Lending may have progressively tightened over the past 2 years, however we’ve noticed the banks quite eager recently to take on high quality new business.
- A number of promotions have just been extended
- There are some very cheap ‘fixed rate’ offers which have just been released; and
- Certain banks are turning around approvals now within 24 hours (other banks were taking over 3 weeks six months ago)
Below is a brief summary of the various promotions/ special offers we’ve recently seen available.
Note all these promotions change on a regular basis (literally weekly), and will not be suitable for all clients. You’re welcome to book in a call or meeting if you’d like to learn more about what is or isn’t relevant for your own specific circumstances. Please call 1300 005 664 and book in a time, or you can just reply directly to this email (dan@longproperty.com.au)
Also I can’t stress enough… what’s even more important than products and interest rates is having a sensible strategy, and setting up the correct loan structures to suit your specific circumstances. You also need a trustworthy adviser who can manage the full end to end process for you reliably, efficiently and professionally.
The worst is if you apply for a loan and then get declined, or you are forced to adversely change the terms of your deal, or you get lost/ stressed through the process because either your adviser doesn’t know what’s going on, or because service slips and they fail to communicate with you adequately.
Here are a selection of recent deals… (published 3/4/2019, may no longer be accurate at time of reading, or based on your specific set of circumstances)
Major banks:
- Bank of Melbourne and Westpac refinance rebates – now $2,000 per security (plus $1,000 cash-back on purchases)
- Westpac also have a very compelling fixed rate offer for ‘new to bank’ investor clients (I cannot publish)
- ANZ refinance rebate – up to $3,500 cash back (for lending > $750,000), can also now go up to loan ratio 90% Interest Only for investors
- CBA refinance rebate – $2,000 cash back, plus unlimited/ free offset accounts, plus Interest Only investment lending as cheap 4.09% fixed
- NAB is also very well priced at the moment with with:
- 3.69% P&I 2 yrs fixed (first home buyer special)
- 3.79% P&I 2 yrs fixed or variable (for owner occupiers)
- 3.99% P&I 2 yrs fixed (for investors)
- These are all full feature loans, rather than basic products with no offset accounts and high establishment costs
Non-majors:
- Macquarie fixed rates are now highly competitive, and they do not charge any ‘rate lock’ fees which is quite unique
- 3.69% P&I 2 yrs or 3 yrs fixed (for owner occupiers) – loan ratio 70% or below
- 3.89% P&I 2 yrs or 3 yrs fixed (for investors) – loan ratio 70% or below
- 4.09% P&I 4 yrs or 5 yrs fixed (for investors) – loan ratio 80% or below, a recent drop of 60 basis points!
- We find that Macquarie applications require a lesser amount of paperwork, and are very fast to be processed
- Citibank is also offering very sharp pricing, particularly for PAYG clients, with > $500k lending:
- 3.55% for home loans (basic product, no offset account)
- 3.89% for investment (again basic product, no offset account)
- Citibank also has a unique policy where for certain clients they can offer investment debt at owner occupied interest rates (you need equity in your home)
Non-banks:
- The non-banks (aka ‘second tier’ lenders like Resimac, Connective Home Loans) are also proving a compelling option particularly for clients who have smaller loan sizes and just after a no-frills product, with low fees/ charges, and a cheap interest rate
- There are also non-bank lenders who allow significantly higher borrowing capacities, albeit for a higher price
Over the past few months we have lodged applications with over 15 different funders. This is because different credit policies and ‘niches’ mean certain banks often suit a particular clients’ situation or requirements/ objectives better than others. Brokers should have experience with a variety of funders, so they can offer more options to their clients, without risking a poor experience. (e.g. if they have never used a particular bank before, they’re unlikely to know all the ins and outs by way of fees, charges, process, timelines, key people, customer service etc.)
Again please reach out if you have any queries as to how any of these offers may relate to your own unique circumstances.
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Long Property blog content provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. Nothing on the Long Property website constitutes legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
Credit Representative Number 493530 authorised under Australian Credit Licence 389328
