What is your current home loan interest rate? Select the rate closest to yours on your main property.
Provide details in the thread…
Bank:
Rate:
Type: variable/fixed
Offset/redraw:
Happy: Yes/No
Comments:
This will help other Ozbargainers determine if they are getting a good deal or being ripped off. A home loan almost everyone's biggest expense so its important to understand where your rate sits within the home loan market.
Less you borrow, less risk to the bank, and hence the lower interest rates.
Risk doesn't scale linearly with amount borrowed - for example, after taking into consideration the likelihood of you having the ability to repay the loan, the bank may feel there is negligble risk from 400-550k, substantially increasing risk from 550k-700k, and unwilling to loan over 700k due to excessive risk.
Who said it did? Just saying smaller players are more risk adverse.
Maybe a broker can confirm but i reckon the larger the loan the cheaper the loan
It does get cheaper as the the loan becomes larger, however you also need to earn a lot more. On the same income, big 4 banks tend to lend more, but at higher interest rates than say UBank.
Does UBank offer 100% offset?
@zealmax: I thought based on some of your comments, you may have an idea. Furthermore, other posters could have also read this question and responded. It seems like you're a little bit touchy … wouchy …
This post is related to users having definitive loan knowledge… and posting their rates. Yes?
Are you in the right thread?
Would you like a tissue?? .. possibly a Beer?
@vinni9284: It was a product specific question, you can't possibly expect me to know random product information, nor am I qualified to be giving mortgage advice. My original statement was simply stating, that there are other factors to who you mortgage with, besides interest rates. I am sure people with investment properties in particular, will agree with me on this.
@zealmax: It was only a question as I thought you were with them. You could have been nicer with your response. Even if you were qualified to give mortgage advice, and if I considered taking the next step I would have got formal, written confirmation. "Caveat Emptor"
You still need a Beer though! … have one on me … personally I like Quilmes … Argentinian Beer …:-)
Im 25 (girlfriend is 25), with a loan of $320k @ 4.1%
Just interest rate doesn't really include all risk factors and loan size etc.
Bank: Commonwealth
Rate: 4.1
Type: variable
Offset/redraw: 3 offsets
Happy: Yes
Comments: Could be better, but it'll do
Bank: NAB
Rate: 4.13%
Type: Variable
Offset/Redraw: 100% Offset Account
Happy: Yes
Comments: Interest rate could be lower, but reasonable enough I believe.
Bank: Westpac
Rate: 4.02%
Type: Variable
Offset/Redraw: 100% Offset Account with $395 PA fees
Happy: Yes
Comments: They can do better. IMO, it's all a game and how you play it. I have one friend that has been offered 3.95%, variable/100% offset ~ $390PA to "stay" with Conbank. Conbank wouldn't budge until his broker formally applied a release form to Conbank for an exit and move to another bank.
In my view, it is advantageous if you have <80% LVR and decide to switch. You have more bargaining power.
There is no point to switch if they are going to value your house and you have to pay LMI.
I think it is still possible to get and interest rate under 4% and have 100% Offset, variable rate.
Cheers
Is that principal & interest or interest only?
My fixed with Westpac just ended and got rolled to a variable rate 4.89%.. Will give them a call next week to negotiate a reduced rate.
Hi JY1,
Yes. That is the variable rate for principal and interest. It used to be 3.99% before they jacked it up.
Cheers
Thanks mate. I guess my target will be 4.0-4.15%
Is that for owner-occupied or investment if you don't mind me asking.. :)
@JY1: Oh … yes, sorry for owner-occupied … they thrash you more for investment :-) Before you call them and try the other Big 4 first (I would say the Macquarie is the new other) and get a better deal on paper if you can. They give you a verbal confirmation however they want you to apply first as they know that you will forward their rate to Westpac to match. Ensure it is "apples for apples" home loan package. Be careful if your loan is >80% LVR as you might have to pay LMI hence you are paying more overall to switch so it's not worth it. I have tried to negotiate with Westpac so many times however they want proof. Westpac mortgage retention customer service said that it is the law that Banks have to provide you their rate on paper/email. However I am not sure at what stage that they have to do this … possibly at preliminary application. Cheers
I am currently with Aussie as below:
Bank: Aussie
Rate: 4.15%
Type: variable
Offset/redraw: redraw
Happy: Yes
Comments: I have recently begun refinancing to loans.com.au at 3.66% comparison with redraw.
