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Viewing 8 posts - 21 through 28 (of 28 total)
  • Profile photo of DazzlingDazzling
    Member
    @dazzling
    Join Date: 2005
    Post Count: 1,150

    Zippys,

    Locked in less than two weeks ago on a commercial financing deal.

    Fixed for 5 years at 7.17%. Loan is a tad bigger than your amount though…scale effects – don’t know ??

    It was 6.85% when we exchanged contracts with the Seller, and during the settlement process went up by 0.32%…not happy…

    I’m told by my lender the rates have not increased for 4 and 5 yr fixed rates after the recent RBA hike. Variable, 1 2 & 3 yr fixed have though.

    Cheers,

    Dazzling

    “Go hard or go home”

    Profile photo of eesholeeeshole
    Member
    @eeshole
    Join Date: 2005
    Post Count: 63

    Dazzling,

    Can you tell me who your lender is? I’ve shopped around a bit and can’t find any fixed rates below 7.7%+. I’ve tried ING, IMB, Suncorp, Westpac, Citibank, Public Trustee NSW, and spoken to 4 different brokers. Are you getting a special deal or is that what your lender is offering to the general public?

    Zippys, have you made any progress in your enquiries since you started the thread?

    Regards,

    eeshole

    Profile photo of DazzlingDazzling
    Member
    @dazzling
    Join Date: 2005
    Post Count: 1,150

    Hi eeshole,

    I’m with the Commonwealth Bank.

    Have no idea if the rate is available to the general public.

    Cheers,

    Dazzling

    “Go hard or go home”

    Profile photo of Peter T 123Peter T 123
    Participant
    @peter-t-123
    Join Date: 2004
    Post Count: 29

    na i have made no progress but will sure let you know how i go

    Profile photo of eesholeeeshole
    Member
    @eeshole
    Join Date: 2005
    Post Count: 63

    Hi guys, can I have people’s opinion on which is the better deal?

    Lender 1: $1750 up front fees, variable rate 7.7%, no ongoing fees, will lend 70% LVR

    Lender 2: $820 up front fees, 1yr intro rate 6.99%, thereafter std variable 7.8%, $35/mth a/c keeping fee, will lend 66.67% LVR.

    Given a lend of 66.67% in both cases, I figure you will get an advantage of about $1500 with Lender 2 at the end of year 1. Thereafter Lender 1 cathes up about $550 a year until the end of year 4 at which both will be lineball. Thereafter you will continue to be ahead with Lender 1 each year.

    This assumes current interest rates will stay as they are, for the purposes of the calcualtion.

    Which looks better to you?

    Thanks, eeshole

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Intro rates are often followed by high deferred establishment fees in the first 5 years or so.

    The answer would depend on how long you intend to stay with the lender. And just remember, things change so you may want to move sooner than expected.

    Terryw
    Discover Home Loans
    Mortgage Broker
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598

    You need to find out what the break/early repayment/exit fees are for each loan. Without this information it is impossible to make an educated decision. For example, if lender 1 has no exist fees and lender 2 has large exist fees then I would lean towards lender 1. Find out what these fees are.

    Cheers

    Stu

    Profile photo of eesholeeeshole
    Member
    @eeshole
    Join Date: 2005
    Post Count: 63

    Stuart,

    Lender 1 has no exit fees after the 1 yr intro period.

    Lender 2 has $1800 in the first year, $1200 in the second year, $800 in the third year, then nil after the end of the third year.

    I think Terryw made a good point. Things change. Lender 2 may not always have a lower variable rate than Lender 1. After the 1st year, I may be able to negotiate the monthly fees down. It’s probably not wise to make decisions based on long term assumptions that you have no control over. I suppose the pressures of competition will ensure that the two lenders’ variable rates will always be close to each other.

    Better to take the $1500 saving in year 1 rather than hang out to slowly recover it over 3-4 years.

    Thanks for all the replies.

    eeshole

Viewing 8 posts - 21 through 28 (of 28 total)

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