With the RBA reducing the cash rate to a record low of 0.1% in November, we are now in an environment where it is possible to arrange heavily discounted owner-occupied residential finance under 2% with residential investment funding from around 2.5%.
Aggressive loan discounts for commercial property acquisitions, commensurate with some of the low residential rates, are also on offer. It can be incredible how much annual interest can be saved with a finance review.
For instance, Cutcher & Neale Finance had a recent enquiry regarding loans of around $936,000. We were able to save this client $11,000 in interest per year and fix a portion of their owner-occupied funding at 1.99% for four years.
It would be expected that the annual capital growth on this client’s owner-occupied property would comfortably outstrip the level of interest payable. With our client’s investment property funding arranged at ~ 2.5%, you can see that their rental yield of around 4% has the investment property “washing its own face”.
Did you know Cutcher & Neale Finance are the no lenders mortgage insurance specialists? This can save you thousands of dollars.
We can provide the following loan to value ratios with no lenders mortgage Insurance:
- Lawyers: 90% owner-occupied and investment
- Accountants: 90% owner-occupied & investment
- Sports and entertainment: 90% owner-occupied & investment
- Executive: e.g. CEO, CFO, COO, CIO 90% owner-occupied and investment
- PAYG and self-employed outside of above industry specialisations: 85% owner occupied and investment
- Medical Professionals: 95% owner-occupied 90% investment.
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