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

    • Aerith-Waifu on 20/07/2023 - 15:35

      Wow you paid both off? How do you do it? Well done šŸ‘

      • Tnetennba on 20/07/2023 - 15:55
        +1

        The 10k credit card debt probably indicates they don't have a PPOR/IP paid off, since surely it would make more sense to leverage that equity to pay the absurd interest rates that credit cards bring.

      • Blugok on 20/07/2023 - 18:13
        +5

        Been living on indomie

        Mortgage amount total was only 1m thoā€™
        Took ~13 years

  • Bluto Mindpretzel on 20/07/2023 - 16:27
    +6

    PPOR 0

    Plenty of savings as well, due to alive of OzBargain philosophy. No IP because I don't treat basic human needs as asset classes.

    • Blew on 20/07/2023 - 18:45
      +1

      What about those poor people who either can't afford to buy, or don't want to commit to buying, a property and need a place to rent? ;)

    • JimB on 28/07/2023 - 11:15
      -1

      You own a property and still a decent person by being a good landlord.

      Some people will never be able to buy a place even if prices were 75% lower than the current price.

  • OzzyOzbourne on 20/07/2023 - 17:03

    Fixed at 2% for another year

  • lookingforTV on 20/07/2023 - 17:03

    Owing $217k at 6.72% VR on PPOR which will hike up again from 9th Aug. Unfortunately, unable to refinance since my income in the past couple of years have been horrible from operating a small business and resigning from my job to save the business.

  • turk182 on 20/07/2023 - 17:06

    IP 600K @2.3%
    IP 260K @2.3
    Both fixed till jan 24
    Single income

  • bargainervic on 20/07/2023 - 18:03
    +1

    PPOR Balance 650k (Valuation _ $1.2m) Locked in 2.2% till Nov-24

    • Bluto Mindpretzel on 20/07/2023 - 22:40
      +1

      Valuation isn't so relevant for PPOR if when you sell and buy elsewhere, everything else went up just as much lol.

  • TEER3X on 20/07/2023 - 18:47

    Don't have any properties but have half a mil under the mattress. Should I put in the bank and earn interest?

  • rubenastley on 20/07/2023 - 18:57

    PPOR 450K @ 5.79% with Ubank

  • samba on 20/07/2023 - 19:01
    +1

    PPOR $680K @ 1.99%, expiring end of the year.

    prayformojo

  • Cookiescream on 20/07/2023 - 20:24
    +1

    PPOR $238k at 1.89% until dec 2024

  • ribze1 on 20/07/2023 - 20:40
    -1

    IP $471k 5.99% (just became an IP 6 weeks ago, on PPOR rate though). CBA

  • Jaspa7 on 20/07/2023 - 21:18

    250k PPOR
    Half variable @ 6.26% with ING (pretty much fully offset, so not worth fighting for a few extra cents over the remaining month or two)
    Half fixed @ 1.89% until Nov 2024

  • Typical16-bitEnjoyer on 20/07/2023 - 21:32
    +5

    That's good and all, but how much is everyone spending on replacement toilets for their IP

    • MrMoo on 20/07/2023 - 23:34
      +2

      I'm thinking of taking legal action if you make me replace it.

  • SandyDaMighty on 20/07/2023 - 21:38
    +1

    Noob here thinking about buying a property. What is IP and PPOR?

    • Bluto Mindpretzel on 20/07/2023 - 22:37
      +4

      IP = Investment Property
      PPOR = Primary/Principle Place Of Residence

  • DV0993 on 20/07/2023 - 22:13
    +4

    2 IPs
    Broke a 5 year fixed 1 year early in order to fix in Jan 2021
    Both fixed at 2.99
    Debt is 1.4m (I'm 29)
    Both come off in Jan 2026

    • jedimaster on 20/07/2023 - 23:55
      +2

      Well done

    • DV0993 on 21/07/2023 - 00:33

      My mistake, I meant Jan 2022. It was a 4yr fixed!

    • Doboman on 23/07/2023 - 21:34

      Very Smart , how did you even predict the interest rate will go up ?
      Or was it just that you wanted fixed payments ?

