i recently got a loan for an investment property that was 5.25% for the first 12 months then back to the veriable rate after that. it has a re-draw facility and no fees for early or extra repayments.
This is with members australia credit union, http://www.macu.com.au i think this is a great place to optain a loan, i’d be intrested to know what sort of deals everyone else has got’n themselfs out there??
Food for thought,
Those honeymoon rates always look attractive. But the comparison rate is 6.46%. The loan reverts to 6.55% and there are break fees for three years if you refinance or restructure.[xx(]
It is an ok deal but there are better deals out there.
Josie
ANZ, moneysaver is the one I have. This is I would say one of the best. 5.97% variable with $10/m fee. It came up in the top with cannex survey.
Ta, Paul
what is the $10 fee for?
you pay intrest plus a $10 fee is that right?
if so why do they tell you they charge this, isnt paying the intrest the fee, lol, its a fee for paying a fee, bloody banks!!
What you want to do is find a loan with the lowest ongoing cost. If you can avoid break fees then that’s good also.
The MACU product will NOT give you the lowest ongoing cost. The comparison rate is 6.46%.
The ANZ Money Saver is getting better. Its comparison rate is 6.13%
How about something like Heritage Building Society Value Plus loan (www.heritageonline.com.au). It’s comparison rate is 6.00%. You can only repay P&I with this loan (no interest only). But all I’m illustrating is I recommend people talk to a broker because they can compare a lot more loans/products with industry knowledge.
I’m not sure how Cannex rates their loans – but I disagree with them.
Now before anyone asks “what is a comparison rate?… here is an extract from our next newsletter
==============================
“On 1 July 2003, it became law for lenders and mortgage brokers to advertise and disclose Comparison Rates to borrowers. So what are they?
A Comparison Rate should represent the total cost of a mortgage product. It is to take into account all ascertainable costs (including the interest rate) at the time of taking out the loan. This cost is then to be reflected in an annual percentage rate (or Comparison Rate). A Comparison Rate schedule is to accompany the application form for residential mortgage products. Comparison Rates are also required to be displayed (or advertised) where any interest rate is displayed. This legislation does not apply for investment or business purpose loans.
This legislation was introduced to assist consumers in comparing loan products. It is particularly useful when comparing a honeymoon product with a normal variable loan. In fact, this legislation will probably result in the death of honeymoon interest rate products (because they revert to a higher rate after the honeymoon period and this is reflected in the Comparison Rate).”
===================================
I hope this helps.
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.au
The topic ‘low intrest rate’ is closed to new replies.
