Hi All
We know rates are tipped to drop, but given banks are only passing on around half of the cuts, a low fixed rate can still save you more money as you can get an immediate benefit from today as opposed to waiting for the drops, so worth doing a calculation for your situation, eg:
If your rate is 3.24%, fixing at 2.74% will save you 0.5% each year.
On a $500k loan, that is a saving of $2500 every year.
Given many banks are only passing on 0.1-0.15% each cut, how many cuts will it take to catch up to the immediate benefit of 0.5% from today? I would say at least 4-5 times, bearing in mind the longer delay in the cut, the more you are paying each day.
If you're saving 0.5% and go with a lender giving rebates eg. St George 2.94% plus $2000 bank rebate, plus our Bundle Rebate of $1500, that's a further $3500 in rebates, plus $2500 interest savings, you are getting a benefit of $6000 in just one year!
Excellent 1-5 year fixed rates at Citibank:
2.74% owner occupied CPR 3.26%
2.99% Investor CPR 3.55%
Plus FREE rate lock for 60 days from submission (most lenders charge a 0.15% rate lock fee).
Citibank fixed and variable rates are the same on either package or basic product:
- Mortgage Plus Package $350 annual fee, incl offset, redraw, credit card. OR
- Basic, no annual fee, $399 application fee, free redraw.
Other low rates we have achieved at the larger banks:
Owner variable:
2.94% CPR 3.54% St George Bank - $2000 rebate per property. Basic product, no annual fee, no offset, free redraw.
2.96% CPR 3.35% Citibank variable - see above.
+ we have got up to 1.9% discount with other lenders - just ask me.
Investor variable:
3.19% CPR 3.45% Firstmac Broker Special, no annual fee.
3.29% CPR 3.67% Citibank - see above
+ we have got up to 1.9% discount with other lenders - just ask me.
Current best bank rebates:
St George/ Westpac = $2000 per property (eg. 3 properties = $6,000) - avail in both Package ($395 annual fee, incl offset, redraw, credit card) or Basic product (no annual fee, no offset, free redraw.) Rates see above.
ANZ = $2500 (>$250k loan size) to $3500 (>$700k loan size) - avail in both Package ($395 annual fee, incl offset, redraw, credit card) or Simplicity Plus (no annual fee, free redraw, no offset). Best ANZ rates ask me.
0.3% Bundle Rebate
In ADDITION to bank rebates, Bundle Home Loans gives a rebate of 0.3% of loan size (net at drawdown) for ANY bank or product.
Len
Bundle Property Home Loans
T: (02) 9698 7186
M: 0422354868
E: [email protected]
Disclaimer:
The information provided is for general education purposes only and is not intended to constitute specialist or personal advice. This has been provided without taking into account your objectives, financial situation or needs. Because of this, you should consider the appropriateness of the advice to your own situation and needs before taking any action. It should not be relied upon for the purposes of entering into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy.
Citi bank is dead to me because of customer service.