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

    • Makaveli99 on 26/07/2023 - 19:56

      That is peanut money, how much left on fixed?

  • Drakesy on 18/07/2023 - 21:21
    +27

    Imagine if it was America where you could lock in a 2% interest rate for the life of your loan.

    But then you wouldn't have healthcare
    And you'll get shot
    And Deal with people from Florida and Texas

    • cheekymonkey on 19/07/2023 - 09:25
      +13

      and have to tip on everything. don't forget the tipping.

      • StephBlanks on 20/07/2023 - 11:54

        youre so cheeky.. not everything

    • LVlahov on 20/07/2023 - 17:31
      +2

      I'd be more concerned with people from Chicago and Detroit…

    • MakkhiChoos on 20/07/2023 - 23:13
      +4

      You can fix rates for 30 years in Denmark too. It was barely 2% in 2022.

      Then you get taxed moderately higher.
      But you get free education all the way through.
      And also free healthcare including Dental.
      And deal with Swedish neighbours.

      • Drakesy on 22/07/2023 - 23:02

        Sounds shit
        /s

    • ozmian on 22/07/2023 - 21:16

      They got higher property taxes tho. Mate I work with in Texas gambled on a big one there to Reno and just made it through construction loans etc to flip it and the taxes for the new owners recons will be $76k a year. Sold it for a few million.

    • virhlpool on 23/07/2023 - 22:12

      And you'll get shot

      Honestly, I would be happy with a 0.0001% chance of getting shot with 2% interest rate for life and a $500k (USD) price-point for a big (and relatively more luxurious) house in a decent area in a semi-large American city with plenty of employment opportunities vs a $2m house in Sydney with half the size of the former and nowhere comparable specs. Housing price in our cities is a joke. Look at the median or average household income to average price ratio.

  • onetwothreefour on 18/07/2023 - 21:26
    +1

    PPOR offset = outstanding balance. Currently 2.2% but going up soon and can't remember to what rate as I'm not paying any interest anyway.

    • JimB on 28/07/2023 - 10:45

      Why wouldn't you invest the offset in a Term Deposit offering 5% returns?

      Even after tax, there's risk free profit to be made.

      • onetwothreefour on 28/07/2023 - 11:41

        My rate has already changed to 5.9% so not worth it now, I didn't have much time between when the interest rates on term deposits went up to when my 2.22% rate was coming to an end so it wasn't worth the hassle to me.

  • Gnilgorf on 18/07/2023 - 21:48
    +2

    "IP" masking as a PPOR, around $345k owing.
    Partially fixed 1.94 until Aug.
    Rest at 5.94.

    • Aerith-Waifu on 18/07/2023 - 23:16

      How does that even work? You simply tell the bank it's where you going to live?

      • burningrage on 18/07/2023 - 23:31
        +3

        PPOR switching to IP when the loan was originally PPOR is how you do it. The drawback is you can't change banks because they then asked you about usage purpose and you can't produce rental statement to support your serviceability.

        • virhlpool on 23/07/2023 - 22:16

          But do people still treat it as an IP for tax purposes (even though it's on 'PPOR' loan)? I guess yes, because you will need to show rental income in order to claim IP benefits for tax purposes.

      • Gnilgorf on 19/07/2023 - 10:20
        +1

        Basically what burningrage described.

        Was a PPOR, Fixed as a PPOR, but then happened to move in with my partner but started renting it out.
        I even told the bank's agent I was intending to do this and they didn't care ¯\_(ツ)_/¯

        • burningrage on 19/07/2023 - 10:29
          +2

          Don't tell em nothin.

      • sashatheman on 22/07/2023 - 21:57

        When you apply for loan from the bank you tell them if it will be a PPOR or IP.
        I remember applying for a house that we wanted to live in. It was rented at the time. The broken suggested to say to the bank it will be an IP to increase the borrowing capacity as IP will have rental income on paper. Its wasnt a complete lie, because we did rent it out for about 8 months after we settled and then moved into it.

  • ms_caz on 18/07/2023 - 23:09
    +1

    PPOR paid off

    Investment - $310,000 still fixed for now at 4.5%

    • Aerith-Waifu on 18/07/2023 - 23:16
      +1

      Well done! Even more well done if you did this before you turned 40

      • JIMB0 on 18/07/2023 - 23:42
        +2

        It is possible. Takes many years of hard work and discipline. Then you're free to live it up. Choose when and where you work. Spend money on the finer things in life.

    • MakkhiChoos on 20/07/2023 - 23:14

      Which city? How old are you!

