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Real Interest rate

Discussion in 'Finance & Banking' started by jrc77, 4th Jul, 2008.

  1. jrc77

    jrc77 Well-Known Member

    Joined:
    26th May, 2008
    Posts:
    147
    All,

    I am about to do some shopping around for a new home loan and just wanted to get an idea of what "real" interest rate people are paying ... I gather most companies give special discounts that are not mentioned on their websites.

    For example, my current home loan (Wizard Smart Choice) has an advertised rate of 9.39% (9.44% comparison rate) variable, however I am currently paying 8.84%.

    Any input would be appreciated!

    JR
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    "Professional" packages are pretty common these days - up to 0.7% off the standard variable rate.

    Check out Home Loans or Product Snapshots for a comparison.
     
  3. ActiveTrade

    ActiveTrade Well-Known Member

    Joined:
    5th Apr, 2008
    Posts:
    78
    Location:
    Sydney
    All depends on how much you want to borrow and what facilities you require.

    I am very pleased with the Westpac Professional package. It lets me revalue my IP's and tap into extra equity at no cost.
     
  4. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    Which can go up to 0.9% if you have several sizeable loans with them

    Cheers
     
  5. Billv

    Billv Getting there

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    Location:
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  6. boringbanker

    boringbanker Member

    Joined:
    20th Jul, 2008
    Posts:
    6
    Location:
    melbourne
    Hi,

    When you're looking for a home loan, don't just look at the headline rate. Check out what other fees you may have to pay such as app fee, valuation fee, settlement fee, documentation fees.

    Professional packages are a good way of avoiding fees because you only pay one cover all fee and you'll get a reduction on the interest rate. But you will have to pay a yearly fee that range from about $250 and up to $550.

    If you just want a set and forget type of loan, i recommend no frill loan. These loans are usually the lowest interest rate but you will have to pay a small fee for features like offset and redraws. Online home loans are also really cheap but forget about the service.

    the lowest interest rate on may not be the best one for you, so do your research and find the most suitable rather than the cheapest.

    Hope that help.