I have an interest-only loan with Westpac at 4.84% and owe $680,000. If I change to principal and interest what is the best rate I could get without paying an annual fee?

Hi Rikki,

Is your home loan for a property you live in or for an investment?

There are some good special at the moments.

Owner occupied rates are cheaper than investment rates.

Please don't hesitate to call me on 0414 545 643.
regards

Hi Rikki,

An excellent time to be looking into this as many lenders have JUST changed their rates on interstate only & the news is good - they have come down!

It would be really prudent for you to go back to your bank first and ask them what the BEST they can do. That way YOU KNOW wether it is worth looking at other lenders or staying where you are.

If they cannot improve your current position, it is entirely possible to get rates that start with a 3 across both owner occupied and investment.

You will find it difficult for anyone to quote you a rate because we, as brokers, are heavily regulated by ASIC and APRA to ensure we recommend products that are suitable for you & in order for that t happen we NEED to understand your circumstance first. Part of that process is to establish what you want out of a loan and that a low rate and no annual fees is very important.

So, with that being said - I trust we have been able to provide you with one more little step toward answering your question?

Enjoy searching and welcome any further questions you may have.

Enjoy the weekend!

Regards

Craig
Nichoalsfs@icloud.com

Hi Rikki
This is why brokers are important to the industry, no matter what the bankers are saying at the royal commission.
Bank are not your friend!
Your rate will depend on, if it is a owner occupied loan or an investment loan. if it is an owner occupied loan it should have a 3 in the front if it for a principle and interest loan.
If it is an investment loan it should be at least, for a principle and interest loan in the low 4% or mid 4% for an interest only loan.
My accountant once said to me that the best bank may be your next bank.
If your current bank will not negotiate a better rate look for a better deal.

Hi Rikki,
As the other brokers have said it isn’t as simple as just giving you a rate. If this is an owner occupied loan, it should be a priority for you to be reducing the principal and subject to a full assessment you could qualify for a loan in the 3’s.
Basic loan products are generally cheaper at subsidiary and second tier banks and have a small upfront fee with no ongoing charges. These can save you if the offered rate is similar. However with a loan of $680,000 a $299 annual fee is equal to only 0.04% so I wouldn’t say no just because of the fee.
Arrange a meeting with an experienced broker and they will spell out all of these choices for you in terms that are specific to your circumstances.
Best of luck
Scott

Hi Rikki,

As stated already above, it is difficult to quote a rate without knowing more about your overall financial situation.

However, it is quite possible to achieve a rate under 4% for principal and interest repayments, provided everything falls under normal lending criteria.

For a free no obligation comparison, please feel free to get in touch with me through clicking on my profile.

Cheers,
Umit Talarico
Premier Lending
umit@premierlending.com.au
0425 354 821