  • ForkSnorter on 19/07/2023 - 07:24
    +12

    I owe nothing. But I also have no investments, no savings, and a career that’s going nowhere, so I guess it evens out. Still, owing nothing and not having to pay rent is a really nice feeling.

  • Lunarboogie on 19/07/2023 - 07:53

    PPOR - goneskis

    IP - 5.69 interest only paid in advance (Westpac)

  • sydneyCBD on 19/07/2023 - 07:58
    +2

    0 at 0% 😬

  • dtc on 19/07/2023 - 08:28
    -1

    I have PPOR with approx $5000 owing, which is fully offset. Essentially its a line of credit that I leave open 'just in case' and pay no attention to. But I logged on for this question and apparently my interest rate is 9.130%!

    Searching through the CBA website, this looks like its the "Standard Variable Rate without Wealth Package"

    So suck on that all you 1.69% fixed rate boffins!

    • CodeXD on 19/07/2023 - 10:29

      I believe you need to have wealth package to link an offset account to your mortgage.

      Which means that isn't your rate since you do have one?

      • dtc on 19/07/2023 - 10:46

        My mortgage started about 15 years ago so probably the rules have changed since then but I'm grandfathered? Havent looked into it since I dont pay any fees nor any interest, so its just sitting there.

        its definitely my rate, its stated on the account

  • No and then on 19/07/2023 - 09:11

    7.3% on LRBA!! It went up to around 8.5% few months ago. Went down to low 6's after a quick call and then RBA pushed it back up

  • Odin on 19/07/2023 - 09:56
    +2

    2500k owing on ppor @ 2.05% will boost to 6 in a little over a year.

    • Aerith-Waifu on 19/07/2023 - 15:11
      +1

      Dude you have a 2.5m mortgage?

      • Odin on 19/07/2023 - 15:58
        +2

        Yeah. Wife makes good money.

        • MakkhiChoos on 20/07/2023 - 23:14
          +18

          Nice! Is she single?

        • Peanut money on 21/07/2023 - 04:53

          How much is good money?

        • burningrage on 21/07/2023 - 10:02

          I salute you man!

      • KaTst3R on 19/07/2023 - 16:17
        +8

        Finally someone from Sydney who responded with a balance that is reflective of the house prices there. Mine is in a similar ballpark.

        Odin should have said 2500large.

  • SlickMick on 19/07/2023 - 10:13

    Thanks for the reminder, I have to ring lender and ask for their best offer else I'm refinancing.
    Currently:
    PPOR 6.2% but fully offset (re those saying that's dangerous - where does Homestar keep funds - is it a bank with gov guarantee?)
    IP 7.12%, 7.31% with offset

    Best deal I could find for IP is 5.89% (unloan), 6.09% with offset (Qudos and Ubank).

    For those with variable rates better than those, I'd love to know who you're with.

    • onetwothreefour on 19/07/2023 - 11:59

      PPOR is fully offset and at 5.94% with tictoc

      • Holidaymaker on 21/07/2023 - 15:45

        PPOR 5.39% 100% offset with bendigo.

        • onetwothreefour on 21/07/2023 - 16:49

          you must be on a special rate as they're not advertising that on their website.

  • Spending2Much on 19/07/2023 - 11:02

    NAB variable 7.23%

    • JimB on 28/07/2023 - 10:46

      Definitely ask the bank to drop your rate and/or refinance.

    • Odin on 19/07/2023 - 12:05

      299 payments is 25 years dude

  • idonotknowwhy on 19/07/2023 - 13:14

    Why are so many people on more than 6%? Is it like some 95% leverage situation or just not shopping around?

    Asking because I don't want the same thing to happen to me later.

  • andrek on 19/07/2023 - 14:01

    StGeorge
    PPOR $415k (with ~$130k in offset), 5.74%
    IP $1m, interest only 6.24%

    • Aerith-Waifu on 19/07/2023 - 15:12
      +1

      5.74% is the best rate I have seen so far. I am paying too much

      • andrek on 20/07/2023 - 09:26

        To be fair, the better half recently started at StGeorge and one of the employee benefits is home loan discount. However, the benefit is just an extra 0.05% so I already had a decent rate even before that.

    • praga on 20/07/2023 - 09:38

      I am with St George and on 5.74% LVR 70% for PPOR

    • Drakesy on 24/07/2023 - 13:05

      $62,000 going straight from the renter into the bank.

      Fark that.

  • Aerith-Waifu on 19/07/2023 - 16:45
    +21

    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%
    And 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.

    Thanks for those who contributed to this forum.

