Aussie Asset Power (Thoughts?)

[gad]

Anybody have any opinions on Aussie's Asset Power home loan?

http://www.aussiehomeloans.com.au/Content.asp?ContentID=117719

Pluses: Interest only, 20 yr term, lump sum add. payments, portable etc
Minuses: App. fee, Annual fee, minimum loan pretty high, maximum LVR 80% etc

Interest is set on 30-day Bank Bill Swap Rate + 1.35% which I think was at 6.138% this morning. It is capped at their normal variable rate.

In a situation like mine, where I already have a couple of loans on IP's, both P&I, one being a 100% Offset account, this could well be the next loan for me.
Does anyone know of a similar, better loan? Or should I use a mortgage broker & see if he can come up with something better?

Thanks

 

[Rolf Latham]

Hi Gad

Of course you should see an independent broker, although Im biased.




1.35 on top of 30 day rate is a float around the 6 % mark.

Ok, but when you consider the conditions there are more flexible products out there around the similar rate, with a 30 year Interest Only Loan Term.

The thing to look for with most wholesalers and originators is the pre 5 year exit cost, commonly between .5 to 1 % of the original loan amount if you discharge within 5 years.

Much depends on who your current loans are with, that may carry weight in getting the discounts off the rack rates.

Ta

rolf

 

[gad]

Thanks Rolf

I was unaware that even better deals existed, I thought the 20 yr Interest only was good.
I'll definately see an independant Mortgage broker before seeking out my next IP.

Thanks again.