Current mortgage rates and special offers

[Guest Carol from Vista Financial]

Happy Hump day!

To celebrate the occasion of the upcoming end of the work week I would like to share some great mortgage rates and special offers from the various lenders we deal with.

I will try keep you updated when things change, so check back to the end of the last post for the most up to date offers.

Here are the current standout offers from our panel of lenders:

• First home buyers special 3.79% 3 year fixed principal and interest (owner occupied)
• Investment property 3.99% 2 year fixed principal and interest
• $2,000 refinance cash back offer

Important: these are separate offers not in conjunction with each other and are subject to meeting lender terms and conditions.

If you have any questions just ask.

[Guest Carol from Vista Financial]

It is that time of the week again! I have my sights set on Friday

One of the lenders on our panel have their sights set on frequent flyer points, with others focusing on sharp rates:

Here are some standout offers this week from our panel of lenders:

• 200,000 Velocity frequent flyer points for new loans of $250,000 or more (owner occupied or investment)
• 3.64% variable owner occupied
• 4.19% 3 year fixed investment property interest only

Important: these are separate offers not in conjunction with each other and are subject to meeting lender terms and conditions.

The specials from my previous post are still applicable, if you have something specific you are after, just ask.

[Guest Carol from Vista Financial]

Good morning all! Half way through the week and the sun is out!

This week's offers from our panel of lenders:

- up to $1,000 rebate of conveyancing costs for first home buyers

- 4.09% variable investment principal and interest

Important: these are separate offers not in conjunction with each other and are subject to meeting lender terms and conditions.

Previous specials are still applicable, but take note that some lenders are starting to end their specials on refinance cash back offers.

[Guest Carol from Vista Financial]

Hello to all forum lurkers! Special shout out to you today!

Here are some offers and other special policies from our lender panel that may be of interest:

- 1 year fixed 3.58% owner occupied principal and interest

- Fixed rate loan with 100% offset available - owner occupied or investment (normally fixed rates are not eligible for offset accounts, this lender allows it which is quite rare)

- Maximum Loan to Value ratio of 98% including lenders mortgage insurance for owner occupied purchase (most lenders keep it under 95% these days)

Important: these are separate offers not in conjunction with each other and are subject to meeting lender terms and conditions.

Have a great day all

[Guest Carol from Vista Financial]

Good morning, we're halfway there! Happy Friday Eve Eve.

Here are some offers from our panel of lenders:

- 3.98% 5 year fixed owner occupied principal and interest

- First time buyers - up to 40% off selected Samsung products (from Samsung store) and $500 cashback if you spend $500 or more

- 500,000 Velocity Frequent Flyer Points for home loans $1m and over - that's a return trip for two back to The Motherland (plus taxes - can't escape those!)

All the above offers are still valid.

Important: these are separate offers not in conjunction with each other and are subject to meeting lender terms and conditions.

Thanks all, please note I am jet-setting to Darwin to have Christmas in July with my family this weekend  My next update will not be until I am back on the 25th July.

If you have any questions I will get back to you as soon as I can otherwise @Andrew from Vista Financial may be able to help too. 

Don't miss me too much!

[Guest The Pom Queen]

On 11/07/2018 at 11:27, Carol from Vista Financial said:

Good morning, we're halfway there! Happy Friday Eve Eve.

Here are some offers from our panel of lenders:

- 3.98% 5 year fixed owner occupied principal and interest

- First time buyers - up to 40% off selected Samsung products (from Samsung store) and $500 cashback if you spend $500 or more

- 500,000 Velocity Frequent Flyer Points for home loans $1m and over - that's a return trip for two back to The Motherland (plus taxes - can't escape those!)

All the above offers are still valid.

Important: these are separate offers not in conjunction with each other and are subject to meeting lender terms and conditions.

Thanks all, please note I am jet-setting to Darwin to have Christmas in July with my family this weekend  My next update will not be until I am back on the 25th July.

If you have any questions I will get back to you as soon as I can otherwise @Andrew from Vista Financial may be able to help too. 

