Margin Loans Suncorp's margin loan interest rates

Got a letter from Suncorp Metway the other day..

Their interest rates (fixed) for 12 months from June 29 2007 - June 29 2008 are:

$20 000 - $500 000 : 7.8%p.a
$500 000 - $1m : 7.65%p.a
$1m+ : 7.5%p.a

Compared to the standard variable rate (9% I think) they're very attractive. I'm going to lock it in, Eddie.

Would be interested in finding out if any competitors can beat this..

Infochoice hasn't got these above rates reported..

 

Sim, they're correct.. it's for 12 months fixed in advance. So I will capitalise it. I hope there isn't a crash in early July coz my LVR is going to be stretched.

On Monday I'm happy to scan the letter to PDF and upload..

 

Question about fixed rates prepaid.

If you prepay your loan, say $100 for the year, can you then borrow more on the same loan or do you need a separate loan to do this.

Example would be $100k prepaid, you then borrow $20k more on margin. Is this possible and if so is the $20k portion charged at variable?

BR

 

PDF sent to your email address, at 1mb it's larger than Invested's allowed attachment size.

Glebe.

 

Per their website, the rate is 8.5%, is this only for existing customers or new as well?

 

This time last year I was a new customer and secured really good rates, similar to these ones. So I would imagine they apply to new customers also. Give them a call and let us know

If they say no, I'd kick up a big stink!

 

Thanks for that Glebe and Sim.

This will give me amunition to go back to Colonial.

Presently we get 7.6% at Colonial but I want to reduce this further as I just increased the loan again and am about to increase it further.

Cheers

 

just spoke to Suncorp, it is a promotion they are currently running which is pretty sweet. They also have better LVRs than a lot of the others now. Cheers for posting Glebe!

 

Handyandy

Let me know how you go with Colonial. Would love to knock 0.9% pf my margin loan.

Gazza

 

Good stuff. However I take no responsibility for their customer service levels

 

did they say what type of promotion it was, new customers or only old customers? or are they promoting it for people to gain a deduction this year on it.

considering the rate rises pretty fantastic rate. i wish comsec would do something better than there current 8.7%...

 

I know it's not much difference, but you should be getting AT LEAST 8.65%. I'm on that with $20k loan. If you have more you should be able to get them down to 8.45% without too much hassle. Still nothing compared to Suncorp but it's a start. Maybe you could show them Suncorps offer and see if they'll budge.

BR

 

comsec had 8.45 as there loan rate when the last rate rise went up, however now the speculation of the interest rate rise they have already put it up to 8.7 and left the variable at 8.9 until the confirmation of the increase, at what time the variable will go up to 9.15

i want to lock but next FY ill be going up to the next tax bracket, so dont want to use next years deductions for this year, i think i will lock on the 1st july for a 364 day period, and then prepay on 30 june 2008 for the FY 09 and get 2 years worth of interest deductions next year...

 

I rang Suncorp today and was advised they can extend the offer to new clients upon request (have to make some notes as such on the application form).
The offer will be avail to end of April.

I also rang my current lender (BT) and said I have a competitive offer to move my portfolio. They took the details and have passed the request to match Suncorp to their "credit" team.
Should hear back in the next day or two.

Hopefully a few mins on the phone can bring about some nice little savings... it all helps.

 

Make sure you keep us informed, and let us know if BT can beat Suncorp for new clients too