I was at 4.2% with Aussie. I asked for a reduction - I wanted 4% to be content but I didn't get it - for that reason I have decided to make the switch.
Bank: Suncorp Bank
Rate: 4.05%
Type: variable
Offset/redraw: offset with $375 yearly package fee
Happy: Yes, when I don't have to deal with them.
Comments: just got married, want to set up a joint account. But want to continue offsetting my loan. Suncorp has no tech features- no android or Apple pay. Bare bones. Not sure what I'll do, happy to hear suggestions.
O/O or Investment?
Mine's Investment
Fixed 3 year 3.99%
and
Variable 4.20%.
Owner occupied.
Bank: Beyond Bank
Rate: 3.73% comparison rate (no fees ever)
Type: Variable
Offset/redraw, both included and free.
Happy: Yes, moved from 4.34 comparison rate.
Bank: ING
Rate: 3.89%
Type: Variable
Offset/redraw: 100%
Happy: Yes.
Moved from CBA who would only come down to 4.2 from 4.5ish. Was a no brainer to switch when we have an LVR of <80%, it's owner occupied and we wanted principal and interest.
May I ask if your still on 3.89% now?
Because that is such a good rate with offset, I’m only getting 3.94% with no offset also with ing
Just checked and we're on 3.84%, not 3.89. I think UBank is the most competitive these days, albeit without the offset.
Yeah I can’t get UBank yet because they have strict lending criteria.
Did you get that rate initially through a broker or you negotiated the rate?
Thanks for the reply pais
The rate was without negotiation, but it was absolutely the best on the market at the time (save for building societies).
I am with ING and the interest rate is 3.80, was 3.91 but I contacted them to release me as I was ready to switch and they offered 3.80, Organge Advantage with 100% offset and variable rate.
WOW if I knew I could be on these low rate i would have gone with an offset.
May I ask if you went with broker or bank initially?
Also, as first time negotiator when do you think I should negotiate the rates (months into the loan)? Since I just got the settled the loan.
Much appreciate your help T-man
Bank: UBank
Rate: 3.74%
Type: variable
Offset/redraw: Redraw
Happy: Yes
Comments: I was with ING and would renogotiate yearly for a better rate but they would never match UBank, plus they would raise the rates after a while anyway. UBank is consistently low and we use a credit card for spending so don't need the offset account.
So they do not offer Offset?
Edit: Redraw is similar to Offset however it is incorporated into one loan account?
Cheers
They don't offer offset.
Redraw means you can put extra money on the home loan and transfer any of it out, but it takes a couple of days to transfer it out.
Thank you!
Hi, may I ask how much ING discounted there advertised rate?
I am in the process of negotiating I’m on 3.94% no offset
Couldn’t go with UBank because they wouldn’t accept my weird income
Much appreciated
IIRC they would follow the cycle of raising all of the rates, and then sometime later dropping the advertised new customer rate on the website down. So when I would renogotiate they would drop it back down to the advertised new customer rate.
Thanks fadetoblaxk
What is the rate you are getting with ing ?
Bank: Bank of Sydney
Rate: 3.54% comparison rate (no fees, 1500 broker rebate)
Type: Owner Occ Variable
Offset/redraw, both included and free.
Happy: Yes, moved from 3.80 comparison rate from NAB. Got 250k velocity points as well.
Wow, that is an awesome rate! You also had an awesome rate @ NAB. I believe that they use rediATM to withdraw cash. Would you know if they charge fees to use other ATMs?
Yes i was very lucky. Got the deal it was posted on OZB.