      • DV0993 on 23/07/2023 - 23:09
        +3

        My memory is a little hazy. If I recall correctly, the RBA announced that it was going to cease their bond purchase program (before they formally signaled rate hikes) the Friday before my second IP settled (and my old fixed mortgage for my first IP moved banks/changed rates) - Both properties settled on the Monday.

        One week prior to settlement, I called my broker telling him that I wanted to pay for rate lock - He thought I was mad.

        Monday rolls around, and the 2.99 rate crept up to 3.19.

        How did I 'predict' it? I guess it was trying to think about everything that was going on - It just made sense that if the cost of funds are greater for banks; that they will pass it on to the consumer. Rates were at all time lows, heaps of stimulus was pumped into the economy - I didn't see inflation getting so bad, but it made sense.

        I majored in economics (i'm not an economist) at University and funnily enough I feel like that had nothing to do with my decision! :P

    • trapper on 24/07/2023 - 10:38

      What did it cost to break the fixed early?

      • DV0993 on 24/07/2023 - 19:02
        +1

        The cost can vary on daily/weekly basis. off the top of my head it was circa $7k.

        If I had waited, I would have copped around 6 rate rises prior to re-fixing or going variable

  • Takeonme on 21/07/2023 - 06:00

    PPOR - Paid off
    IP - Owe $1.3m
    Rate - 6.9% (IO)

  • Dealhunter967671 on 21/07/2023 - 08:29

    FHB 2021

    PPOR $650k ($450k remaining after offset) 1.89% til December 2023

    I just wanted to stop rentingā€¦

  • cwangv on 21/07/2023 - 09:30

    PPOR owing $301k paying 5.92% (I&P)

    IP owing $324k paying 6.29%(IO)

  • SgtBatten on 21/07/2023 - 09:41

    $540k at 1.98% til May 2025 and $233k (190k offset) at 5.89% both on my PPOR

    New baby, down to 1 income. Bleeding money and not even switched the bulk over to variable yet ….. Yolo

  • eek on 21/07/2023 - 10:02

    PPOR: $540K at 1.98% fixed until 2024 P&I
    IP: $453K at 6.25% IO

    Sitting around 50% LVR. Maybe time to leverage and buy another IP :D

  • klonky on 21/07/2023 - 11:32

    PPOR: $272k @ 6.12% + $201k fixed @ 1.94% until end of September this year.
    Currently with Commbank but they will not budge on the interest rate. In the process of moving over to Bank of Melbourne to get $4k cashback and variable of 5.89%.

  • kalithreaver on 21/07/2023 - 11:53

    PPOR: House worth around $750k now, loan balance $1 at 6%, keeping the loan open in case i need access to money.
    Wife and I turn 40 this year so now looking towards future and the plan to hopefully retire earlier than 67.

    • JIMB0 on 25/07/2023 - 08:15

      Have you stopped all payments and do they add half a cent of interest each month to the balance?

      • kalithreaver on 25/07/2023 - 08:21

        yeah all my payments were manual so i have stopped paying. each month when the payment is due it just takes it off the top so the loan and balance drop by the repayment amount.

        interest wise when i had $2 in there it was getting around 1c of interest a month.

  • CheapWrangler on 21/07/2023 - 12:26

    Bankwest

    PPOR $393,000 (with ~$56,000 in offset), 5.89%

    hopefully paid off in the next 6 years

  • jdm888 on 21/07/2023 - 12:51

    PPOR $486K - 6.23%
    IP1 $236K - 6.3%
    IP2 $241K - 6.3%
    IP3 $243K - 6.19%
    IP4 $387K - 6.19%

    feelsbad.jpg

    • trapper on 21/07/2023 - 12:56
      +1

      How come your IP's balances are so low when you still have $486k on PPOR?

      • jdm888 on 21/07/2023 - 13:25

        Used PPOR equity for the IPs and they aren't worth that much

    • congo on 22/07/2023 - 20:53
      +1

      5 Propeties, that is good isn't ?
      Why feel bad ?
      Worst case, you can sell one.

  • trapper on 21/07/2023 - 12:55

    IP $200k at 2.44% changing to 6.2% in one month.

  • IM-Cheap on 21/07/2023 - 13:01

    IP 440k 6.09% variable, currently refinancing

  • Wayne7497 on 21/07/2023 - 13:38
    +3

    Finished my mortgage last week

    • We Out Here on 21/07/2023 - 14:02

      how old are you?

