What mortgage rate should i be paying

Viewing 8 posts - 1 through 8 (of 8 total)

Ben
Participant
@benny77
Join Date: 2016
Post Count: 4
June 5, 2016 - 4:44 pm
Hi all,
First time posting here. We have a mortgage of $970k on PPOR with value of $1.7M. Currently finance with NAB via homeside and our mortgage rate 4.26%. We have good capacity to pay and have a line of credit for $250k with NAB for use for deposits for some IP we looking at now. Should i be able to negotiate much better than 4.26% based on short summary of circumstances? Interested to know what i should be targeting if i call the bank to negotiate something better.
Thanks.
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
June 5, 2016 - 5:55 pm
Hi Ben
At that sort of lvr you should be done sub 4’s.
Being an interest only loan the Bank will probably charge some form of premium but still should be less than what you are currently paying.
Go back to them and tell them you what a payout figure as you are looking at switching lenders and i think you will be surprised how they jump.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Ben
Participant
@benny77
Join Date: 2016
Post Count: 4
June 5, 2016 - 6:41 pm
Thanks Richard, i should have mentioned it’s P+I loan not interest only.
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
June 5, 2016 - 7:03 pm
Although the line of credit will be interest only.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Ben
Participant
@benny77
Join Date: 2016
Post Count: 4
June 5, 2016 - 7:14 pm
Correct.
DeanCollins
Participant
@deancollins
Join Date: 2015
Post Count: 376
June 6, 2016 - 12:47 am
Richard Taylor wrote:
Hi Ben
At that sort of lvr you should be done sub 4’s.
Being an interest only loan the Bank will probably charge some form of premium but still should be less than what you are currently paying.
What about locking in for 5 years Richard? Whats the going rate for <70% LVR on 5 year fixed IO?
Corey Batt
Participant
@cjaysa
Join Date: 2012
Post Count: 1,010
June 7, 2016 - 11:21 pm
Definitely should have a rate with a 3 in front of it. Homeside may not sharpen their pencil to get to that level as their primary market isn’t for CHEAP rates – so you may well be better served looking at the greater lending options for your situation.
It does all come down to your greater financial picture however – if the lender is helping you move closer to your investment goals it may well be a valid part to pay a higher premium to help you move forward.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
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Investment Focused Finance Strategist - servicing Australia-wide
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
June 8, 2016 - 9:26 am
Ben wrote:
Hi all,First time posting here. We have a mortgage of $970k on PPOR with value of $1.7M. Currently finance with NAB via homeside and our mortgage rate 4.26%. We have good capacity to pay and have a line of credit for $250k with NAB for use for deposits for some IP we looking at now. Should i be able to negotiate much better than 4.26% based on short summary of circumstances? Interested to know what i should be targeting if i call the bank to negotiate something better.Thanks.
yes – you should be able to get that rate down.
I’m sure any big 4 lender would offer a variable rate with a 3 in front of it.
Even ING is pricing loans above $150k at 3.94% with no negotiations required.
As Corey said though – rate is just one factor.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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Mortgage Broker assisting clients Australia wide Email: [email protected]