What's the best fixed rate currently available

H

handyandy

Hi all

Haven't time to do a lot of homework as of to Thailand on hols.

Just found that an interest only loan was switched to P & I. They hit me for a $5600 principal payment.

Loan is for $750k lender is CBA on their wealth package so get a whole .15% discount.

Currently LVR on this portion of our portfolio is just under 42% with 3 properties secured against the loan, properties are worth about $600k each.

I want to put this loan back on a fixed interest only loan (with 100% offset) for 3 or 5 years. Also want to release one of the properties and end up with an LVR of about 60%.

So the question is what interest rate should I be able to achieve with the CBA and also with other organisations? How much effort will it be to move the loan?

Don't really want to apply for a new loan (with another bank) as we live of rent and be it that there is more than enough cash flow and net income most standard banks would be hard pushed to come to grips with our financial situation. It is not a nice neat one income tick the box application.

The CBA quoted me 4.44% and she mumbled when I mentioned that I wanted to release one of the securities.

Thanks in advance.
 
CBA don't offer 100% offset with fixed loan, just like most of the majors. Adelaide Bank do though. Is a fixed rate the best thing for you now? Do you need IO? Can you split some fixed and variable?
 
You say you have 1.8 Million in security and it sounds like they are crossed. You owe 750K.

You cannot have fixed with Offset @ CBA. So you have to choose- either stay, or leave. Adelaide Bank is the only choice for fixed with offset. You'll get 4.59% for 3 years, 4.79% for 4 years or 4.89% for 5 years @ Adelaide.

Those are all great rates. Anything under 5% is super cheap...BUT...
CBA is offering you 4.44% variable, and right now it seems very very likely variable rates will fall even further... so you may end up at 4.19% at CBA as soon as next month if the RBA cuts 25bpts, and 3.94% a month or 2 later if the RBA cuts another 25bpts.

Given that it looks as though it's likely variable rates have another 0.5% to go ( maybe more- who knows? The RBA doesnt seem to. It's a wait and see situation) , and given the fact 3-5 year fixed rates may yet fall below 4% in the coming few months also... Unless a fixed with Offset is uber uber critical to you right now - just stay where you are take the 4.44% variable Offset and wait and watch what happens over the coming few months. if the Adelaide fixed offset product gets below 4% - maybe you can switch across to them then.
 
handyandy said:
Hi all

Haven't time to do a lot of homework as of to Thailand on hols.

Just found that an interest only loan was switched to P & I. They hit me for a $5600 principal payment.

Loan is for $750k lender is CBA on their wealth package so get a whole .15% discount.

Currently LVR on this portion of our portfolio is just under 42% with 3 properties secured against the loan, properties are worth about $600k each.

I want to put this loan back on a fixed interest only loan (with 100% offset) for 3 or 5 years. Also want to release one of the properties and end up with an LVR of about 60%.

So the question is what interest rate should I be able to achieve with the CBA and also with other organisations? How much effort will it be to move the loan?

Don't really want to apply for a new loan (with another bank) as we live of rent and be it that there is more than enough cash flow and net income most standard banks would be hard pushed to come to grips with our financial situation. It is not a nice neat one income tick the box application.

The CBA quoted me 4.44% and she mumbled when I mentioned that I wanted to release one of the securities.

Thanks in advance.
Click to expand...

CBA can price their fix rate as well. - can go to 0.25% off the fixed ( Traditionally we can only get this for new customers...but lately we have been getting the same for existing customers too) ...so 4.49% for 5 years. Just ask and you shall receive :p
 
Is St George offering a similar discount with their 3 and 5 year fixed rates? Would they go lower than 4.49%?
 
neK said:
Is St George offering a similar discount with their 3 and 5 year fixed rates? Would they go lower than 4.49%?
Click to expand...

4.44% 5 years is possible ( so 0.05 extra) for existing ( this was 5-6 weeks ago...havn't done any recent existing with St George this month) .

With ST George it has to be NEW to bank(currently) if you want to go below 4.44% ---either new to bank OR existing customer with new sub $150- 200k split loan or new loan.
 
Brady has provided the perfect solution - do a combo loan.

Have part fixed and part variable so you can use the offset facility against the variable portion.

CBA, RAMS, St George and Westpac provide an excellent feature whereby you can rollover your IO period for up to 15 years. Be careful refinancing to another lender as you would need to go through the reassessment process every 5 years.
 
A number of other lenders away from Adelaide Bank offer a fixed rate on everything from 1 year to 5 years including the majors.

3 years - 4.09% with 100% offset account.

Cheers
 
handyandy said:
Just found that an interest only loan was switched to P & I. They hit me for a $5600 principal payment.
Click to expand...

Did they do that without any prior letter/email/notification sent and received by you?

If so, that is very bad business form.

We've always received notification about 1 month prior that a loan was rolling over to P&I on a set date if they did not hear from us to extend the IO period further.

Have they done that in the past?
 
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