prepaying interest

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Anonymous

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From: Anonymous


Is now the time to start talking to a bank re interest prepayment? How do I go about it? Where do I start?

Regards,
Anon
 
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Reply: 1
From: Russell Chellew


Yes Now is the time .

You will need to draw down loan prior to June 30th.

Most of Major Banks offer prepaid interest in advance or you could approach an independent Mortgage broker for some assistance.

regards


Russell
 
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Anonymous

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Reply: 2
From: Anonymous


Thank you, Russell. But what do you do with existing loans? Who in the bank do you speak to? What sort of interest discount would you be asking?
 
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Reply: 1.1
From: Russell Chellew


Hi Anon,

Speak to your existing lender 1st to see if they have interest in advance loans,if so ask to refinance into one.

Failing that ,I can provide assistance in finding another lender that could meet your requirements.

You have an option of pre paying interest either, monthly,quarterly,half yearly or annually. The best rate discounts are for annual interest in advance option (up to .20% discount to normal fixed rate)down to about .05% discount for monthly in advance option.

regards

Russell
 
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Reply: 2.1
From: Kellie Dutton


Anon

If you are unsure of timing, ie worrying about getting in prior to end of financial year, I would recommend you speak to your accountant who can explain the tax implications properly.

As far as process, this depends on what loan product you currently have and with whom. You may be able to simply 'amend' what you already have or re-finance may be more appropriate.

If you don't have a contact within the bank it can sometimes be difficult to find someone to speak to who can actually give you answers. Give them your loan number and HOPEFULLY they will have someone assigned to be dealing with it.

Failing this, if you don't want to deal with the bank yourself or finding problems there are a few of us on the forum who can help including myself and Rolf.

Many lenders will do interest in advance, as an example I have 22 lenders on my panel and 13 of them will do it.

Hope this helps
Kellie

kdutton@smartline.com.au
 
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