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Justin K.
Justin K.
Lindfield West, NSW

What's the maximum variable interest rate that I should be paying on my home loan? Not fussy about the lender - I just want to know the range of rates that are considered acceptable if I refinance.

8 years ago


That's an unusual question. Generally I'm asked "What's the lowest rate?".
But it does depend on the features you want in your loan - but I should think your variable rate should be under 4.0%.
At present there is a great loan at 3.86% (CR 4.02%) with interest-only payments up to 7 years, and free unlimited redraw, if you wanted.
Then you can add a 100% Offset Account, for only $10 a month.
But, kid you wanted a fixed rate, there is a bank loan at 3.59% for 3 years (CR 4.20%). So many options for you.
I'm just at North Ryde if you'd like to discuss them all. Mob: 0411 563 706.

Hi Justin

That is a very interesting question. May I ask if there is purpose you are hoping to achieve by refinancing your current loan other than the obvious search for a lower rate?

The reason I ask is that the rate offered will depend on a few things such as who you are, what you want to do and how much you want to borrow.

Looking forward to your response and to continuing this conversation!

Dien Le
Online Home Loans

Many borrowers I see also ask, "can I get a loan?" rather than looking for the best rate. So I always start with the financials : the equity / deposit you have, the servicing / income / expenses and then any policy that need to be address.

POLICY : Add Backs, Bank Valuations, Bridging Loans, Business Capital, Car Allowance, Cash Out, Casual Employment, Child Support, Commission, Construction, Credit Cards, Credit Issues, Credit Scoring, Cross Collateralisation, Deposit Bonds, Debt Consolidation, Debtor Finance, Dividends, Employment History, Family Guarantee, First Home Buyers, Genuine Savings, Guarantor, High LVR, Interest Only, Investors, Maternity Leave, Merchant, Non-Residents, Off the Plan, Overtime, Owner Builder, PAYG, Pension, Probation, Reverse Mortgage, Rural Properties, Self Employed, Serviced Apartments, SMSF, Superannuation Income, Trusts, Vacant Land.

Justin. Good afternoon. I assume that by "maximum you should be paying" means the cheapest rate that generates you the best savings.
I can offer a current variable rate of 3.54% (3.55%. Comparison) under certain conditions which would be.

Property Usage = Owner Occupied
Loan to Value Ratio = < 80%
Location = Sydney Metro Area only
Employment = PAYG only (not self employed)

If this sounds like your situation then you could qualify. If not, call me anyway and I will provide best option for your situation.

KEN Olds
1300 ASK KEN

Hi Justin,

Depending on loan amounts, LVR's and lenders. If you're not fussed about lenders - there are banks with rates as low as 3.54% (comparison rate of 3.55%) and investment rates as low as 3.86%.

If you would like to review your existing loan, don't hesitate to reach out.

Nathan Calabro
Shore Financial
0407 811 296

In the current market conditions you should be aiming for rates at least in the low 4's or below 4 and as low as mid 3's if you just want a simple low with a low lend (LVR). There are multiple factors that determine your interest rate as well as the loan conditions.
Your goal will determine which loan is best for your situation. For instance, if you wish to pay off the loan in as little as 1/3rd of the term then a low rate home loan will not do this. Make sure you get the right advice about the best strategy and structure to pay off your loan in the shortest time.
Currently we are offering some very sharp rates in our fixed rate and combo loans which also have a 100% off set account attached (YES - that's right, a fixed loan with an offset account).

The right mortgage coach could be one of your best investments!

John J Maxwell
Senior Mortgage Consultant
Cocalex Holistic Mortgage & Finance Consulting
0434 544 225

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