I am speculating that I am probably now paying too much interest.
I have 3 loans, all with Adelaide Bank, thru Vision. They were all taken out at different times over the past 3 years.The latest one has just been taken out.
I am at 75% LVR – banks valuation and have paid nil LMI. I.O. loans. 1 at 7.09 % and 2 at7.1% all variable.The loans are as follows
195k 172k and the latest one 185k.Adds up to 552k.
The loans are on two properties/mortgages.I am thinking about negotiating with these financiers and trying for a better rate.
Surely 552k in business deserves a better rate than say 195k.
Are there any finance people here who can give me an idea on how to approach this??
If you think I am doing ok then just say so.
PS there is a heavy slug for early exits.Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Hi Giddo,
If we are talking prime lending then you are definitely paying above average rates.Based on your current level of borrowing It is well worth negotiating with your current lender for a lower rate, Suggesting you intend to take your business elsewhere is usually a good ploy,
However I doubt they will match the rate you could get with a pro pack type product, as always the correct structure should be paramount, cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
hi giddo
you could probably save about $2700 – 2800 a year in interest if you can reduce the rate by about 0.5%.
how does this compare with the exit costs and entry costs of going to a new lender? at some stage there will be a break even point, pretty easy to work out and then you make what really is a commercial decision to proceed or not.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneI would be considering a professional package with a major lender. This will also save you other banking fees etc.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
It is true that some banks (maybe a few even) will pay break costs to secure your business.???
Westpac offered me $600 per loan to pay break costs from existing financier. That would enable me to transfer in some loan and take toatl borrowings with Westpac up to in excess of $250k in loans and qualify for a special package !!!??
Might be worth a look giddo and I believe the rate was 6.62%Cheers Len
Yes, shop around. Always does it good than harm.
cheers,
Your definitely paying way too much. With a loan amount over $500k you could probably get a loan specially priced at around an 0.8% discount off the standard variable (currently 6.52%).
Regards,
Cameron Perry
Finance Consultant
F.R. Perry & Associates
Level 13, 30 Collins St
Melbourne VIC, 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
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