Don't miss me too much!

Have a wonderful Christmas in July Carol.

[Guest Carol from Vista Financial]

Hello hello I am back!

Thanks @The Pom Queen Darwin was nice and toasty and Kakadu was lovely (except for all the mozzies!!). Back in little old Adelaide now, home sweet home. We had a noisy Christmas in July with my nephews and nieces so some quiet down time is on the cards for this weekend!

Here are some updates while I have been away:

- 3.99% 3 year fixed investment interest only

- 3.99% variable investment principal and interest (introductory rate for first 2 years)

- 3.59% variable owner occupied (introductory rate for first 2 years)

Important: these are separate offers not in conjunction with each other and are subject to meeting lender terms and conditions.

Keep in mind these last two offers are intro rates only. I don't normally like them for a reason but for some they may be attractive.

In a nutshell they are honeymoon rates and the revert rate is normally higher (by a fair bit) and overall they may not be cheaper over the full life of the loan. Some people only consider them if they like refinancing often or are easing into home loan repayments and want a bit of breathing space to begin with.... but always review it before you sign the contract and think ahead - two years is not long in the life of a mortgage. Read the fine print for any exit fees or clauses.

MoneySmart is a great resource run by ASIC and one of my go-to websites, read more about different rate types here. You can also check out our handy honeymoon rate calculator to see the true cost and savings associated with honeymoon rate here. Research before you sign anything.

On another note, some lenders have started to increase rates, review yours today while they are still low - if you can secure a set discount off the normal variable rate your discount usually applies for the life of the loan, so now is a good time to ask.... they will not offer!

Have a great day 

[Guest Carol from Vista Financial]

Good morning world.

Thank goodness for emails, forums and typing. I have had laryngitis and unable to talk since Friday night! Please yell and shout so I can live vicariously through you.

So, update:

- $1,250 bonus for new home loans from one lender - Apply between 23 July 2018 and 2 December 2018, be approved and draw down by 1 March 2019.

Important: this is a separate offer not in conjunction with any others stated previously and are subject to meeting lender terms and conditions.

That is about it. Things have begun to slow down in the specials department at the moment, all of the above offers aforementioned remain current. I expect to see another surge come spring as marketing teams have more fun with flowers  Banks are also recovering after EOFY.

Until next week.... 

[Guest Carol from Vista Financial]

Good morning! 

Short and sweet today.

- 3.95% 2 year fixed principal and interest investment (slightly lower than another offer mentioned above)

Important: this is a separate offer not in conjunction with any others stated previously and are subject to meeting lender terms and conditions.

All the above offers remain current for now. If anything exciting pops up I will let you know.

Countdown is on for the weekend!

[Guest Carol from Vista Financial]

Happy hump day... is anyone else finding this week dragging on!?

Here is the round up today - all above offers remain current for now:

- 3.97% investment principal and interest (construction available)

- Owner occupied home loan linked to the RBA cash rate.

How does this last one work? With this product the interest rate is the sum of the cash rate at the time plus a fixed margin set by the lender. Thus if the cash rate set by the RBA moves so does your rate, but the set margin of the bank remains the same. Quite a unique product. (NB: only available for owner occupied variable under 80%).

Important: these are separate offers not in conjunction with each other and are subject to meeting lender terms and conditions.

Have a great day all

[Guest Carol from Vista Financial]

Good afternoon everyone! Sun is shining today in Adelaide who'd have thought!?

All above offers are current for now.

There are whispers of rate rises (clearly independent of any RBA cash rate moves) but no one can ever be sure if this will actually happen or not. Crystal ball question. So if you are considering fixing you loan, base the decision around whether you want the certainty of your repayments or not, and seek professional advice. This is only one aspect and there are other factors you need to consider before making this decision to make sure you are not shooting yourself in the foot now, or in the future. Make your decisions around your own circumstances and the things you can control. Otherwise you are setting yourself up for disappointment.

If you have done you due diligence and made your decision, then ask your current bank for some options. Here are some offers out there - see if they will match them. If they don't come to the party, maybe it is time to see if moving would benefit you.