      • Wayne7497 on 21/07/2023 - 15:14
        +4

        54yrs old, paid 185k originally 18yrs ago house currently valued 780k

  • AndresF on 21/07/2023 - 14:06
    -2

    PPOR $270k at 5.74% with ubank, location in bris.
    Bought for $430k in 2016.. now apparently worth like over $750ish. Insane.

    No IP.

    • Aerith-Waifu on 21/07/2023 - 17:59
      +1

      How old are you if you don't mind answering?

      • AndresF on 22/07/2023 - 07:52

        late 30s

  • Konjhus on 21/07/2023 - 14:30

    PROR [Macquarie]
    Fixed for 1 year starting from Feb 2023 5.25%
    Variable 5.74%

    IP [Westpac] owner-occupied rate as didn't inform the bank that it's IP now
    Fixed for 1 year starting from June 2023 5.64%

  • nephilim on 21/07/2023 - 14:39
    -1

    We sold for 200k profit, now building house in a better area for extra 50k (from 50mins from Adelaide CBD to 15mins)

  • od810 on 21/07/2023 - 16:06

    PPOR & IP + Share loan @ 5.74%

    100K PPOR ~50k offset
    630K IP
    330K Share ~120k offset

    • Aerith-Waifu on 21/07/2023 - 17:59

      Whats a share loan?

      • od810 on 21/07/2023 - 18:22

        I draw extra money to invest in share market

  • Shamdog on 21/07/2023 - 16:33
    +2

    Sydney
    PPOR loan $1.535m
    My fixed loan from 2 years ago @ 2.3% is expiring at the end of this month. Definitely one of those facing the "mortgage cliff" when my loan reverts to 5.90%.
    Repayments increase by ~ $3.5k per month :/

    • ssfps on 21/07/2023 - 16:50

      I wonder what % of people in positions like this can actually service the extra interest. Who has an extra $40k a year laying around?

      • pogichinoy on 21/07/2023 - 18:07
        +1

        It's not answering your question but it is data nonetheless. According to this video, 880,000 mortgages are coming off fixed rates in 2023, and next year, 450,000.

        https://www.youtube.com/watch?v=xwSUmHIDdek

        Who? People should have been paying down their mortgages at the historically low rates, or at least, understood that their honeymoon rates are ending and save.

      • Shamdog on 21/07/2023 - 22:17

        I have friends who are now in a tight spot due to coming off fixed. One of them is moving back home with their parents and renting the property out instead of selling their PPOR

    • Aerith-Waifu on 21/07/2023 - 18:00

      You can find that 3.5k pretty easy or need to tight a lot of the things?

      • Shamdog on 21/07/2023 - 22:19
        +1

        My wife and I got lucky. We both secured new jobs last year with decent pay bumps so we can weather the increase. Without the pay bump I feel like our place would have been on the market by now.

    • Pratty on 21/07/2023 - 18:38

      Who are you with to be reverting to 5.90%?

      • Shamdog on 21/07/2023 - 22:20
        +1

        ANZ. Our broker has been great at putting the pressure on ANZ to ensure our rate remains competitive.

        • od810 on 21/07/2023 - 23:43

          You can get between 5.6x to 5.7x with major bank especially with your loan size. My sister just moved to BoM @5.6x and i am with westpac @5.74

          • Shamdog on 22/07/2023 - 13:05

            @od810: Thanks for letting me know! Iā€™ll do some shopping around.

  • jedimaster on 21/07/2023 - 17:39

    360K at 5.67%

    Was on 1.79% fixed for 2 yrs with offset which expired in March. The glory days

  • Blakus on 21/07/2023 - 18:56

    PPOR 100K @ 1.75% (till early next year)
    IP 550K @ 2.09% (till late next year)

    Should have the PPOR paid off by the time the IP loan jump hits.

  • LemonParty on 21/07/2023 - 19:26
    +1

    PPOR with Hume 5.04%. $600k.
    Came off low fixed in Jan and they had a special running with good discount off standard variable.