    • barge-in hunter on 20/07/2023 - 11:12

      Yup - plenty of inspiration here

    • donman92 on 20/07/2023 - 12:55
      +1

      Over a G reserved for Ozb deals amirite

    • mrvaluepack on 20/07/2023 - 22:11

      What bank is this?

    • Duckie2hh on 21/07/2023 - 09:54

      Are those rates based on P&I repayments?

    • burningrage on 21/07/2023 - 10:04

      Sorry didn't realize your IP is on upper 6s, yes, that would have been too high. 6.29% for me BoM IP IO. HSBC would give 6.19% IP IO and I am leaving them lol.

      • Makaveli99 on 26/07/2023 - 20:03

        Why, just for cashback??

  • newbo on 20/07/2023 - 09:10

    Westpac, PPOR
    loan balance: $291.4k
    property value $550k
    6.79% but going up another tick.
    Payments at new tick will be $1908 per month.

    • newbo on 21/07/2023 - 11:51

      Talked to bank, they offered to fix it at 6.04% for 3 years or 6.29% for 1 year for a fee of $300-400.
      They offered the potential for an internal refinance, they will contact me today or Monday.
      I am just looking now to see what I can get from other banks.
      Any thoughts?

      • RobotWizard on 21/07/2023 - 16:02
        +1

        What bank? This seems bit high, I personally would not fix it that high but upto you, shop around, should be able to get 5.8ish for PPOR

    • [Deactivated] on 23/07/2023 - 00:51
      +1

      I'm on 5.79% with Westpac. Got offered the discount when I came off my fixed rate in May.

  • iampoor on 20/07/2023 - 09:24
    +3

    Westpac, PPOR, 5.69%

    Only got this rate after I nearly left to ANZ for the $4K incentive. Westpac matched the $4K incentive and lowered the rate.

    • praga on 20/07/2023 - 09:42

      That is a pretty good rate, what is your LVR?

      • iampoor on 20/07/2023 - 09:51
        +1

        Probably around 18%? Amount is fully offset though so the rate doesn't really matter..

    • jaypee06 on 20/07/2023 - 16:08

      How long were with you Westpac?

      • iampoor on 20/07/2023 - 16:53
        +1

        About 3 years I think. Now that I've had a look, I also managed to get them to waive the package fee for a year but that is not something that will carry on.

    • newbo on 21/07/2023 - 12:11

      By, "nearly left to ANZ" means the paperwork was processing? What did it take to convince Westpac?

      • iampoor on 21/07/2023 - 16:11
        +2

        I had submitted all docs to ANZ, opened the offset account with ANZ and was pretty much at the last stage - informing Westpac I'm leaving.

        The retentions team then gets in touch and tries to get you to stay…which in my mind is a serious waste of time. Why not just do the best by your customers so this song and dance doesn't happen!?

        • newbo on 21/07/2023 - 16:34

          Cheers for that, I'll see if I can convince them earlier and let you know how I go.

  • jellykingdom on 20/07/2023 - 09:26

    IPs = $900k at 6.84% (jeez I didn't realise it had gotten that high!!!!). The rent doesn't quite cover it unfortunately
    PPOR = $500k at 1.89% until December

    • Aerith-Waifu on 20/07/2023 - 15:33

      Time to ring the bank

    • burningrage on 21/07/2023 - 10:07
      -1

      My rent income never covered the loan ever… Resisted raising rents out of sympathy of the tenant whose husband recently passed away but with Daniel Andrew's persistent assault (My land tax would nearly triple, EV tax, and threat of rent control), I said to my agent I had no choice but to make a massive adjustment and if the agent is to be asked about it, he can point out to the reasons above.

      Anyway, sorry offtopic

      • mlburnian on 22/07/2023 - 11:42
        -1

        Dan has ruined VIC. No sane and informed property investor will touch VIC. Expect Melb house prices to be stagnant for few years , they already have gone nowhere since 2017 after inflation.

  • Powershopz on 20/07/2023 - 09:27

    ING - PPOR $394K @ 5.84%. 22 years left on loan.

    A few months ago we were on 6.09%. Called them up and they dropped it by 0.75% however that drop was then mostly absorbed in the next two months with increases.

  • centennial on 20/07/2023 - 10:31
    +2

    PPOR , 2.10 Mil at 1.85% till Nov,2024. there after god bless me :(

    • Aerith-Waifu on 20/07/2023 - 15:34
      +3

      It's time to work your ass off and pay as much as you can till then

  • pogichinoy on 20/07/2023 - 10:43
    +1

    PPOR = $81.5k at 4.87%
    IP1 = $418k at 6.69%

    Gen Y in Sydney

  • Munki on 20/07/2023 - 12:18

    PPOR: $454k owing @ 2.28% fixed for another year. Not looking forward to the jump once the fixed term is over.

