Cheapest no frill loan?

[davidw89]

Hi guys,

I'm currently with Westpac on 6.43% variable with an annual $400 package fee. The loan is Interest Only, $600k but i'm looking to switch to principle and interest, this is for an investment property. I would like to switch to Ubank but it looks like they will decline me since i don't satisfy there 1 year employment rule. Is there any other lender i could consider?

 

[Aaron_C]

If you want no-frills 6.35% is achievable with Heritage.

 

[Rolf Latham]

Hi guys,

I'm currently with Westpac on 6.43% variable with an annual $400 package fee. The loan is Interest Only, $600k but i'm looking to switch to principle and interest, this is for an investment property.

Hi David

Im known for taking things of tangent: )

Why are u looking to go PI on an IP ? got all your PPOR debt paid off and will never have to lend for nondeductible stuff again.

ta
rolf

 

[Marty McDonald]

Seems a pretty good rate to me and a particularly good package discount. Yes slightly better %'s around but I wouldn't switch to a no service provider to pick up a few points if it was my loan.

 

[Jamie M]

Seems a pretty good rate to me and a particularly good package discount. Yes slightly better %'s around but I wouldn't switch to a no service provider to pick up a few points if it was my loan.

I'm with Marty - besides, there's going to be costs associated with the refi that need to be considered (outgoing lender fee, potential incoming application fees and Govt. charges).

Back to Rolf's tangent though - why the switch from IO to P&I?

Cheers

Jamie

 

[davidw89]

Well i guess with the increased outgoing cash flow that pays off the debt faster and it encourages me not to spend as much especially with the increase in repayment.

 

[Terry_w]

Well i guess with the increased outgoing cash flow that pays off the debt faster and it encourages me not to spend as much especially with the increase in repayment.

Do you have non-deductible debt?

 

[Rolf Latham]

Well i guess with the increased outgoing cash flow that pays off the debt faster and it encourages me not to spend as much especially with the increase in repayment.

soooooo

u regard yourself as being "not good with money" ?

ta

rolf

 

[RumpledElf]

All this talk of 6.3% is positively depressing when you're stuck on a 7.42% loan *sigh*

 

[Terry_w]

All this talk of 6.3% is positively depressing when you're stuck on a 7.42% loan *sigh*

That is high - why are you stuck? Was it a fixed loan?

 

[Aaron_C]

All this talk of 6.3% is positively depressing when you're stuck on a 7.42% loan *sigh*

lol it's not so bad. Most important thing is getting the money in the first place!

 

[RumpledElf]

That is high - why are you stuck? Was it a fixed loan?

Since we got the loan our income breakdown has changed dramatically (youngest kid got old enough for me to think about working again). I can't see someone giving us a loan based on 6 months self employment. We got the loan a few weeks before starting work, and paid off 30% of it straight away and can't even refinance to lower the weekly repayments. We have 8 years remaining on a 6 month old loan at minimum repayments. We're not exactly a mortgage broker's dream.

 

[Aaron_C]

How long have you had your ABN for?

 

[Mick C]

Since we got the loan our income breakdown has changed dramatically (youngest kid got old enough for me to think about working again). I can't see someone giving us a loan based on 6 months self employment. We got the loan a few weeks before starting work, and paid off 30% of it straight away and can't even refinance to lower the weekly repayments. We have 8 years remaining on a 6 month old loan at minimum repayments. We're not exactly a mortgage broker's dream.

If you have 6 month trading statements or 6 month worth of BAS.....as long as you have the ABN for more then 12 month you could potentially refinance down to 6.9% on a 60% LVR using just the trading statement and BAS..

 

[Rolf Latham]

If you have 6 month trading statements or 6 month worth of BAS.....as long as you have the ABN for more then 12 month you could potentially refinance down to 6.9% on a 60% LVR using just the trading statement and BAS..

yeah, but I think rumple lives in a postcode that isnt on the acceptable security list for most lenders

ta

rolf

 

[Mick C]

ohhhh fair enough then...you must live in the lazy town of ACT then...kidding ( sorry Jamie )

 

[Jamie M]

ohhhh fair enough then...you must live in the lazy town of ACT then...kidding ( sorry Jamie )

Wash your mouth out. This is all Genworth category 1 down here

Cheers

Jamie

 

[RumpledElf]

Are there 3 tiers of postcodes or two? I used to live somewhere the banks (or LMI?) wouldn't touch but moved a few years ago. No shortage of new builds here but the bottom has fallen out of the sub $400k market here since the wind farm was finished and you can't get stupid high rents anymore. Interesting to see a house that was rented for several years straight at $220 a week while for sale for $200k take a price haircut down to $140k 5 minutes after they lost the tenants. Interesting times - ours was the first house to sell at the 'new price' cos we wanted a fast sale. Its actually quite entertaining seeing the enormous drops in asking prices on older houses here. Gotta be bad if you want a valuation done. Great if you want a cheap house that needs a lot of work, they actually exist again.

 

[Aaron_C]

There are 3 tiers. Metropolitan, Regional and National (QBE). Or Category 1, 2 and 3 (Genworth).

 

[Rolf Latham]

There are 3 tiers. Metropolitan, Regional and National (QBE). Or Category 1, 2 and 3 (Genworth).

and CAT no go

ta
rolf