  • Hawks33 on 21/07/2023 - 22:12

    PPOR 468K @1.99% (till Feb 2025)

  • cnrmlj on 22/07/2023 - 06:52

    PPOR - Variable net of offset - $146,767 - 5.92%
    IP - Variable Account - $94,588 - 6.12%
    IP - Fixed Account - $577,239 - 2.44% (Until April 2024)

    Recently had them reviewed and updated. Will try again in November for a further reduction. Will probably look at other lenders in April 2024 when the IP Fixed Rate expires.

  • tobuyRnot2buy on 22/07/2023 - 07:00

    133k variable at 6.84% but it is paid now
    475k fixed at 1.9% till next year June.
    Dreading the rate increase already.
    Also I donā€™t know what is ppor and ip šŸ˜¢ mean

    • LemonParty on 22/07/2023 - 10:50
      +1

      Principal place of residence
      Investment property

      • tobuyRnot2buy on 22/07/2023 - 11:36

        Thank you. No IP only PPOR for me. šŸ˜Š

  • acersaurus on 22/07/2023 - 07:08

    PPOR 2.94% until March 2024.

    Fixed it for 2 years right after Russia invaded Ukraine, in anticipation of inflationary consequences. Wanted 3 years but it was about 3.5% - in hindsight that wouldve still been better.

  • LXE3 on 22/07/2023 - 08:18

    Iā€™ve owned my PPROP for about 7 years (I bought land for $450 and built a house for another $450, when I was 30). I paid it off by 40 and itā€™s now worth about $2.5m. I basically put every last cent into my mortgage and deferred having kids while I worked my butt off.
    I have some savings and kicking myself that I didnā€™t buy an IP 3 years ago.
    Itā€™s funny how everyone is so keen to pay off their mortgage but when you do, there is pressure to get the next best thing. It makes me feel like Iā€™ve gone backwards for not ā€œupgradingā€. Instead, weā€™ve just tried to enjoy life a bit. The thought of taking on another mortgage and paying a couple of hundred grand in stamp duty to upgrade does my head in. It makes me feel trapped. At this point, if my income ends, it wonā€™t be fun but it wonā€™t ruin me.

    • tobuyRnot2buy on 22/07/2023 - 11:38

      how long did it to take for you to pay off? 7 years?

      • LXE3 on 23/07/2023 - 07:10
        +1

        About 10. I had a good deposit from making about $350k on my first property (which I only had for about 18 months - I built a house in a new area).

    • Bluto Mindpretzel on 22/07/2023 - 11:41
      +2

      Well this is the cost of these price rises everyone celebrates. Think about it: Your council rates go up, your maintenance costs go up (tradies are a direct recipient of this bubble as owners throw money around as everything "increases value" so they ask for more money), the bigger the house the more of this upkeep there is, stamp duty or land taxes becomes even more insane if you ever plan to move etc. But somehow it's all something people celebrate because they are "paper wealthier".

      I personally don't even care what my house is worth right now, and I would celebrate it's value halving overnight personally (I own it outright as well). It would be good for society as a whole. The bubble is basically all consuming: extend this concept to commercial property and every good and service we pay for has increased costs because of this hyper-inflating cost of shelter. Somehow Aussies want to celebrate property now being worth $x more than before, but it's all an illusion as what has happened is the spending power of our currency has fallen, that's really all that happened. Case in point: being a "millionaire" means really nothing now when even the simplest of hovels in the major cities require that.

      Housing imho; a basic human need; is a consumption item, not an asset. One's home isn't a "nest egg" because it's illiquid due to it being extremely costly to downsize/move. It's just the modern debt driven view from the 40 year debt cycle that has skewed it as such.

      • LXE3 on 23/07/2023 - 07:11

        I couldnā€™t agree more. I donā€™t feel like I can afford to move. Moving would easily cost be $1m.

    • kalithreaver on 24/07/2023 - 09:16

      we have almost paid our house off and my next goal is for an early retirement. so will focus on extra into super, start saving money and putting money into shares and have a little extra on the side to enjoy life.

      • LXE3 on 25/07/2023 - 06:31

        Early retirement would be nice but I now have three kids so there is no way I will be able to afford to retire while theyā€™re in school. I have probably 10 years of work still to do, so hopefully Iā€™ll retire before 60.