  • richmond12 on 20/07/2023 - 12:21

    When people are calling their lender, do you have to lock in rate for x time?

    • jprockbelly on 20/07/2023 - 22:46

      You don't have to do anything. Your bank might offer you a fixed rate (e.g. locked in) mortgage, but you don't have to accept.

      In the past I've just rung up and said I'm going to refinance elsewhere unless they can lower my rate. Sometimes they do, sometime they don't.

      Be persistent, and be serious (if you ask for a 2% loan they'll just laugh at you). Do a Google first and have some idea of what rates are available. And don't be afraid to just lie "I got offered X% by my local mortgage broker. Can you match that?"

  • ashftc on 20/07/2023 - 13:04
    +3

    $260k PPOR. No IP. Want to payoff PPOR, live and gloat about being debt free soul in Australia.

  • AMLagonda on 20/07/2023 - 14:10
    +2

    PPOR $0 Big relief there I tell ya…. (its actually $400 @ 6.02% to keep the redraw lol)

    IP 260k @ 6.37 ANZ with offset (not saying how much but interest is $655 per month)

    Im a poor man that has worked very hard to get where I am…

    • MakkhiChoos on 21/07/2023 - 01:15

      What’s the benefit of redraw vs high interest savings account?

      • WhyAmICommenting on 26/07/2023 - 10:15

        If they move the money out they’ll pay more on the loan and tax on the high interest savings

  • momo1988 on 20/07/2023 - 14:41
    +3

    PPOR 1.6m @ 5.74% StGeorge. Two year 1.86% fixed rate expired back in March. I still remember the call back in 2021 with my broker where he offered 2 or 3 years fixed rate and I was leaning towards 3 years but he suggested 2 years as "rates aren't going up anytime soon". That extra year of fixed would've saved me 50k in interest alone!

    • Aerith-Waifu on 20/07/2023 - 15:36
      +2

      Well lots of people fall for the former governor……

      • pogichinoy on 20/07/2023 - 16:58
        +6

        Let me repost for the upteenth time.

        The RBA quote is:

        "The Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range. For this to occur, wages growth will have to be materially higher than it is currently. This will require significant gains in employment and a return to a tight labour market. The Board does not expect these conditions to be met until 2024 at the earliest."

        People tend to forget the entire quote and only focus on "not raising rates till 2024". Obviously inflation figures aren't in the targeted 2-3% range, which is why the RBA acted earlier than 2024 and increased rates.

        The media are also to blame for poorly reporting the actual quote.

        • Blew on 20/07/2023 - 18:43
          +3

          Lowe made plenty of other statements to that affect at around that time too. He and the RBA intentionally did that to encourage borrowing and thus increase economic activity. He apologised for rather gigantic whoopsie, but only after thousands of people committed themselves to large financial debts as FOMO took hold in our capital city property markets.

          The fact that the RBA completely missed the somewhat predictable inflationary impacts of the insane monetary and fiscal stimulus which they and the federal government sprayed around with great abandon, along with the inflationary impacts of supply shortages and border closures, demonstrates an astounding level of ineptitude.

          If the CEO or any board of directors of a large corporation missed even a small percentage of the financial impacts of what the RBA did they'd be shown the door immediately.

          • postform on 20/07/2023 - 23:46
            +2

            @Blew: no offense but people really should think for themselves for a change. And also take responsibility for their own actions.

            its just so funny how greed blinds and everyones willing to fall off a cliff like lemings cause every tom dick and harry doing the same thing and hoping enough suckers hop in. creating a false hope that the government should step in for their own speculations mistakes.

          • pogichinoy on 21/07/2023 - 15:14

            @Blew: He only apologised because for PR. But almost every media outlet misinterpreted the quote.

            The RBA is indepedent from the govt. They do not tell the govt or work with the govt to decide to spend on stimulus. They also do not decide on govt policies such as border closures. The govt reports on inflation, and the RBA reacts to these reports.

            Your analogy is inaccurate. In this example, they didn't miss a small percentage, or a decimal.

            Our country/economy/the world has entered new territory. Australia nor the world has experienced a pandemic like this within the last 100 years.

  • Blugok on 20/07/2023 - 14:43
    +1

    PPOR 0
    IP 0

    Credit card debt 10k

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