Most popular Home Loan products at the moment
- Thread starter kimba88
- Start date
Really? I thought it was just be a CPEng
Rolf is spot on! Why try and go it alone when there is so much available help and in terms of lending that help is free. Heck most specialist areas will give you a first consultation free of charge. I can guarantee you 30 minutes with a broker discussing YOUR goals will be more of a benefit than the next 3 general books you read.
Haha 'hope is not a strategy' - your business mentor sounds smart. Bet his doing well. Pretty accurate summary of what many investors get wrong early. Buy and 'hope' for some gain.
Re the OP, as others have pointed out, don't see why you'd refinance out of ANZ. Based on a cost consideration itself, its important to have a full picture of the pricing and look beyond the 'rate'. Refinancing will cost you over $500, and thats a conservative number. On top of this, you'll have to pay LMI again.
Talking to banks individually will lead you to a series of sales pitches about their products - generally without a complete assessment of what your looking for.
Also pretty sure ANZ will reduce their 5.08% rate - you should be able to get it to sub 5% without any trouble at all. Give them a call or just request one of the brokers on here to do it for you.
Cheers,
Redom
Kimba, I really want to stress to you how important getting good advice is. You may not think these things important now but down the track when you are at the limit of your borrowing and want to swap stuff around and then find you can't because of a decision you made years earlier..... well there is that saying about an ounce of prevention is worth more than a pound of cure (OMG, that made me sound old!).
As someone who structured poorly and then came very close to losing a portfolio of 9 properties that took us a decade to build up, please talk to one of these guys!
As someone who structured poorly and then came very close to losing a portfolio of 9 properties that took us a decade to build up, please talk to one of these guys!
With the current Suncorp package deal where they are waiving the annual fee for life - if I apply today, what is the chance of the refinance going through before year end? I have heard there are a few delays with the process.
I am not expecting any issues with valuations or income etc.
I am not expecting any issues with valuations or income etc.
Hi Coolcup69,
I would say very likely. I had a loan formally approved today which was submitted last Tuesday. Mind you we did do the valuation upfront. I am select broker with them which means I get slightly better / quicker service than other brokers.
The refinancing of the old lender part will usually take 3 -4 weeks or so depending on the outgoing lender.
I would say very likely. I had a loan formally approved today which was submitted last Tuesday. Mind you we did do the valuation upfront. I am select broker with them which means I get slightly better / quicker service than other brokers.
The refinancing of the old lender part will usually take 3 -4 weeks or so depending on the outgoing lender.
Should be ok coolcup - their offer is generating a lot of business, particularly through the broker channel. It's taking them a few days to assess each application through to approval - then your talking a couple weeks for loan docs to be issued/sent back, couple weeks for discharges to come through and it to be finalised.
But i'd get moving on it sooner rather than later.
Wow, i had no idea i had so many replies to this post. It seems i don't get all email notifications when somebody posts.. hence why i haven't replied yet.
I'm trying to understand it all a bit better now by looking beyond the rate. Why would i need to pay LMI again if my house has a valuation done first? ANZ have already valued my house at 60k more - which probably isn't that much in equity to play with anyway - especially if i reduce my LVR to 80%.
I've spoken to multiple people from ANZ and none have said they will reduce the rate.. even with threatening to leave.
I'm very thankful for the advice i am getting from everybody here. I appreciate all advice an opinions relating to this and helping me build a portfolio. I would love to buy soon - possibly in Brisbane or Gold Coast, but i'm not sure if i'd have enough equity and savings. I also don't know how i should structure my next loan in regards to having it together or separate with ANZ or going to another bank.
I'm glad you didn't lose your 9 properties! That would be devastating! Can i ask, what did you do for it to be structured so badly?
I'm trying to understand it all a bit better now by looking beyond the rate. Why would i need to pay LMI again if my house has a valuation done first? ANZ have already valued my house at 60k more - which probably isn't that much in equity to play with anyway - especially if i reduce my LVR to 80%.
I've spoken to multiple people from ANZ and none have said they will reduce the rate.. even with threatening to leave.
I'm very thankful for the advice i am getting from everybody here. I appreciate all advice an opinions relating to this and helping me build a portfolio. I would love to buy soon - possibly in Brisbane or Gold Coast, but i'm not sure if i'd have enough equity and savings. I also don't know how i should structure my next loan in regards to having it together or separate with ANZ or going to another bank.
I'm glad you didn't lose your 9 properties! That would be devastating! Can i ask, what did you do for it to be structured so badly?
Haha yes, that's SS for you - wealth of knowledge! Its a great place to learn.
You wont be up for more LMI if you stay with ANZ. If you have an extra 60k in equity, you should be able to borrow against it and take out some of that equity to use to fund another purchase. This will depend on your borrowing ability and whether the banks deem that you can afford to purchase another home.
Regarding the LMI cost involved with this - ANZ will 'credit' the existing LMI you've already paid, and you'll only have to pay LMI again on the additional equity you take out. So if you take out an extra 50k, you'll pay LMI on a 50k amount (small).
On the other hand, if you refinance to another lender, and take out a loan for the entire amount, you'll have to repay LMI on the entire balance (big!).
I'm quite surprised by ANZ's response to you threatening to leave, discounting to sub 5% (very small discount!) hasn't been too difficult with them.
Cheers,
Redom
Would it be advisable that i reduce my LVR to 80% or use most of the equity for another deposit? i didn't think i've paid any LMI yet. I thought it was just added onto the 'end of the loan'?
From what Suncorp was saying, they would value the house first, then if it was worth more and i had enough equity, i wouldn't have to pay LMI. I'm not sure how true that is, but it could be Suncorp trying to sell me their product better.
Yeah, so am i! I've spoken to someone in a physical branch, spoken to a person over the phone, and even my broker said they wouldn't budge. It's weird how you guys are saying they should be budging. I thought i was usually quite convincing when negotiating. Could it be because i have 40k sitting in my offset account too? Just didn't know if that could affect it
Hmm Kimba88 - perhaps talk to your broker about your goals in investing in property.
With a complete picture of what you'd like to do, your broker will have a better idea of whether refinancing down to 80% or taking advantage of LMI is advisable.
Generally speaking, if you'd like to purchase more properties and make your deposits work harder for you, using LMI is a great tool. If you don't plan on adding to your portfolio, the cost of LMI may be greater than its benefits.
Cheers,
Redom
Hi Kimba
If you're thinking about refinancing above 80% then you'll prob be best sticking with ANZ.
The suncorp promo rate doesn't apply to deals above 80% LVR and ANZ are going to be easier to deal with for cashouts above 80% IMO.
Did you pay LMI on the ANZ loan previously? I couldn't see in the post history if you did.
Cheers
Jamie
If you're thinking about refinancing above 80% then you'll prob be best sticking with ANZ.
The suncorp promo rate doesn't apply to deals above 80% LVR and ANZ are going to be easier to deal with for cashouts above 80% IMO.
Did you pay LMI on the ANZ loan previously? I couldn't see in the post history if you did.
Cheers
Jamie
Agree with Jamie on this - ANZ are great in this space. Kimba, this could play a role depending on your strategy.
We're you planning on going to Suncorp without your broker? It seems as though you have a some questions about their product that your broker should be answering for you.
Cheers,
Redom
So after a few weeks delay, I am now expecting formal approval from Suncorp on Monday 1 December. I am refinancing from NAB. Do you guys think this refinance will be able to get through before year end or am I no hope?
and call them the day after to ensure it's received - and follow up again after that!
Outgoing lenders don't give priority to discharging mortgages - the trick is to continue hounding them.
Cheers
Jamie