  • Snoochem55 on 22/07/2023 - 13:18

    ANZ made an error when I changed repayments on a IP from IO to I&P. Mortgage broker had advised the interest rate will go from 6.09% to 5.84%. What it actually changed to was 5.19%.

    One rate rise since then so currently on 5.44%.

    Its less than my PPOR rate! Also with ANZ.

    • Makaveli99 on 26/07/2023 - 20:24

      I need to get on this mistake lol

  • Akya on 22/07/2023 - 14:02

    PPOR $710k 5.49% with MyLoan and $72k with Ubank 6.14%
    IP $415k 6.14% with Ubank

    Earlier this year we refinanced with Ubank and reset the loan term to 35 years (was 27 years), $4k cash back. The $72k split loan was the increased IP value but kept the LVR at 80 (secured against the IP). It was used towards our deposit on PPOR that we just settled last week :) both Ubank loans have offset whereas MyLoan doesnā€™t have oneā€¦ unfortunately offsets are quite empty after just buying PPOR!
    MyLoan is fixed for 3 years cos that was the only way my broker could get the loan through and had to pay some LMI.

  • ScottyDont on 22/07/2023 - 20:18

    FHB, new baby so basically single income

    PPOR ~$580k at 5.78%, couldn't access fixed loans as needed some LMI to cover it. I called the bank months ago when it got to 6.44% and they dropped it to 5.28%, well worth the 10min call

  • congo on 22/07/2023 - 20:57

    Is the Property market going to burst anytime soon?

    • Danger on 26/07/2023 - 15:57
      +1

      No..Nay..Nope…Nada

  • scbrother on 22/07/2023 - 21:00

    Investment Property - Variable @ 5.49% (seems to be a glitch and I'm lagging two rate rises)
    330k owing

    • Makaveli99 on 26/07/2023 - 20:25

      Which bank, nice

  • ozmian on 22/07/2023 - 21:25

    Offset with 1.89% ended last month they offered 5.34% to refix so took it for 12mo. Repayments went from 307pw to 424pw.

  • DrPotato on 23/07/2023 - 06:55

    PPOR - $360k @ 5.89%, Ubank. One of the few lenders who was offering cashback for new homes with decent rates and offset account for low annual fee.

    Quite happy with them since their app and CS is fantastic.

  • jassd on 23/07/2023 - 10:22

    PROP : 636k @ 5.74
    IP's. : 1.72 m @ 6.2

  • mezje on 23/07/2023 - 11:40

    PPOR $463k @ 6.13% as of latest rate rise

    Wish I fixed but hindsight is 2020! I feel for those coming off fixed terms.

  • mavack on 23/07/2023 - 14:01

    PPOR 5.69%
    IP IO 6.09%
    HSBC
    About 1M total lending, broker worked them pretty hard after my 1.88%/2.xx% rates expired.

    • kl2999 on 23/07/2023 - 20:55

      same as mine but my IP is P&I @ 5.79%.

  • Brick50 on 23/07/2023 - 15:21

    PPOR 5.84% Bank of Melbourne

    Been wanting to refinance for cashback but can't find any decent cashback with the same or lower rates

  • OzzyBoy1 on 23/07/2023 - 17:33

    I tried to get better rates recently with Bank of Melbourne and Bank of Queensland. But I wasn't offered anything better saying it's cheapest. Current rates are above 6%. Seeing people getting better rates here i was wondering if people have more owing amount. I don't owe more than $400k with either of them. Any other tips or tricks? I can't refinance right now as partner is working part time due to some commitments. Have some decent savings in offset so couldn't fix my loan earlier.

    • Brick50 on 23/07/2023 - 22:13

      If you want better rates you need to refinance, I'm sure many people threaten to leave but realistically most probably don't out of convenience so why would they bother.

      I refinanced with BOM probably 3 months ago, My LVR is just under 70% and i'm at 5.84%. Can't remember what it was when I signed but they have passed on every rate rise since. My loan is 480k

  • Viper8 on 24/07/2023 - 13:03
    +1
    1. PPOR 1.98% fixed, with 22 months remaining. Fixed for 4 years back in 2021 (analysts and traders/ futures were adamant that rates were going up so I locked in for the long-haul).
    2. PPOR 6.19% variable, which is 100% offset (better than putting cash in savings). Was 6.69% until I called.
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