Hi, I’ve been a long time reader of the forum and finally have my first question…I have two current investment loans as p&i with commonwealth bank and have been to see a broker about changing these loans to interest only. She has suggested fixing for a few years to access the best rates and has recommended Macquarie bank as first preference, then suncorp for my situation. I’ve seen on some past forums that Macquarie bank might not be a great option, which makes me nervous – what is it like now? Can anyone tell me about their experiences with either bank.
Thanks!Hi,
Why your broker has recommended Macq bank is probably because they offer a fixed rate of 5.99% ( which is one of the lowest) ; but another banks are offering 5.99% as well + some are lower then that.
She recommended Sun-corp; because they offer one of the lowest Variable rate ( for loan under 80% LVR) – which is not a bad option.
Suncorp—-
– Ok bank, never had any issues- most clients has been happy with Suncorp
– Great variable rate of 6.30%Macquaire bank—
Now this is a different story…they are dis-liked because when the last GFC hit they exited the market, increase the rate, didn’t allow any extra borrowing + was very hard + costly to refinance out of…= a lot of unhappy clients and brokers.
They done it once, they may do it again…who knows…
If your after a good fixed rate; consider ANZ ( Major bank) with a fixed rate of 5.80% 2 years fixed. Or Citibank 5.95% 3 years fixed ( Note Citibank has a Max LVR of 85% – so not the best bank if your planning on leveraging equity above 85%) – but which one you choose will depend on your purpose, overall goals and your investment strategy
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
As Michael has mentioned both lenders have their pluses and minuses but it all depends on what you are after.
Citibank have an excellent Fixed rate but if you go interest only there is a 0.15% loading so not ideal for an investment loan.
Rather than fix the entire loan you might look at fixing part of the loan and if this is the case there are some excellent deals out there with Nil application, valuation costs.
Very difficult to comment without knowing more pertinant data but i have to say neither lender would be at the top of my list for an investor.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks guys, really appreciate the comments. I have an appointment coming up with the broker so will bring up these concerns and go from there
Just ask him or her why they recommended such lenders and post it here and we can comment for you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Do you think the RBA is going to drop rates further/?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Personally Yes i believe they will next Tuesday.
Now do i believe lenders will pass the full cut on …..thats a different matter.
Whilst we havent necessarilly reached the bottom of the interest rate cycle by some way we might have seen a bottoming in the mortgage rates being offered. If not now certainly in the next few months.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi again,
So I’ve talked to the broker and basically the reasoning behind the recommendation for mac bank is the good rate, fees to exit the loan are not like they used to be ( unless the rate is fixed of course) so if wanted to change down the track it’s not too bad and fees associated with holding the loan are low.Hate to say if you Broker is telling you that he recommended Macquarie because their exit fees are less than they used to be he is winding you up.
As from July 1 2011 no lender can charge an exit fee on a variable rate loan so you would wanting a better reason than that.
If it is a good upfront rate then i believe he has limited lenders on his panel.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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