They do charge for using other ATMs, and the branch network in not extensive. There is a branch in Brunswick in Melbourne, but we haven't had the need to go in to a branch as yet.
Oh, and the credit card included in the package is a visa platinum which gives $8 cashback for every $1000 spend.
Thank you!
Personally I like dealing with cash transactions via normal spending (Until it becomes cashless … ).
Even if I used a non rediATM to withdraw cash every week, I would be out of pocket by $130 PA. Considering I am getting thrashed by Westpac @ 4.02% similar package, I still have to pay their exorbitant $395PA fees …. I still save $265 PA with BOS and get a better rate.
So it's still worth the switch to Bank of Sydney, even if I get 3.8% … with no fees $1500 to transfer.
My mortgage broker is getting a trailing commission (i.e passive income) if I service the loan.
Although, the broker deserves to get paid for their service but I think they should "constantly" bat for you to get a better deal.
He is sitting back getting paid a passive income, whilst I am calling my bank periodically for a better rate/deal.
How are their customer service? Have you tried to rectify an issue? If so, how was it like?
Cheers
@vinni9284:
You can withdraw from supermarkets free of charge. Or use NAB atms they are the same as redi atms
Their service is not the greatest - the online banking portal is average and you can only call them during business hours if you need to speak with someone.
That said, we havent had any bad experience as such… definately worth switching over and saving $$$ IMO
Mmm thanks. With heavily discounted fees & rates, there has to be a trade-off somewhere and unfortunately the service aspect is usually the first.
Their service is not the greatest - the online banking portal is average and you can only call them during business hours if you need to speak with someone.
That said, we havent had any bad experience as such… definately worth switching over and saving $$$ IMO
Bank: ING
Rate: 4.34%
Type: Variable
Offset/redraw: 100% Offset
Happy: No
Comments: They keep upping my rate and offering new customers better deals they refuse to switch me to. If I were to apply again today I'd be on 3.79%! Oh and they just increased the annual fee by $100/year and they removed the 1% repayment rebates that were giving me $30/month about a year ago.
Can they refuse to switch you? Just contact the bank you want to do the switch if you are not happy with ING anymore, 4.34 with ING is ridiculous, they are not one of the big 4, and this rate is even higher than the big 4, Westpac and CBA just offered me 3.92.
One of the specials I saw a lender on our panel (I am a finance broker) release last week:
Bank: AFM
Rate: 3.67%
Type: Variable
Offset/redraw: Redraw
Happy: Yes
Comments: Special rate for June 2017 only (owner occupier loans max 80% LVR over $200k)
Also the NAB first home buyer fixed rate of 3.69% for 2 years with bonus 350k NAB points is a good one if you are looking to get in to the market.
Currently on:
Bank: Westpac
Rate: 3.65% for first 2 years, then reverts to their standard variable (almost one year in)
Type: Variable
Offset/redraw: Redraw with $25 fee
Happy: Somewhat, extremely complicated and long-winded application process where they lost our documented numerous times
Comments: Was a special on their Flexi First home loan, was initially 3.75% but they cut interest rates by 0.14% down to 3.61%, then hiked them by 0.04% to 3.65%. No frills, have to pay for redraw ($25 per redraw). We don't redraw often so works for us, to dump our savings into the loan and redraw when required, we save more than $25 in interest over the period that it sits in the loan.
Our loan was a little complicated as we setup guarantor with my wife's parents to borrow 100% of the property value and pay no LMI. We then dumped our deposit and savings into the loan and have it available as redraw if every required.
The documentation required for the guarantor piece was a little complicated from Westpac's end and they lost documents 3-4 times and asked us to fill out all of the documentation each time. Was much easier with CommBank the first time.
We'll be shopping around for a new product once the 2 year intro interest rate has expired.
