Hi
I currently have a dilemma and have been offered the following loans:
Bankwest:
6.90% for first 3 years, then reverts to much higher rate of 7.58%. I spoke to the bank manager though about this and she assured me that she could switch me to the Premium Loan (rate of 7.10%) and waive the transfer fee, however she can't put that in writing.
$15 monthly offset fee
LMI of $9,150 capitalised onto loan
NAB:
Offered 0.8% discount off standard variable rate for life of loan - 6.87% due to me complaining about service.
Annual fee for first year waived. Otherwise, ongoing annual fee of $395.
LMI of $8,668. Only half of which can be capitalised.
Now long-term wise NAB is the better offer, however in the short term the Bankwest one is better for me as I can capitalise all of the LMI (freeing up cash) and I am a current customer. I calculated only $100 difference (NAB's favour) between NAB and Bankwest over the 3 years.
I was thinking after the 3 years I would definately shop around again, however am worried that I would be hit with another LMI premium if my LVR is not greater than 80%.
What should I do? I really would prefer to have the extra $4k cash (if going with Bankwest as LMI fully capitalised) sitting in the offset account, but should I really be looking at the bigger picture.
Cheers
I currently have a dilemma and have been offered the following loans:
Bankwest:
6.90% for first 3 years, then reverts to much higher rate of 7.58%. I spoke to the bank manager though about this and she assured me that she could switch me to the Premium Loan (rate of 7.10%) and waive the transfer fee, however she can't put that in writing.
$15 monthly offset fee
LMI of $9,150 capitalised onto loan
NAB:
Offered 0.8% discount off standard variable rate for life of loan - 6.87% due to me complaining about service.
Annual fee for first year waived. Otherwise, ongoing annual fee of $395.
LMI of $8,668. Only half of which can be capitalised.
Now long-term wise NAB is the better offer, however in the short term the Bankwest one is better for me as I can capitalise all of the LMI (freeing up cash) and I am a current customer. I calculated only $100 difference (NAB's favour) between NAB and Bankwest over the 3 years.
I was thinking after the 3 years I would definately shop around again, however am worried that I would be hit with another LMI premium if my LVR is not greater than 80%.
What should I do? I really would prefer to have the extra $4k cash (if going with Bankwest as LMI fully capitalised) sitting in the offset account, but should I really be looking at the bigger picture.
Cheers