I am self employed. I recently (Feb 04) bought a house and have about $70,000 euity. Currently paying 11% interest on the mortage on 10% deposit.Firstly, can I refinance with lesser interest rate. Have shopped around without much luck. Most want 20% deposit.
Secondly, I am desperatly looking for another income stream and positive cash flow with property looks very inviting.How can I achieve this. Please help.Thanks and Regards
mhkmhk
Hi Mhk
11% interest is very steep, depending on your circumstance I would suggest you could refinance to a lower rate, and access the current equity for a deposit on an IP.Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIAPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Sounds like you might be with GE on their 90% low doc. Since you have only recently settled, there may not have been much growth, so it may be difficult to refinance on a low doc basis as you will only get 80% of value.
But being such a high rate, it could work out cheaper if you withdrew some money from a few credit cards and use these funds to reduce your loan and then get an 80% lvr low doc loan around 7%.
To help with the refinance, make sure all your repayments are on time. There will also probably be high exit fees for your existing loan, so factor these into your calculations.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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