Whats your interest rate?

I

IFBB

Just reviewing my rates with the Commonwealth, and i think i am paying too much.

My rate as of yesterday was 7.06% on a variable loan, and that is with the .5% discount from my wealth package which costs me $350 a year.

Can i get some examples of other peoples rates and which bank they are with? I know there are a number of variables, and everyone is different, but i think i have shown to them i am a valued customer, and a rate in the 7s atm is just too high.

Thanks
 
What's the LVR, what's the loan amount, what's the property value, do you need an offset account, what are your future goals, do you need an offset account, what about fixed rates, etc?

Most importantly, what was the basis for choosing the CBA in the first place?

From the sounds of it, your loan is likely to be a fairly small one (in the grand scheme of things). It's certainly possible to get a much cheaper interest but you need to make sure that it's appropriate to your needs.
 
The loan is for $170K, i used it to purchase my first IP 2 years ago.

The property now would be worth im guessing between $220-230K with my renovation, and like units in the area. I have $65K in my offset account currently.

Reasons for going with the CBA was i had been with them through school, used them to get my first car loan for a credit rating, and a branch is 2 mins from home.

A good friend has just purchased his first property, with a credit union for 6.4%, and he doesnt need to pay any fee for a bonus discount. If i were not to pay it, mine would be in the vicinity of 7.5%

PT Bear - In the grand scheme of things, id like to continue to buy many properties in the future, and for the time being have my next purchase planned between 12-24 months. Thats the timeframe i have predicted that things such as the economy/house prices will become clearer. I may be wrong, but that is my assumption for now.
 
is it true there are banks that are hard to get money from and others are easy and by getting loans from the hard banks first when they wont lend you anymore you can go to the other banks..? because you cant keep getting loans from the same bank?
 
At $170K, the problem you might be facing, IFBB, is not the high level of the bank's interest rate, but the low level of the bank's interest in keeping your business.

You probably need to add a zero to your loan amount to get the bank keen.

(But then, just think of what the bank might be willing to do to keep you happy when you add another zero after that? ;) Or maybe, you'd better not. :eek:)
 
Your LVR is about 77%.

With a loan amount of $170k you can certainly get cheaper interest rates, without the fees. Most of these loans don't have an offset account however.

If an offset account is required then a 0.5% discount is about as good as it gets for this loan amount.

There are some exceptions with cheaper rates, no fees and offset accounts, but not with the big four lenders. If you do consider moving, keep in mind that a 0.1% discount equates to $170 per annum saving. Make sure to ensure that it's worth the cost of switching before you do this.
 
im with me bank currently and with the members package $395 pa with the offset account i have a 6.74% but after this rate cut it will be going down to 6.49% (dont know when it will be put in place though)
only thing is you cant get IO with the members package
 
BMan said:
only thing is you cant get IO with the members package
Click to expand...

Some people will drive a car with a flat spare too : )

The ME pack is really deisgned for a ma and pa home loan where they will not move out and never rent the place.

It has its place, but for many investors, that place is not for their IP

ta
rolf
 
Hi IFBB

for a loan over 150 but below 250 k the Smartsuite Product from Bendigo Adelaide is an ok option 6.79, with a $ 10 a month fee.

You might be able to get a redn on the 595 app fee at the moment too.

Use that info to chase CBA and see if they will better the deal, coz I dont believe its worth moving JUST for rate

ta
rolf
 
im with Qantas Staff Credit Union, they are really good, no fees for anything. I have a loan for 270k at 6.74% with offset account. They only do IO for investment properties tho. they used to be quite strict with members by having to be related to someone that works for Qantas, but I think they have recently opened it up to the public.
Awesome Credit Union!
 
Thanks guys.

Not really planning to move, unless the offer is way too good to refuse. Just grabbing some examples to see what i can throw at them to try sweeten the deal.
 
i bundled all my loans with one lender a few years ago, AHL. 6.38%. Loan amount is seven figures on a circa 50% LVR.

(assuming they pass on the recent 0.25%)
 
Heh. We're paying about 7.57% on a loan sub $100k through Homestart. Our LVR is probably 30-40%, no idea what this house is worth, similar houses sell for anything from $280-350k depending on how nice the garden is (ours is a barren wasteland, yay for new builds). Somehow doubt we could refinance though :(
 
I'm with CBA, MAV package, same as you. $305,000 loan. I was getting 0.5% discount, but last week broker approached them and got 0.8% discount.

I am as of 2 weeks ago in a position where I can avoid mortgage insuracnce, so I may move in the near future if CBA doesnt pass on the next few rate cuts.

100% offset is a must for me, which does make it harder to find a competetive rate.
 
CBA have the no fee variable at 6.86. but would have to look if it has the offset accoumt and then you dont need the wealth package
 
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