1.95% Owner & 2.25% Investor 4yr Fixed with 100% Offset @Unibank, Health Professionals, Teachers Mutual, Firefighters Bank + up to 0.4% Broker Rebate
Rates cut from 23 Nov, not yet updated on site.
Owner fixed 80%LVR
1.95% 4yrs P&I cpr 3.61%
2.05% 2yrs P&I cpr 4%
2.35% 2yrs IO cpr 4.06%
This fixed loan comes with Full offset account
Upfront $600 fee
No annual fees
Investor fixed P&I 80%LVR
2.25% 4yrs P&I cpr 3.71%
2.35% 2yrs P&I cpr 3.89%
2.50% 2yrs IO cpr 4.08%
This fixed loan comes with Full offset account
Upfront $600 fee
No annual fees
Eligibility criteria:
* working in the emergency services, education, or health industry
* OR currently studying or have previously graduated from any Australian university
Other Banks Offers
- Adelaide bank from 2.09% owner, investor 2.35% fix 2yrs with 100% offset
- Citibank 1.99% (ask me for further discounts) fixed 2yrs + citi cash rebate + broker rebate
- St George bank from 1.89% fix 4yrs or 1.99% fix 2yrs + $4000 bank rebate + broker rebate
Regarding Comparison Rates (CPR):
There is a common misconception that lower comparison rates CPR will save you more money and better than a higher CPR - not necessarily and can actually be the opposite, here's why:
- "Comparison rates" were invented by the government to reflect lender fees over the life of the loan.
- It is based on a loan size of $150k over 25 years which is irrelevant for most customers. The CPR is actually misleading and can cost you more money.
- If your loan is larger than $150k, then it is better to pick a lender with a lower ACTUAL rate (even if the CPR is higher) as it will save you more interest each year. Of course take into account all the fees eg $395 annual fees, which may be less significant for a larger loan size.
For larger loans, a lower ACTUAL rate (with a higher CPR) is often better than a higher actual rate (with a lower CPR).
- Hence CPR can be misleading and a lower CPR can be more expensive than one with a higher CPR but has a lower ACTUAL rate. The correct approach is to look at the ACTUAL rate plus all fees involved, rather than the CPR.
The CPR may be high for a few reasons:
1. It may incl the $395 annual fee x 25 years = $9,875. This extremely high amount is included in the calc of the CPR for a relatively low $150k loan hence greatly inflates the CPR of such a small loan to make the rate appear much higher than it actually is. It is actually not a huge amount over 25 years relatively speaking (equiv to 0.1% rate difference on a $395k loan size)
2. The fixed CPR is even higher due to after fixed period, it defaults to a higher rate with no discount. In reality, we can always negotiate a competitive discount on variable after expiry of fixed. Also customers refinance after 2-3 years and never stay for 30 years at the same bank.
3. Smaller online lenders have low CPR but often has up $2,000 in application, valuation, legal, discharge fees (which is negligible over 25 years hence the low CPR, but you get hit at every transaction/refinance. The smaller lenders have a lower CPR as they have no annual fee, but often a large upfront/discharge fee. The CPR is a very misleading number and small lenders using a low CPR look better than larger banks even though it may be the opposite.
PLUS up to 0.4% Broker gift card for purchase or refinance (available via broker only, not via the bank)
In ADDITION to bank rebates, we have up to $4000 gift card (based on net of offset ie balance owing) for ANY bank or product.
Rebate paid as VISA gift card up to 0.4% rebate depending on loan size tier. Paid 50/50 at 2 and 24 months after settlement.
Len
Bundle Property Home Loans (Bundleproperty.Com.Au)
T: (02) 9698 7186
M: 0422354868
E: [email protected]
ACL 445947
I think I'll wait for the -ve interest rates to kick in…