Refinancing first home buyers

[inNT]

Hi all. First time poster but have been reading the forum with interest. I just have some questions if I may as I'm quite new to this and I'm just seeking clarification.

I have been trying to make sense of fixed rate home loans in regards to refinancing. I currently have a property under a first home owners scheme here in the NT where the gov owns 29%. But I need to refinance in order to free up equity.

The reason im doing this is so that I can by a new PPOR, i have been looking at TIO fixed rate loan of 4.9% over 3 years. it has a redraw facility as well as offset account, i know to an extent that this will limit my lender options when looking to purchase a new residence, but does this adversely affect the ability to do renovations?

Sorry for the long winded explanation.

 

[Mick C]

Hi Welcome to the forum.

It's a bit late here so forgive me if i misunderstood your question...but it sounds like your wanting more info on your TIO home loan ( Home start NT)?? or are you looking to exit them ( ie refinance out)....

Regards

 

[inNT]

Yes, it was a bit late, sorry, it is currently with TIO as it is contracted them. But i am also looking at staying with the company on a fixed rate, and as i tried to explain (poorly,sorry) im just not sure if going with a fixed rate home loan is the way to go, or does this affect the ability to renovate and then ultimately rent in the future?

 

[Peter_Tersteeg]

I'm still not very clear on what you're asking.

Are you essentially asking if you can get funds to renovate whilst under a fixed loan? Subject to the lenders approval, the answer is yes.

It's generally possible to set up a second loan alongside the existing fixed loan. This might be a construction loan or an equity loan, it depends on the circumstances.

 

[Thann]

I'd talk to a broker who knows about the HomeStart NT conditions...

When we were looking to buy for the first time (Several years ago now), our broker gave us the option of Homestart or normal deposit. (We were eligible for homestart, but also had a big enough deposit)

I don't remember the exact reasons, but we went with normal deposit (IIRC, it was about finance flexibility in the future)

 

[inNT]

Thanks all, ill talk to a broker and hopefully explain to them a bit better.