When and how often do you refinance?

[WillG]

I have some IP loans about 5 years old and are thinking about refinancing to release some equity and to negotiate a better rate. I figure "delayed establishement fees" won't come into the equation because the loans are about 5 years old.

What are some things I should look out for?

Should I go through my mortgage broker?

I currently get a 0.7% discount on a pro pack(Westpac) but would like a higher discount. After reading another thread it appears 0.8 and above are possibilities.

Thanks

 

[Rolf Latham]

Now ............ bu sseriously does depend on a buch of things


I cant comment on if you should go through a broker or not


Lowest "Effective" rates in the current market are 20 to 30 + pts below what WBC is offering on their standard discounted pro pack ( subject to LVRs) , so to get near those you need 90 to 104 pts to get there. having said that the Rocket product is one of the best on the market.

Maybe u can beat the branchie at WBC with a big stick to provide a 100 pts off, I have seen stranger things


ta
rolf

 

[tobe]

You dont have to refinance to apply for a further interest rate discount with your current lender. You can do it either through a broker or the branch.
Having said that, its usually better to borrow funds before you need them, so perhaps refinancing now to get access to the deposit on the next purchase or renovations etc is not too bad an idea.
You will most likely get the best interest rate discount offer from the retention team once you have submitted a discharge request, however the retention teams are notorious for not communicating with credit teams, so make sure if you are going to back away from the discharge that you also get the product etc that you need as well as the discount.