refinancing costs

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Anonymous

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From: Anonymous


Hello all,

I'm a newbie and this is the first time I am refinancing my home loan. I'm going through cost calculations at the moment, and I just wanted to check that I have covered everything. Am I correct that the following are all of the costs involved?:

1. loan establishment fee (variable between lenders, ~$600 for comm bank)
2. stamp duty on mortgage ($5 plus $4 for every $1000 over $16k)
3. early repayment fee for repaying first home loan early (1st month's repayment for RESI who I am currently with)
4. title fees, including registration of mortgage

Is that it? I'm not sure how much point 4 will cost. Does anyone know where I can find this out?

Cheers

Anon
 
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Reply: 1
From: Geoff Whitfield


Conveyancing fees (legals). My last was $800 including disbursements.

Other charges the banks may levy (they may also charge you their legal fees)

Inspections (building & pest)

Quantity surveyors report (if you are going to rent out- highly recommended to get all available depreciation

If you are using a house in joint names to refinance a purchase in your name, your partner may be obligated by your contract to seek independent legal & financial advice.

Landlords insurance; building insurance.
 
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Reply: 2
From: Russell Chellew


Hi Anon ,

Titles office & stamp duty fees vary from state to state .

Ensure that you receive Loan stamp duty rebate up to the amount of your current loan with RESI .(so you wont have to pay this twice)

Titles office fees VIC
registration of discharge Resi mortgage $59
Reg of new Mtg $59

Title search fee approx $18

In addition to early repayment fee RESI may have a settlement fee (most lenders charge approx $150) and possibly a fee for preparing discharge of mortgage (approx $100)
Check your original loan agreement with Resi which should have these fees listed or give them a call.

regards


Russell
 
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Reply: 3
From: Rolf Latham


Hi ANon

Obtuse question But why are you refinancing from a Lender like Resi to a lender like CBA ?

Ta

Rolf
 
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A

Anonymous

Guest
Reply: 3.1
From: Anonymous


Hi Rolf,

Good question about why would one leave RESI to go to comm bank. I'm the one who put up the post last week regarding switching to an offset account with an interest only loan. That way when I want to upgrade to a new PPOR I can take the money from the offset account and have a tax deductible loan still left over. RESI doesn't have an offset account facility. I'm not sure if we're going with the comm bank yet. ANZ and St george also have good products.

Cheers

Anon
 
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A

Anonymous

Guest
conveyancing fees

Reply: 3.1.1
From: Anonymous


Hello,

Thanks everyone for replying to my question. Just wondering, are the conveying fees those required to prepare the mortgage documents? ie the mortgagee legal costs? If so, aren't they usually covered in the establishment fee of major lenders?

Cheers

Anon
 
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WebBoard

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conveyancing fees

Reply: 3.1.1.1
From: Will G




Are establishment fees etc.. negotiable ?
A friend of mine refinanced his mortgage with a different bank and they waived the fees. Seemed they were happy to get the other banks business.
 
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RE: conveyancing fees

Reply: 3.1.1.1.1
From: Duncan M


> Are establishment fees etc.. negotiable ?

Read Herb Cohen's Book, "You Can Negotiate Anything"..

And yes, Establishment Fees are very negotiable, I haven't paid one for
years.

Duncan.
 
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Reply: 3.1.2
From: Rolf Latham


Hiya

Resi is not unique there.

You will find that the vast majority of the securitised lenders do NOT have the offset type product in their arsenal, and those that have make it expensive. It is a big hole in the product range for the serious investor or those that are savvy enough to preserve their tax deductbality when moving from PPOR and making PPOR an IP.

I am constantly amazed at the number of people that look at their mortgage as a straight commodity item when its usually the most expensive thing they will ever buy, and could be the best financial tool they will ever own.

The issue of protecting your tax deduction entitlement alone can be worth 100s of thousands of dollars depending on the size of the mortgage.

Ta

Rolf
 
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Reply: 3.1.2.1
From: Will G


Couldn't agree more Rolf.

A good 100% offset account gives most of the benefits of a LOC, 'preserves tax deductbality' and is often cheaper than a LOC.

Will
 
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conveyancing fees

Reply: 3.1.1.2
From: Jas


On 6/20/02 8:27:00 AM, Anonymous wrote:

>wondering, are the conveying
>fees those required to prepare
>the mortgage documents? ie the
>mortgagee legal costs? If so,
>aren't they usually covered in
>the establishment fee of major
>lenders?

Sometimes they are, but not all the time. It also depends on your structure. If you have a trust or something complicated, the bank's solicitors have to read the trust deed. Guess who gets to pay for that? Not the bank.

Jas


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When facing a difficult task, act as though it's impossible to fail. If you're going after moby dick, take the tartar sauce
 
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