Hello again
we are in the process of refinancing both our home loan and investment property. With the investment property, its current on IO and has been like this for the last 5 years. I was looking at extending this with my bank (ANZ) who have come back and told me that I have to pay LMI on the loan again unless I am under 80% LVR - I'm a bit annoyed with this as I don't see that I have to pay LMI twice on the same loan. If I have to pay, I may as well change lenders.
When the home loan, its only 2.5 years since we bought it. Current using ING bank loan and checked the balance where only around 7K has been paid off in principal....pretty poor.
I think that this is mainly due to the fact that we had no offset accounts for the home loan and redraws cost $50 a hit.
We have started doing some research on different lenders out there that can offer us a good product and save some $$$ long term. I spoke to a non-banking lender advertising on the radio and they showed us their system where we would pay off around 20-25K off the loan each year. However, I am concern with the following.
1) Interest rate is 7.34% (not the cheapest around)
2) All of our income goes straight into the loan account and all withdraws done to a nominated bank account. All expenses done on credit card and an automatic sweep on card is done each month from loan account. (is this a good system)
3. Valuation for the propery is $500 for first and $250 for second. non refunable.
The cheapest lender I've seen so far is ratebuster.com.au at 7.01%. However they also have a catche.
1). if you pay more than 50% of the loan balance or change lenders within 5 years, you have to pay a 1% fee.
All we are looking for is a simple home home, with 100% offset, no catches and they ability to pay off the loan off quickly and wether to pay the LMIs again on both loans if there will be a benefit in doing this now.
Any suggestion?
Thanks
we are in the process of refinancing both our home loan and investment property. With the investment property, its current on IO and has been like this for the last 5 years. I was looking at extending this with my bank (ANZ) who have come back and told me that I have to pay LMI on the loan again unless I am under 80% LVR - I'm a bit annoyed with this as I don't see that I have to pay LMI twice on the same loan. If I have to pay, I may as well change lenders.
When the home loan, its only 2.5 years since we bought it. Current using ING bank loan and checked the balance where only around 7K has been paid off in principal....pretty poor.
I think that this is mainly due to the fact that we had no offset accounts for the home loan and redraws cost $50 a hit.
We have started doing some research on different lenders out there that can offer us a good product and save some $$$ long term. I spoke to a non-banking lender advertising on the radio and they showed us their system where we would pay off around 20-25K off the loan each year. However, I am concern with the following.
1) Interest rate is 7.34% (not the cheapest around)
2) All of our income goes straight into the loan account and all withdraws done to a nominated bank account. All expenses done on credit card and an automatic sweep on card is done each month from loan account. (is this a good system)
3. Valuation for the propery is $500 for first and $250 for second. non refunable.
The cheapest lender I've seen so far is ratebuster.com.au at 7.01%. However they also have a catche.
1). if you pay more than 50% of the loan balance or change lenders within 5 years, you have to pay a 1% fee.
All we are looking for is a simple home home, with 100% offset, no catches and they ability to pay off the loan off quickly and wether to pay the LMIs again on both loans if there will be a benefit in doing this now.
Any suggestion?
Thanks
