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Margin Loans Suncorp's margin loan interest rates

Discussion in 'Finance & Banking' started by Glebe, 14th Apr, 2007.

  1. Glebe

    Glebe Well-Known Member

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    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..
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Are you sure that wasn't for another product ? Those rates sound like residential mortgage secured rates (even then, they sound too cheap).

    Suncorp - Loan Interest Rates

    I'd be surprised if they were correct.
     
  3. Glebe

    Glebe Well-Known Member

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    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..
     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Please forgive my skepticism ... most 12 months fixed paid-in-advance rates are no more than 0.25% or so cheaper than their in-arrears rates. To see discounts of 1% plus is pretty unusual in my experience.

    I'll believe it when I see it :eek:

    Would love to see that PDF
     
  5. Bantam Roosta

    Bantam Roosta Well-Known Member

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    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
     
  6. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Depends on the lender, but generally, yes - they would split the loan with $X fixed interest and $Y variable ... you can't change the fixed part of the loan until the fixed period expires, but you can continue with the variable part as normal.
     
  7. Glebe

    Glebe Well-Known Member

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

    Glebe.
     
  8. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Wow ... that is an incredible rate - Suncorp are being very aggressive there.

    I'm sorry I doubted you !!

    I hope you lock it in ASAP.

    I think I will have to do some hard talking with my margin lender!
     
  9. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Here's the letter Glebe received.

    Is anyone else being offered great pre-paid fixed rates ?
     

    Attached Files:

  10. coopranos

    coopranos Well-Known Member

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

    Glebe Well-Known Member

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    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!
     
  12. handyandy

    handyandy Well-Known Member

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    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
     
  13. coopranos

    coopranos Well-Known Member

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    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!
     
  14. gazza

    gazza Well-Known Member

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    Handyandy

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

    Gazza
     
  15. Glebe

    Glebe Well-Known Member

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    Good stuff. However I take no responsibility for their customer service levels ;)
     
  16. DaveA

    DaveA Well-Known Member

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    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%...
     
  17. Bantam Roosta

    Bantam Roosta Well-Known Member

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    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
     
  18. DaveA

    DaveA Well-Known Member

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    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...
     
  19. SydneyCider

    SydneyCider Member

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    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.
     
  20. Glebe

    Glebe Well-Known Member

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