Hi there and thanks for so many informative,frank posts from people with all levels of investment experience, This is my first post and Im a beginner property investor looking to purchase my first property this year.
Question is, as I feel I would like to be conservative at first I rang the ANZ and asked them what sort of fees I would be up for if I took out a 10 year fixed investment loan and wanted to pay it out in say 3, 5 or 7 years. They said they couldnt provide such figures as there was a 2 page formula or something required to make the calculation. I then offered to give them a specific scenario such as what are the payout fees 3 years into a 10 year term that you took out at 7.45% and now (3 years later) the rate is 8.85% ? They still refused to give me an idea saying it could only be calculated “days” beforehand.
has anyone here had any such experiences with these fixed term loans that could enlighten me on what sort of charges the bank would level in such a situation ? I certainly felt with their unwillingness to divulge such information that it would not be cheap !
James.
James Boddington Photography
http://www.jamesboddington.comYes, I have heard similar arguments when asking.
Basically you will have to reimburse the bank for the interest forgone in letting you out early.
Terryw
Discover Home Loans
Parramatta
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How to calculate the figure will be included in the terms and conditions of the loan. Ask your lender for a copy of the terms and conditions booklet.
Basically, they will work out 2 loan schedules. One at your fixed rate and one at the rate when you get out of the loan. Any shortfall in interest they would have received would be payable as a break cost.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.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
Thanks Terry
James Boddington Photography
http://www.jamesboddington.com
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