Hi all,
Unfortunately a very large and unexpected dental quote has been given to myselfy of approx $40,000, which we simply do not have. Just wanting to know if it would be possible to use the equity in our house to borrow $50,000 to pay the dentist and also get rid of an existing credit card. Whilst we are at it we would also like to "kill two birds with one stone" and remove our parents from the loan if possible.
We are currently with Colonial (Commonwealth Bank) and half of our loan is fixed at a lower rate, and understand we will probably have to break this to get the funds. If this is the case we are happy to start again at a new lender who may offer a lower variable interest rate.
Thanks in advance for your help.
P.S. Word of advice… Don't go to the dentist unless you are in pain, as it may prove painful in places other than the mouth.
Hi Stu
Firstly sorry to hear about the dentists bill. Forgetting the amount i was more thinking about the $40K worth of pain.
Certainly subject to serviceabilty and equity in your current home you would be able to refinance your CBA loan and borrow an additional amount to cover the unbearable costs.
Couple of other options:
1) Keep the existing loan with CBA and then find a standard lender who will take a 2nd mortgage.
2) Look to utilise the redraw facility you may have on CBA loan.
SHout if you need further help.
Richard Taylor | Australia's leading private lender
Hey, discostu, $40K would have me seriously considered getting the work done offshore. Do a google search on "dental tourism". There are Australian-based companies who can organise overseas dental work at huge savings, usually in Malaysia, Thailand, India, The Philippines, etc. Of course Aussie dentists don't approve of this, but hey, I'd definitely investigate it. You don't go to like a backstreet clinic; they're generally first-world facilities, they're just in places where dentists get paid much less than in Australia.
Regards, Tracey
Get a second opinion from another dentist. Ask your friends who is good and reasonably priced. Check the tax laws you might be eligible for a rebate
Thank you all for your helpful replies.
I am going to arrange an appointment with the mortgage broker that got us our original home loan to look at refinancing or getting a second mortgage. Thanks for the advice Richard and will let you know how I fare or if I need furher assistance.
I have had a second medical opinion and the cost was almost identical. I basically need to have crowns put on all my teeth due to the rapid erosion of them caused by reflux from my stomach. Have got the reflux problem fixed, so now just onto the teeth.
I am actually considering going to Thailand and getting the work done Tracey. Have done quite a bit of research over the weekend and the cost of a crown is around $500 per tooth there compared to nearly $2000 in Oz. I certainly won't be going to any backstreet clinics, I hate going to the dentist as it is.
I will let you know how I go and if anyone is after some dental advice I should be able to help you out with all the reading I have done of late I was going to suggest you go overseas too. I have been to the dentist in Thailand, and they are very professional and clean too. One of my mates also went to the phillipines recently to get some dentail work done. He said it would have cost him $20,000 here, but only about $4000 over there.
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
I'd be careful about going to the Philipines, Thailand or one of the other mentioned Asian countries to get your teeth done. I know that there are some good outcomes but I've heard some horror stories too. Some people have had to pay a fortune to fix up medical work which has been done in Asia. If you get it done in Australia, you've got an idea of what to expect; it Asia you have no guarantees and no comebacks if the treatment is not satisfactory.
You shouldn't have any problems getting your loan refinanced. I've just refinanced most of my properties. This allowed me to access quite a lot of equity which I'm using as deposits for more properties.
I just wanted to add that there may be no reason to break your existing fixed loan. If you have the equity and servicing is ok simply apply for a new loan for 40k, using the same security. If you have a MAV or Wealth Package with CBA then application fee and no ongoing account keeping fees. Hopefully your broker will explore this option first.
Trent CIt pays to have health cover & visit the dentist bi-annually for a check up (or put the same amount into an investment). But ignoring that, I'd run with Trent and try to avoid breaking your current lower fixed rate loan, why pay more than you have to? If it is a lower rate fixed loan, discuss whether or not the bank will pay you to break the loan and move to a more expensive product, after all it is saving them money.
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