How Much You Owe and What's The PPOR and IP Mortgage Rates?

Aerith-Waifu on 18/07/2023 - 16:41
Last edited 19/07/2023 - 16:46

Not much happening today so I do a boring Tuesday topic, how much you are owing and what's your mortgage rates on your PPOR and IP?

Here is mine:

IP owing $176k paying 6.84% (Ouch)
PPOR owing $235k paying 6.14% (Also Ouch)

Update:

After seeing some of the rates people are getting I called both of my bank today and was able to get good reductions without any resistance

My PPOR is now on 5.84%, a reduction of 0.30%

My IP has now dropped from 6.84% to 6.29%, a reduction of 0.55%

In total my yearly savings sits at $1100 for both reductions with just 2 simple calls lasting 20 mins.

Thanks for those who contributed to this forum.

Financial

Comments

  • SnowDragon on 18/07/2023 - 16:51
    +9

    Time to call your bank and ask for a reduction. ING knocked me down 0.50 after a 10 minute call just by asking. Then of course the following week the RBA pushed them up again. But still, worth asking.

    • vince088 on 18/07/2023 - 17:13
      +2

      i asked in the app, and ING reduced mine by 0.8 this was about 2 months ago

    • Aerith-Waifu on 18/07/2023 - 19:15

      Indeed I will, my IP is with Bankwest.

    • The Wololo Wombat on 21/07/2023 - 13:23

      The RBA, responding to the Government's management of global economic conditions, pushed them up again.

    • supersabroso on 24/07/2023 - 09:07

      That's impressive. However, OP only has baby debt accounts and OP has an investment property so they are set. Doing so well, you're wayyyyy ahead of the rest of us, great work!

  • Muzeeb on 18/07/2023 - 17:05
    +5

    Have you spoken to a work colleague about this?

    • Aerith-Waifu on 18/07/2023 - 19:11

      Dude is a lifetime renter, he isn't interested in owing a house and tied to it for the next 30 years

  • Duckie2hh on 18/07/2023 - 17:13

    My rates are currently at 6.24% interest only.

    • Aerith-Waifu on 18/07/2023 - 19:13

      IP then? Still better than mine

      • Duckie2hh on 19/07/2023 - 09:31

        IP & PPOR same rate.

    • Happyd on 18/07/2023 - 21:13

      Which bank is this?

      • Duckie2hh on 19/07/2023 - 09:31
        +1

        Bank of Melbourne

        • BanannaMan on 20/07/2023 - 16:25

          Yeah I left BoM after they kept hiking me

  • Benoffie on 18/07/2023 - 17:18
    +2

    I went in last week looking at an IP loan. NAB offered me 5.89%. If you're no sub 6, need to shop around.

    Also need to budget for 2 more rate rises. The banks are.

    • Aerith-Waifu on 18/07/2023 - 19:11

      IP loan at 5.89% sounds really good, I will dig around

    • Makaveli99 on 26/07/2023 - 19:46

      Do u have a bank contact, hard to get that rate. I was with NAB

      • Benoffie on 26/07/2023 - 20:28
        +1

        We went through Jomanda Wong at Gouger St in Adelaide. She was very plain speaking and willing to work our not so straightforward requirements around the investments (4 ppl guarantor, 2 IPs, 2 owners, 2 equity property, maximising FHBG and stamp duty concessions).
        We very much like knowing precisely where we stand with a bank, no smoke blowing 🌬

  • JVHifi on 18/07/2023 - 17:23

    PPOR $260k @ 5.84%
    IP $370k @ 5.84%

    • Aerith-Waifu on 18/07/2023 - 19:05

      Which bank? 5.84% on IP sounds really low

      • Happyd on 18/07/2023 - 21:14

        I’m assuming lower LVR?

        • JVHifi on 19/07/2023 - 15:23

          Check out ME Bank. My father is a broker and explained they offer PPOR and IP at the PPOR rate when the properties are combined. I switched to them in 2019 when I bought my IP and have had the same rate on both properties since then. Initial LVR was just over 70%

    • SlickMick on 19/07/2023 - 09:58
      -1

      please share. I'm refinancing and can't find anyone offering that.

      • JVHifi on 19/07/2023 - 15:23

        Check out ME Bank. My father is a broker and explained they offer PPOR and IP at the PPOR rate when the properties are combined. I switched to them in 2019 when I bought my IP and have had the same rate on both properties since then. Initial LVR was just over 70%

          • JVHifi on 21/07/2023 - 17:52
            +1

            @SlickMick: Mate, what can I say, I didn’t go and check the website but just stated the rate I’m on as that’s what you asked. Yes, I believe the term may be cross-collaterised but it works for me. Regarding fees and rates, it’s all negotiable if you call up and ask. I call up once a year at least to drop my rate and waive the package fee of $395.

            Anyway, good luck with your refinance as I’m sure it must be hard to fit it in to your ultra busy schedule lol

            • SlickMick on 22/07/2023 - 08:07
              -2

              @JVHifi: Whoops sorry, I didn't notice it was you replying… I thought it was some random leading me down another path.
              Apparently smiley faces aren't accepted as light-hearted digs here.

