Market interest rates

Viewing 6 posts - 1 through 6 (of 6 total)

propertyboy
Participant
@propertyboy
Join Date: 2008
Post Count: 232
February 15, 2011 - 12:32 pm
Just trying to gage what current rates are everyone is getting.
I have $1.1m in debt.
Three seperate investment property loans.
The current interest rate I am getting is 6.96% on all loans.
Is anyone getting a better rate than this at the moment?
Could I renegotiate a better rate or am I getting the best out there on the market at the moment?
Just want to know if I should devote time to refinancing or not.
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
February 15, 2011 - 8:37 pm
Hi Propertyboy
The rate you’ve got sounds ok. You could probably get something a little better but you (or your broker/banker) would have to work out whether the exit/application/govt. fees associated with refinancing three loans will justify a small decrease in interest rates.
Do you have any concerns with your current lender(s)? Are they enabling you to access equity to grow the portfolio? At the end of the day, it’s not all about the rate.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
February 15, 2011 - 10:14 pm
As Jamie has mentioned it is not the best rate but in saying that it is not the biggest loan.
For 20 bps here or there i wouldnt not waste time thinking about refinancing but on focusing how to buy your next IP.
The saving in annual interest will probably be taken up in the costs of switching.
Be suprised how much more important interest rates become when you have 20 properties.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Alistair Perry
Participant
@aperry
Join Date: 2004
Post Count: 891
February 15, 2011 - 11:36 pm
Hi Propertyboy,
I agree with the previous posts. I would add that your concern is about the wrong thing, a 0.1% or 0.2% isn't going to mean a lot to you at the moment in dollar terms, where there may be potential savings and what can make it easier to get to the 20 properties mentioned by Richard, or whatever else your goal is, is to make sure that you have an optomised loan and payment structure. If the loans you have are not set up well, or do not have features that allow you to minimise tax then that would be a good reason to look at refinancing.
Regards
Alistair
Mick C
Participant
@shape
Join Date: 2010
Post Count: 1,099
February 28, 2011 - 7:24 am
propertyboy wrote:
Just trying to gage what current rates are everyone is getting.
I have $1.1m in debt.
Three seperate investment property loans.
The current interest rate I am getting is 6.96% on all loans.
Is anyone getting a better rate than this at the moment?
Could I renegotiate a better rate or am I getting the best out there on the market at the moment?
Just want to know if I should devote time to refinancing or not.
6.99 % is not a bad rate…the question is- are you happy with the lender? if so- it’s pointless changing.
Regards
Michael
Mick C | Shape Home Loans
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ksherwell
Member
@ksherwell
Join Date: 2007
Post Count: 125
March 3, 2011 - 3:51 am
Hi Property Boy, I'm not a broker, or a lender I'm a referrer, with a cash back refund model. St.George for a limited time are offering 6.8%, plus $700 to refinance. We get paid 'finders fees' by all lenders as we have direct agreements with them, I then refund 65% commission back to the borrow in this case you. for $1.1mil, you will get $2145 + the $700 from St George if you refinance. Just complete our 2min online form and I will refer you to a St George mobile banker or another lender if you wish.
regards Kane