- First home buyers only 2 year fixed 3.69% principal and interest

- 4 year fixed owner occupied 3.92% principal and interest

Important: as always these are separate offers not in conjunction with each other and are subject to meeting lender terms and conditions.

Ask away if you have any questions

[Guest Carol from Vista Financial]

Good morning internet.

Quiet on the front here in terms of rates and mortgage offers but the biggest thing that may actually determine who you prefer as a lender may be their credit criteria.

Rate isn't everything!

Lending criteria can be a critical factor in your decision, and it has tightened significantly across the board over the last couple of years. Just yesterday I came across an reminder of exactly how much has changed. Same applicant, same income, same circumstances, fast forward two years to today and using the exactly same details as their original application two years ago , they would be declined the loan they have today! This is for owner occupied property, so put aside the extra complexities associated with investment properties. This is purely and simply a demonstration of the banks pulling the purse strings tighter. If this means extra protection for those seeking credit, fair enough. But that doesn't make the pill easier to swallow.

It's not you, it's me. Sincerely, Banks.

The applicant has not done anything wrong here - it is an environmental and regulatory change. They have a healthy deposit and only one small credit card, and yet the same application put through today would simply not meet the banks lending criteria. This is the case for many people, the majority of which won't even realise until they try to apply for a new loan and receive a rude awakening. Nobody likes rejection, but just know this isn't personal. Now this doesn't automatically mean that the first original approval was 'wrong', it simply means times have changed and we must adjust our expectations. (On the flip side of course obviously in some instances perhaps the approvals were 'wrong' and have put people at risk of hardship, hence the tightening of lending criteria in the first place!)

What now?

So, what is the solution? Seek a lender that caters for your circumstance. But be honest, because the rules are there to protect you, as annoying as they may be. In this particular instance it was a case of choosing a lender that accepts the spouse's income, that would not necessarily be accepted by others. The bank accepts the extra income, affordability increases, and there you have it, a stronger application. No, it may not be the lowest of low rate lenders - because if they accept extra risk in their policies, they may mitigate that risk with a higher rate. But it makes for a stronger likelihood of approval, and you aren't in a position to wait (or ever) tick the boxes of the bees knees lender, this may be your trade off. Rate isn't everything.

The bottom line

At the end of the day, and most importantly,  if it doesn't work, sometimes it just doesn't work. If you can't meet affordability criteria, this is a great big red flag to tell you that maybe today's not the day. Be frustrated and annoyed. Then accept it, dust yourself off and don't lose hope. Re-assess where you are now and where you need to be, and make a plan to get there. Before you know it you will be in better position to apply and frankly this may be the best thing for you anyway.

Thanks for reading, until next time

Carol

[Guest Carol from Vista Financial]

Happy Thursday everyone!

Apologies I didn't get a chance to post yesterday, got caught up in a few calculations from people wanting to vote with their feet and move banks.

Have you thought of sacking your bank?

I am a coffee addict, and if the barista gets it wrong, I sack them. I go somewhere else. I sadly throw my loyalty card in the bin and get mad that they didn't reward me as an existing loyal customer. Then I move on and start fresh somewhere else where they don't burn the milk and value the outrageous $4-something that I fork out for someone else to make my caffeine fix in the mornings.

Why is it we don't think the same way with something that costs us hundreds per month? Why don't we shop around? Because it is too hard, and takes too much effort, and no one likes paperwork. So off it goes into the too hard basket to sit indefinitely next to cleaning-out-the-spare-room. But yet we will invest the time to shop around for clothes, food, shoes, coffee, you name it.

Why is this relevant today? Because unless you choose to truly - thoroughly - investigate your options other than glance at the specials I put up weekly, you won't actually know the potential savings out there. Inaction is still a choice, so invest the time to do the sums yourself, or get someone else to.

Despite Westpac, Suncorp and Adelaide Bank increasing their rates and other banks reducing their rates to try capture those annoyed clients serious about moving, all the above offers I have mentioned still remain the same, and have not actually changed.

