Current Home Loan interest rates

K

kamchatsky

I am currently with ANZ Breakfree Package with 1.00% discount (4.88%) for standard variable rate. I have just been offered 1.25% discount (4.74%) with Advantage package from St George via another broker. I am seriously considering moving as I am looking to buy my first IP (I already have PPOR).

Just wondering whether there are better deals out there with these interest rates? I am looking at borrowing $1M plus including PPOR and IP.
 
1.25% discount with St George is quite incredible. The online lenders may come in a bit better, but not by much. Combined with the extra features of a mainstream lender over an online lender (more flexibility, offset accounts, etc), I'd say it's an excellent deal.

I've got to ask though, how much are you borrowing and under what circumstances (LVR, employment type, etc) to get that level of discount. It's rare for any lender to be able to offer discounts of 1.10% even when you're borrow around $1.5M. This level of discounting is seriously eating into the banks margin.
 
Also - if you're needing to borrow greater than 80% then you're going to have to pay a new LMI premium with the new lender.

Are you sure the STG banker isn't offering you a slight discount on the 2 year fixed loan?

Cheers

Jamie
 
edison said:
I am currently with ANZ Breakfree Package with 1.00% discount (4.88%) for standard variable rate. I have just been offered 1.25% discount (4.74%) with Advantage package from St George via another broker. I am seriously considering moving as I am looking to buy my first IP (I already have PPOR).

Just wondering whether there are better deals out there with these interest rates? I am looking at borrowing $1M plus including PPOR and IP.
Click to expand...

1.25% discount is superb. What is the borrowing value?
 
Just to give you more info on the borrowings:

PPOR: 500K loan, valued at ~1M
IP: Looking at buying 550-600K

So I definitely have some equity on my PPOR to borrow 100% on IP but he said that I should do borrowing 80% on my IP from standard loan, and 20% from newly setup LOC so it won't cross securitise my PPOR.

I still need to read more about it and understand how it all works but the offer is definitely 1.25% discount off standard variable rate over life of loan, which is really attractive.

He did say that both me and my wife's total capacity is like 2.6M so probably they want us to borrow that much but just not have to draw it all down.
 
edison said:
So I definitely have some equity on my PPOR to borrow 100% on IP but he said that I should do borrowing 80% on my IP from standard loan, and 20% from newly setup LOC so it won't cross securitise my PPOR.
Click to expand...

Good move. My PPoR is crossed with an IP and it is a PITA.
 
Sounds like you will be refinancing a $500k loan + some equity ( presuming $200k equity LOC) + a "pre-approval" for $500- 600k on your IP...given the situation 1.25% discount off the SVR for that borrowing is very good for St George; but my feeling is they will only offer you this amount ONCE you found your IP...as a Pre-approval is pointless at this stage from the banks point of view.

Having said that you may get it a touch lower with online banks, but really not much lower ( maybe 4.65 or something) so i personally would say if 1.25% discount with St George is on the table with your borrowing of under $1m -- GO for it!



edison said:
Just to give you more info on the borrowings:

PPOR: 500K loan, valued at ~1M
IP: Looking at buying 550-600K

So I definitely have some equity on my PPOR to borrow 100% on IP but he said that I should do borrowing 80% on my IP from standard loan, and 20% from newly setup LOC so it won't cross securitise my PPOR.

I still need to read more about it and understand how it all works but the offer is definitely 1.25% discount off standard variable rate over life of loan, which is really attractive.

He did say that both me and my wife's total capacity is like 2.6M so probably they want us to borrow that much but just not have to draw it all down.
Click to expand...
 
edison said:
I am currently with ANZ Breakfree Package with 1.00% discount (4.88%) for standard variable rate. I have just been offered 1.25% discount (4.74%) with Advantage package from St George via another broker. I am seriously considering moving as I am looking to buy my first IP (I already have PPOR).

Just wondering whether there are better deals out there with these interest rates? I am looking at borrowing $1M plus including PPOR and IP.
Click to expand...

that rate is as good as you are going to get from a major.
 
I just refinanced with St George on about $800k of debt and got a 1% discount. I arranged through a broker and the manager at the st George branch I went to was amazed at my low rate - said it was a lot better than his.

Are you sure the 1.25% is available as the table they showed me only showed a maximum of 1% discount. My rate is now 4.84%.
 
MRO said:
I just refinanced with St George on about $800k of debt and got a 1% discount. I arranged through a broker and the manager at the st George branch I went to was amazed at my low rate - said it was a lot better than his.

Are you sure the 1.25% is available as the table they showed me only showed a maximum of 1% discount. My rate is now 4.84%.
Click to expand...

Are you sure your rate is 4.84%? St George variable rate is 5.99% so your 1% would make it 4.99%?
 
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