              So are you saying you are on 5.84% & no fee with ME Bank?
              I'm so sorry, I totally missed that.

              • JVHifi on 22/07/2023 - 14:04

                @SlickMick: All good. Maybe you meant that comment in a different manner but it didn’t come across in the best light. Yep, that’s the rate I’m on now and no fee for now, but I can’t guarantee you’d also get the same deal from them. Still I shared just in case it may help someone else get a similar deal. They seem to still have a $4k cashback deal going too

  • jizmo on 18/07/2023 - 17:35

    9.8% Veridian line of credit. CBA
    $12 PM account keeping fee
    debit paid out, but handy account to have if anything ever went wrong.

    • Aerith-Waifu on 18/07/2023 - 19:05

      Whats a line of credit?

      • Mechz on 18/07/2023 - 19:13
        +1

        Instant money without losing your knee-caps.

    • whorishmouth on 22/07/2023 - 17:34

      I had a CBA VLOC for about 17 years, my interest rate in March 2023 was at 8.33%. Phone call knocked it down to 7.44% and then RBA did 3 more quarter percent so it would of topped out at 8.19%, I say 'would of' because I bailed for a re-finance. Your 9.8% is ridiculous - problem is your negotiating power may be zilch since it's paid off - but I still think you should try to lower it, cant hurt. Do you have the MAV package attached? That usually lowers it a bit (but then you're paying a yearly fee for nothing if you don't draw on it). But as you say, good for when you need quick cash.

  • Stopback on 18/07/2023 - 17:41

    Rent is 550 a week

    • Ghost47 on 18/07/2023 - 18:12
      +45

      Doth thy renting peasant dare enter a thread reserved purely for landlords?! Out with thee!

      /s

      • Munki on 20/07/2023 - 12:15

        The audacity!

    • Aerith-Waifu on 18/07/2023 - 19:14

      Which city?

    • nobro25 on 21/07/2023 - 04:24
      -2

      That's pretty average. There's rent in the city CBD that's $1000+ a week.

  • jm7 on 18/07/2023 - 18:11
    +2

    PPOR $495k @ 1.89%

    • Aerith-Waifu on 18/07/2023 - 19:04
      +2

      How long till the rate jump?

      • jm7 on 18/07/2023 - 20:44
        +2

        September

        • Aerith-Waifu on 19/07/2023 - 15:14

          Ouch

        • BanannaMan on 20/07/2023 - 16:28
          +2

          Yeah im on 1.93% 3 year fixed term. Ends in October 2024

          • WhyAmICommenting on 20/07/2023 - 16:36

            @BanannaMan: You’re “#winning”

            I’m this September. Lucky loan is only 300k and we’ve got some cash

            • BanannaMan on 20/07/2023 - 17:21
              +1

              @WhyAmICommenting: My neighbour bought a house the same time as me and she thought I was an idiot for going fixed term.
              She's now on 7.89% I think she maxed her lending on 3 properties

              • WhyAmICommenting on 20/07/2023 - 18:22
                +1

                @BanannaMan: I only went fixed (2y) because the bank wouldn’t give me a better rate on variable - they basically twisted my arm 😂

                • jm7 on 21/07/2023 - 07:24
                  +2

                  @WhyAmICommenting: I've got 160k in cash (currently earning 5.5% interest with BoQ future saver). Hoping bringing my mortgage down to ~$350k will mean we don't feel the rate rise as much.

                • BanannaMan on 21/07/2023 - 10:20

                  @WhyAmICommenting: Hahaha same actually! My broker kept saying the variable might go down at the time too but I prefer certainty.

                  Still blows my mind locking in a fixed rate in USA for the full life of the mortgage.

              • vchar on 21/07/2023 - 10:48
                +1

                @BanannaMan: I should have fixed mine 5ys instead of 3ys :(

                • WhyAmICommenting on 21/07/2023 - 12:44
                  +1

                  @vchar: No one thought that would be a good idea - well, hardly anyone

                  • vchar on 21/07/2023 - 14:37
                    +2

                    @WhyAmICommenting: I was advised to mix with variable rate for a two-year term, I was glade that I fixed it 100% for 3 years as my gut told me that I was offered the lowest rate in next coming decade but I still feel wrong :(

                    • virhlpool on 23/07/2023 - 21:26

                      @vchar: Does your fixed loan have offset account?

                      • vchar on 26/07/2023 - 19:54

                        @virhlpool: Nah but I can send straight to my mortgage account and can offset up to $30k

                  • ssfps on 21/07/2023 - 16:39
                    +1

                    @WhyAmICommenting: LOL, anybody who realized negative interest rates and QE would result in rampant inflation saw it coming in 2021 and locked in 5 years @ ~2%

          • trapper on 21/07/2023 - 19:39
            +1

            @BanannaMan: Wow, you timed that well!

  • burningrage on 18/07/2023 - 18:27

    6.29% IP IO BoM. The only reason I go with them is the $4k rebate.