Why? Because lenders rely on your inaction. They rely on the fact that despite public uproar, Royal Commissions and disappointment, the majority still do nothing and stay where they are. So why would need to keep winning your business? They don't need to. Because if the vast majority of their existing clients don't actually jump up and leave, why would they have to reward loyalty and incite any true competition?

I can't count the number of times that clients have tried and tried to get a better deal with their existing lender, get nowhere, go through the process of getting a refinance approved, only to finally have their bank call them when they receive a mortgage discharge request and offer them exactly what they have been asking for all along. "Hang on, you're actually going leave? Oh, don't do that, here, have this, we still love you".

To top it off, many clients then end up staying! And I can understand this, they got what they wanted. But so did the bank. They leave it to the absolute last minute, call your bluff, and only then concede a tiny fraction of their overall profit at the eleventh hour to keep you after all. Does this sound like a lender that truly values your loyalty? Don't kid yourself. We are not special to them. But if we continue this cycle, there is no reason for them to change their behaviour.

So do your homework, don't choose inaction. Do some sums here as a starting point. There's more to it than that, but it's a start. It could well be that you won't benefit at all, and that is fine! At least you checked! And at the end of the day if you can't be bothered, take it out of the too-hard-basket and ask me to do it, it's my job.

Until next time.

[Guest Carol from Vista Financial]

One day left until Friday! 

So, despite a few rate movements up and down and the release of the interim report from the Banking Royal commission into misconduct, the rate out there are still very much the same. Lenders are now focusing on their special policy niches, and rebates.

Changes to note:

- the lowest variable rate on owner occupied principal and interest that I previously quoted above for 3.64% and the intro rate for 3.59% are now both no longer available

- the new lowest advertised rate on our panel of lenders for owner occupied principal and interest is now 3.67%. A lower rate may be able to be negotiated for substantial amounts of lending but lenders are now digging their heels in, even when it comes to price matching against another lender.

- one lender has finally introduced a purchase 'round up' feature linked with your home loan - i.e. you buy something like your morning coffee, it is rounded up to the nearest $1 or $5 and the difference is transferred onto your mortgage to help you pay it off quicker and reduce the amount of interest you pay

- if you are looking to refinance and purchase a new property, you may able to access both a refinance rebate of $2,000 AND a new purchase cash back rebate of $1,500 subject to criteria. That's a total of $3,500, just saying.

Important: these are separate offers not in conjunction with any others stated previously and are subject to meeting lender terms and conditions.

If you are thinking of making changes to your home loan, start the process now. Nobody likes paperwork during holiday season - banks included. If you wait until Christmas Eve, it will be slower - they take holidays too.

Thanks for stopping by

[Guest Carol from Vista Financial]

Hi all

A few changes. These offers are now no longer available:

On 04/07/2018 at 10:14, Carol from Vista Financial said:

- 1 year fixed 3.58% owner occupied principal and interest

On 25/07/2018 at 10:09, Carol from Vista Financial said:

- 3.99% 3 year fixed investment interest only

On 22/08/2018 at 12:28, Carol from Vista Financial said:

4 year fixed owner occupied 3.92% principal and interest

New offers:

- 3.65% owner occupied principal and interest

- 3.95% 5 year fixed principal and interest First Home Buyer (owner occupied) special

- 3.95% variable investment principal and interest

- 3.76% 3 Year Fixed owner occupied with offset available

All other remain valid as of today.

Important: These are separate offers not in conjunction with any others stated previously and are subject to meeting lender terms and conditions. Fees and charges may apply.

Thank you

[Guest Carol from Vista Financial]

Good morning world 

Testing out a new format that I hope will be a bit easier to read. Let me know what you think!

[Guest Carol from Vista Financial]

Happy Hump Day!

For those investment property owners or potential buyers out there, here's the scoop on current investment property rates:

[Guest Carol from Vista Financial]

Happy Silly Season everyone! Here is the final rate update for the year, see you in 2019!