October 30, 2017
INVESTMENT INTEREST ONLY 3 YEAR Fixed @ 4.14%
We currently have a lender on our panel that offers investment interest only 3 year fixed @ 4.14%. In addition to a cheap rate, the lender's advantages include:
1. One-off upfront cost of $795 with no ongoing charge
2. The rate is locked at formal approval, not at settlement without having to pay a rate lock fee.
3. If a premium of 0.17% (4.31%) is paid, the fixed rate comes with 100% offset facility
4. The lender is an Authorised Deposit-taking Institutions (ADI) where the government guarantees deposit up to $250,000. Not all home loan providers are ADIs.
It is not this office's approach to "play mysterious". Our office has been specifically instructed not to publicise this lender's name. No lenders have the appetite to be overwhelmed with interest-only loan presently. This is to meet APRA's cap on keeping interest-only loans to 30 percent overall share.
For an owner-occupied loan on P+I repayment, the lender offers 3.65% on its offset variable mortgage. This can be applied to a small loan size of $100,000. The one-off charge is $195 with no ongoing fee i.e. no requirement to join a professional package that usually cost $395/annum.