    • Aerith-Waifu on 18/07/2023 - 19:13

      But once that came you can move to another bank gives another 4k. Rinse and repeat

      • Peanut money on 18/07/2023 - 20:27

        How many times can you rinse and repeat in a year ?

        • burningrage on 18/07/2023 - 23:28

          Technically unlimited as much as you want if you don't mind the damage to the credit score (not that home loan applications look into it much).

          • od810 on 21/07/2023 - 15:59
            -2

            @burningrage: It doesn't damage your credit score. Homeloan is actually helping your credit score.

      • burningrage on 18/07/2023 - 23:27

        Unfortunately, this time I gave my word to my broker not to do that at least for 2 years. This year I've already got HSBC's $3,288 and now this at $4,000

        I am a man of my word so…..

      • lemon on 20/07/2023 - 12:36
        +1

        Love to hear how others went with loan hopping. Good in theory, but not easy to execute.

        My 4K cashback landed with a recent refinance. Tried refinance to another 4K cashback after two months, two banks have rejected my request because I'm seen as a cashback collector.

        • k15866 on 21/07/2023 - 00:02

          I've been doing annually for last 3-4 years, no problems. My broker says he gets commission at 1 yr and 2yr anniversary . so maybe you could try somewhere in between 2 months and 1 year

        • burningrage on 21/07/2023 - 09:54

          Who is still doing $4k these days? BoM/WBC which had the largest rebate had pared down their offering to $2k I think.

          I might go back to HSBC again after 2 years. Hopefully interest rate would have been lower by then.

          • cbom on 21/07/2023 - 22:01

            @burningrage: I got 4k with ANZ ~1 month ago
            and like ~1% lower

  • jjjaar on 18/07/2023 - 18:32
    +1

    PPOR $215k @ 1.99%

  • Michael1983 on 18/07/2023 - 19:08

    PPOR $145k @ 5.84%

    • Aerith-Waifu on 18/07/2023 - 19:12
      +5

      Not long to go now! Congratulations on such a small loan these days

      • Michael1983 on 19/07/2023 - 09:05
        +4

        Thank you, trying to pay it off in coming 5 years and be free at the age of 45.

  • Gdsamp on 18/07/2023 - 19:28
    +1

    Following

  • Gunther on 18/07/2023 - 19:44
    +11

    PPOR owing $500k @ 2.19%
    IP owing ~$1M @ 2.49%

    Still riding the fixed rate dream for another 18months.

    • Trying2SaveABuck on 18/07/2023 - 21:25
      +2

      PPOR owing $500k @ 2.19%
      IP owing ~$1M @ 2.49%
      Still riding the fixed rate dream for another 18months

      you sir are winning in life

    • sashatheman on 22/07/2023 - 21:53

      IP at $1m debt still sounds expensive. Hope its multiple IPs or some creative rental income coming in.

      • Gunther on 24/07/2023 - 11:01

        Yeah multiple IPs with repayments well covered even if it was a 6% rate.

  • AustriaBargain on 18/07/2023 - 19:54
    +1

    Can't be that much of an ouch if you won't sell it. Must be a good kind of ouch.

    • morse on 19/07/2023 - 05:31

      That’s what I was thinking, if it’s too much ouch, sell IP, pay off PPOR, look to other investments with whatever is left. Hopefully IP has increased in value since it was purchased. Presumably there’s also in income stream from IP.

  • KaTst3R on 18/07/2023 - 20:14
    +17

    Just looking at everyone's balances which are so small and realised none of those who responded with a balance is in Sydney.

    • Aerith-Waifu on 18/07/2023 - 23:15

      500k on PPOR is small???

      • KaTst3R on 19/07/2023 - 09:21
        +7

        Sydney's median price is almost double of Perth. Anyone in Sydney with a piece of structure that is attached to the ground will have a PPOR balance multiples of 500k.

        • dtc on 19/07/2023 - 10:43

          Not everyone is a FHB buying in the last 5 years. in fact, most people are not FHBs that have bought in the last 5 years

          • Michael1983 on 19/07/2023 - 12:17

            @dtc: Bought a townhouse in Seven Hills Brisbane back in late 2019.. 430k, now similar ones are in high 600s…

      • MakkhiChoos on 20/07/2023 - 23:11
        -1

        Laughably unless you are in your 50s

    • Bob Svargis on 19/07/2023 - 10:05
      +21

      I'm too scared to respond, being in Sydney. I suspect most would-be Sydney responders are too busy to respond as they are working their second job to pay their mortgages.

      • KaTst3R on 19/07/2023 - 10:07
        +3

        I feel ya, all Sydneysiders are in the same boat.

    • pogichinoy on 24/07/2023 - 19:41

      Sydneysider here, below $100k owing on PPOR.

      It's not a house but its a semi lux apartment in the CBD.

      • Gen Y
  • Peanut money on 18/07/2023 - 20:23
    +4

    IP - 1.79% - bank doesn’t know its an IP

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