end of 2012 for 3 years at 5.24%)
$800K HSBC Premier (Fixed end of 2012 for 3 years at 5.24%)

What is the best variable rate people are getting currently? My banker said to email her the best rate i could get at another bank and then she will be able to match it for the variable rate which at the moment i am only getting a .7% discount. What is the best way to go about that as i would like it down to say 5.28% (1.1% discount) or something around that figure.


Thanks
Nav

 

[Rolf Latham]

Hi Guys

Just bought another property which takes my total borrowings to about:
$836K NAB Choice Package (variable at 5.68%)
$1M with NAB Choice (Fixed end of 2012 for 3 years at 5.24%)
$800K HSBC Premier (Fixed end of 2012 for 3 years at 5.24%)

What is the best variable rate people are getting currently? My banker said to email her the best rate i could get at another bank and then she will be able to match it for the variable rate which at the moment i am only getting a .7% discount. What is the best way to go about that as i would like it down to say 5.28% (1.1% discount) or something around that figure.


Thanks
Nav

Hi Nav

U bank are doing some good deals at the moment, and even with mainstreams you can get rates down to and below 5.4.

Im going to toss a spanner into that fast spinning wheel coz you look like someone that is building a portfolio ..............what happens when NAB says no more money, pls go and sit down for the next 5 years ...............watcha going to do then ? With some of your stuff fixed for 3 it probably doesnt mater

If you variable stuff is linked in any way to your fixed, dont expect NAB to move very far because they have you .

ta
rolf

 

[Aaron_C]

Ask for 1.5% discount.

 

[Mick C]

Macqauire bank is offering an 1.1% discount based on your borrowing as long as LVR is below 80% -- rate 5.34%

 

[jatt]

Hi guys,

thanks for the comments.

Basically i think the majority of my property buying is done and i will look the start repaying some loans slowly. the reason for the large amount of loan is due to the 1 property being in 6 names, and i understand this will probably affect my future borrowing. i may in the future look into the possibility of drawing into equity to buy further properties, but my main goal at the moment is to enjoy life and try and reduce my debt.

None of the loans are cross collaterized.

Yes i was considering uBank as it does seem like the leader for cheapest loan.

Is it worth having multiple offset accounts? or just put the money to whichever has the highest interest rate?

 

[Rolf Latham]

Hi guys,


Yes i was considering uBank as it does seem like the leader for cheapest loan.

Be mindful that you might want to keep your own cash outside of the Ubank redraw and in one of your other loans with offset

Section 7 doesnt excite many people that understand the concept of liquidity issues.

http://www.ubank.com.au/ubank/ib/documents/uhomeloan-terms-conditions.pdf?cookieenabled=true

ta
rolf

 

[Rolf Latham]

the reason for the large amount of loan is due to the 1 property being in 6 names, and i understand this will probably affect my future borrowing.[/QUOTE]

there are a few ways through the joint and several liability thing with very few lenders, more so if the lending is in a company name and your exposure is a contingent guarantee.

ta

rolf

 

[Mick C]

Is it worth having multiple offset accounts? or just put the money to whichever has the highest interest rate?

Offset the PPOR Loan...than the one with the highest variable rate.