Bank: HSBC
Rate: 3.78% variable, 3.95% 3 year fixed
Type: 50/50 variable/fixed
Offset/redraw: 100% Offset on variable, can't recall redraw features as never used
Happy: Yes
Comments: I have no fees and rates seem decent but can always be better. There was one time there offered 0.25% less to new customers and when I argued that they should be giving the best rate to their loyal customers, they agreed to reduce my rate by 0.20%. However this 0.20% rate cut is added to my "lifetime discount" on their standard rates rather than having to renegotiate it every time.
Bank: Bank of Sydney
Rate:3.5%
Type: variable/fixed : Variable
Offset/redraw: Offset
Happy: Yes/No : Yes
Comments: Owner occupied.
Ing
3.94%
No offset
But I think they have a better rate if you go through a broker. Because when I rang asking about my home loan details they asked whether I went through a broker or bank.
Bank: CBA
Rate:3.80%
Type: Variable
Offset/redraw: Offset and no annual fees
Happy: Yes
Comments: Was happy to get this rate with CBA as we have other loans with them. Probably could have got cheaper but happy with out decision.
Bank: Reduceloans.com.au
Rate:3.54
Type: variable/fixed : Variable
Offset/redraw: Redraw & offset linked to 2 cards
Happy: Yes/No : Yes
Yearly fees: free
Comments: Owner occupied.
I wanted to go with these cheaper loans but I don't know if there is any risk associated with them?
Generally speaking the most common concern we hear from our clients about non-bank lenders (so far as risk is concerned) is that they are not ADIs and, as such, their offset accounts (where most borrowers would be holding their savings) are not covered by the Australian Government Financial Claims Scheme (details here).
Another (lesser) concern is that non-bank lenders have not committed to the Code of Banking Practice (a list of subsribers to the Code can be found here). The Code provides some further protections and guarantees above what is required by the applicable state and federal legislation.
Hope this helps.
There are some key factors that affect what you will pay, here are the main ones
Loan Size - larger, will be a lower interest rate
Loan to Property Value Ratio (LVR) - lower will be a lower interest rate
Owner Occupied vs Investment - Owner Occupied will typically be lower
others that could go either way
Fixed vs Variable
Basic vs Fully Featured (typically offset being the main difference)
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Does Uno provide information regarding SMSF LRBA loans?
Actually not yet, no. We've not been accredited to write those so haven't yet focused on them but it's something we're exploring this coming year.
Thanks for the prompt reply and information, much appreciated
@RickyCruise: no worries! If you do kick it around and have any feedback for how to improve it, let me know!
Can someone comment on the quote I got from Naritas? I am about to take it:
Lender: NPBS
Rate:3.99
Type: variable/fixed : Fixed-3-years
Offset/redraw: offset
Yearly fees: free
Comments: Investment property, not home owner.
I'm 35 years old with fixed income and does not own a home (but decided to invest instead of owning).
Bank: RAMS
Rate: 4.19
Type: fixed for 5 years
Offset/redraw: redraw
Happy: Yes
Comments:
Locked it in for 5 years, as to me things look uncertain from now to 2022. Since I'm looking after a family of 6 on 65K a year, I want a guaranteed amount i'll be paying every week. In 5 years…anything can happen.
WOW
Bank: UBank
Rate: 3.74%
Type: variable
Offset/redraw: Redraw
Happy: Yes
Comments: First home loan, so don't have anything to compare it too. But it was a easy process to get it done. No redraw, not a big deal just use a credit card or redraw on the loan (free redraws).
I would like to know which institutions the 3 people in the poll that are getting 3.2% or lower are?
Bank: nab
Rate: 3.95
Type: variable, P&I, ppor
Offset/redraw: offset
Happy: Yes
Comments: rate doesnt factor much these days- get charged little interest. Been saving and payinh into the offset to a point where theres only a few grand left. better to look elsewhere if you can refinance out
Don't you have to take into account loan amount, bank fees, and whether it is principal and interest or just interest only? Investment primary property of residence? Also need to consider how much the bank is willing to lend. Small players lend you less. Less you borrow, less risk to the bank, and hence the lower interest rates.