Best mortgage offer (Rate and Cashback) ATM for Investment Property - Looking to apply very soon

Looking to submit application very soon
90% LVR,
Borrowing 650K,
Prefer No LMI
Purchase NSW
investment only
Prefer IO but P&I ok
Prefer Offset (but negotiable)
What are the best institutes / credit unions / banks to consider and why?
if you want more info, just ask!
Broker offered 3.64% with Virgin money

Comments

  • +1 vote

    What research have you done to date?

    • +4 votes

      Looked up the www address of ozbargain

    •  

      details given to broker - best he could offer was 3.64%
      had a look at finder.com.au
      had a look at ozB posts
      googled

      I came up with Suncorp, CFCU, Westpac which were not offered
      he compared with AFG - retro, and AMP

      •  

        You do understand that you are asking for IO.

        Did he say 90% LVR with no LMI is not easy to get?

  •  

    Just ask a mortgage broker

    •  

      Yea, I asked one, but no really happy with it, Id like something that I could negotiate or compare with

  •  

    Literally type it in the search in OzB u will find a good deal

    •  

      The Len bundle guy, the Adrian guy, some other person etc

  •  

    You need 80% LVR to avoid LMI. Not sure there are many loans IO that offer offset

    •  

      Thats typically what it is, but were in extraordinary times - CFCU is offering 90% no LMI, but OO, rather than investment.

      •  

        Only for certain professions it seems, not for most people

      •  

        CFCU is offering 90% no LMI, but OO, rather than investment.

        Which product exactly? From what I can see, all require LMI unless borrowing less than 80%.

  •  

    If you don't need an offset account you will get much cheaper rates on fixed 1-2 year would be the sweet spot. Before the rate drop it was going for 2.64-2.69% 2 years. Or you could do a split loan, eg. half variable/half fixed to have best of both worlds. With cash rate at 0.1% there isn't much downward movement left so fixing isn't the bad idea it usually is.

    as for variable IO rates, it is usually quite high for investment, I've been quoted 3.39% with westpac recently, prior to rate cut.

    •  

      Great advice, I will take that into consideration.Thanks

  •  

    People's Choice have good fixed rates right now.
    Investment Loan
    P&I is 2.28% for 2 years / 2.29% for 3 years.
    IO 2.54% for 2 years / 2.49% for 3 years.
    Cashback $4,000

    Not sure on LMI but would absolutely be required at 90% LVR. I previously had it waived at ANZ for my Investment Loan when I was at around 85% LVR but that was pre-Covid.

  •  

    fixed IO 2-3 years
    Firefighters mutual bank, teachers mutual bank, unibank 2.64%
    Westpac 2.79%
    Bank of melbourne/st george 2.84%

    Variable IO
    BANK SA 3.19%

    I'd suggest you think about how much you currently have in your savings and how much you are planning on saving over the next fixed period and have a variable offset split of the current + future savings. E.g 200K variable loan with offset and 400K fixed loan with above rates.

    Feel free to reach out if you have any questions

  •  

    only the bank deemed low risk profession can get no LMI at 90% that is doctors, lawyers, pharmacist, etc. I would think it is harder to get a loan now, because of covid the banks have to be less risky.

    •  

      So hard, the government is dropping much of the responsible lending law

  •  

    Try and put every spare dollar you have to reduce your loan. LMI is almost double in price at 90% vs 85%.