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in my opinion the 2 year rate has bottomed out with westpac being the first to increase theirs but ING threw a spanner in the works this week by dropping theirs to 4.99%.
probably best to post in the accounting forum to get clarification on this.
a couple of things to consider is possibly going for a lender that has a common debt reducer as you have joint debt with an external party. Most banks would take the full joint debt against your PPR where a couple will accept only your portion of the debt.
A few months ago we were able to get 1.1% or more from westpac for loans above 1 million but in the last week the best we have been able to get is 1.07% discount
andy28 wrote:Lenders often offer off-the-shelf interest rate discounts for borrowers of larger amounts. For example, the Commonwealth Bank offers their Wealth Package with different tiers of discounts, maxing-out at 0.7% discount for borrowing $500,000 or more.I really don’t believe that this is the real maximum discount though. I would like to know what kind of volume discounts individuals are currently achieving, for balances over $1 million, $5 million, $10 million etc., from the Big Four banks.
Can anyone here comment from their own direct experience? Thanks
Andy
Markyinvest wrote:Thanks Jon thats great information – do you have offices in sydney? I would like to sit down and go through a few scenarios. Our situation is that we have been looking for a few months and have found a few properties which we would like to place offers.Hi Mark, can you please email me your contact details to [email protected]
Markyinvest wrote:Hi Guys,Just wondering if any can tell me the best variable interest rate? I dont think we are getting a good deal with CBA and just wondering whats out there. Thanks
Mark
Hi Mark, it really depends on your loan amount, property value and features you require. if you dont mind providing that then we could provide some more accurate information. But generally heritage at 5.84%, suncorp at 5.88% or AMP at 5.90% is pretty good.
Markyinvest wrote:Sorry guys the other question I had was its a good time to go variable or fixed considering how much the rates are?Depending on you personal circumstances it could be a good time to lock away some of your loan. You could have some variable and some fixed which would allow you to make extra payments if you have the ability. It is really dependant on what your plans are and your unique circumstances. Currently st george is 5.79% for 3 years fixed which is pretty good imo
second what Jamie said. Residential no, commercial or business borrowings sometimes yes with some specialist lenders.
yes keep them separate, setup an offset account and put any principal payments in there to keep yourself flexible.
brizziegirl wrote:Thanks for the additional input – even if I paid for the valuation through the CBA I imagine the same potential risk would still be there?And Derek, sorry I didn’t credit you with your feedback – sorry for my confusion.
Cheers everyone.
no the valuation is done via valex so you dont have to put your details in
Yes good advice above but a couple of extra things, firstly if you want to get the properties valued upfront CBA has a $99 special on customer ordered valuations so you could get this done on the properties before making decisions or submitting an application. Also since rates have come down your servicing may have increased but this is hard to know without knowing the full details.
Qlds007 wrote:Really Jon i cant think of any lender who insists that you have to be GST registered where you are declaring a turnover of less than $75,000.Done many a lodoc loan where the client is apply for $150K and is only earning $60K or so per annum.
Dont have to be GST registered to receive investment rental income so that is purely from the registered ABN.
Cheers
Yours in Finance
Hi Richard, CBA, Homeside, Westpac and ANZ just to name a few all require 12 months BAS statements under low doc policy not matter what the declared income is.
renel wrote:I have been told a few times that it is best to go through a broker for finance rather than direct to a bank as the broker will know what features I will need on an investment loan. I have seen at least 3 smaller lenders that are not represtented by any broker, that offer considerably lower interest rates (ME Bank, UniCredit, CUA). If I was to go to them direct myself, what features do I want in an investment loan? I am about to purchase my first IP, hopefully the first of many!There can be a difference in serviceability between lenders particularly for investors when some lenders take into consideration negative gearing. I would not consider any of the lenders you mentioned as having better rates then some of the other banks. Particularly if your loan size is on the upper end cause they are very negotiable.
jonThe idea about paying interest only on investment or tax deductible debt is when you have or plan to have non deductible debt. So any principal payments would be paid into the non deductible loan and reducing that before paying off any deductible debt. If you dont have any non deductible debt at the moment but plan on buying a PPR in the future then still keeping the payments as interest only and having an offset account where extra funds can go into is a good idea as you can then take the surplus funds out in the future with out losing the maximum deductible interest.
JonHi Richard, i never said it was a legal requirement. I was just stating the general rules with most of the majors at the moment. Even as you said your declared income is under 75K you dont need to be registered for GST a lot of lenders will still have that as their requirement.
there are a few general requirements for low doc loans now. Firstly you need to be registered for GST and have an ABN for 2 years. You will also need to verify you income via your last 4 BAS statements. Your LVR will also need to be below 80% and if you want to avoid mortgage insurance 60%. These are just general requirements but will allow you to have a pick of a few lenders.
If you are tight on cash flow then fixing might be a good option cause this will set your payments for the next few years and allow you to budget your other expenses. St George has a 3 year fixed rate of of 5.79% with a $700 refinance rebate plus what we give you on top of that.
i would agree that you need some type of protection. whether it be life, income protection or loan protection. Best to speak to your financial adviser and get some quotes from different sources.
hi property jockey, split sub accounts means separate bank accounts for each loan. most lenders have packages that allow this with no extra fees.
i would personally split it into separate sub accounts for each property cause there is then no grey area in regards to what debt is associated with each property if you sold one.
