Tendering for $1 Million of Debt to be Re-financed

[charlieandkath]

We have $1 million debt with several different loans probably averaging 8% with CBA. Is there anyone out there that can refinance the lot and fix it for five years at 6.5% or better? Would be keen to hear from all the mortgage brokers on here.

Best tender not necessarily accepted.

 

[Peter_Tersteeg]

If you've got loans with an average interest rate of 8% with CBA, I'd assume some are either fixed or commercial in nature.

If they're fixed, you need to get a payout figure of what it'll cost you to refinance. I suspect you'll find the costs of doing so probably exceeds the benefit.

If they're commerical, it probably won't be possible to acheive the sort of rates you're looking for.

Come to think of it, as of today, I'm not aware of any lenders offering 6.5% over 5 years - certainly 3 years, but 5 year fixed is currently just under 7%.

You might be better served if you actually describe your problem and ask for some preliminary solutions. You could then contact those who have reasonable responses to discuss in more detail.

 

[Aaron_C]

As PT Bear said it depends on what type of debt you have, the security value and whether it is a commercial or residential loan.

 

[Mr. Fabulous]

 

[BV]

We have $1 million debt with several different loans probably averaging 8% with CBA. Is there anyone out there that can refinance the lot and fix it for five years at 6.5% or better? Would be keen to hear from all the mortgage brokers on here.

Best tender not necessarily accepted.

C&K
I'm surprised you are paying so much.
Is the LVR over 80%
Why don't you approach them and try to get a package deal?

 

[Rolf Latham]

8 % is above the most expensive standard rate they have for resi, so as has been suggested there is perhaps more to that

In consideration of if a lender eve wants a loan or portfolio of loans there is a whole lot more to consider than just the loan volume.

the other consideration is that by you focussing on rate, rather than what you might REALLY need, you may be doing yourself a BIG disservice


ta

rolf

 

[MC1]

Tendering ..... now I've heard everything

 

[Mick C]

Sounds like a Commercial deal/property for sure or a mixture.

Could you give a bit more detail? its hard to access based on the infor given only.



Regards
Michael

 

[SamSiam]

I have a commercial property loan for 600k at a 25% LVR that I would like to get fixed for 5 years also under 6.5.....that'd be awesome....ta much.

 

[Mick C]

I have a commercial property loan for 600k at a 25% LVR that I would like to get fixed for 5 years also under 6.5.....that'd be awesome....ta much.

Not sure if this is a serious post or not

But if it is, the best you can get for fixed for commercial is - 3 years fixed 7.06%. Or 1 year fixed 6.90%

Regards
Michael

 

[charlieandkath]

G'day everyone, thanks for all the replies, sorry I have not replied earlier, been flat out putting a massive pergola in.

OK, the debt consists of $650,000 on residential worth $850,000 and $350,000 on a farm worth $2.5 million.

We are currently paying 7.21% on the $650,000 as it is a Line of Credit and we are paying roughly 8.3% on the farm debt of $350,000. All loans are with CBA.

Income from Residential is $800 a week with costs of $1150 a week with interest.

Income from all other activities is about $60,000 a year after costs. We live on about $48,000 and the other $12,000 goes to make the shortfall on the residential properties.

Therefore as you can see we are not really going anywhere. We are probably making a capital gain of about 5% a year on the asset base but this is not helping the cashflow.

Hope this helps a bit,

Cheers, Charlie.

 

[Aaron_C]

G'day everyone, thanks for all the replies, sorry I have not replied earlier, been flat out putting a massive pergola in.

OK, the debt consists of $650,000 on residential worth $850,000 and $350,000 on a farm worth $2.5 million.

We are currently paying 7.21% on the $650,000 as it is a Line of Credit and we are paying roughly 8.3% on the farm debt of $350,000. All loans are with CBA.

Can definitely get you a better deal on both. But are you PAYG, self-employed? Can you provide financials?

 

[Mick C]

Is this a working farm? ie income producing etc...

You can get a better deal onthe LOC that's for sure- a lot of bank would refinacne the LOC with no "rate loading" meaning the interest rate is the same as a non-LOC ( term loan).

Farm- need to know a bit more, size, income?, postcode? and how is it valued 2.5M? is it bushiness value or land?

Regards
Michael

G'day everyone, thanks for all the replies, sorry I have not replied earlier, been flat out putting a massive pergola in.

OK, the debt consists of $650,000 on residential worth $850,000 and $350,000 on a farm worth $2.5 million.

We are currently paying 7.21% on the $650,000 as it is a Line of Credit and we are paying roughly 8.3% on the farm debt of $350,000. All loans are with CBA.

Income from Residential is $800 a week with costs of $1150 a week with interest.

Income from all other activities is about $60,000 a year after costs. We live on about $48,000 and the other $12,000 goes to make the shortfall on the residential properties.

Therefore as you can see we are not really going anywhere. We are probably making a capital gain of about 5% a year on the asset base but this is not helping the cashflow.

Hope this helps a bit,

Cheers, Charlie.