a friend called last night and asked about soemthing that i didn't think could be done, but not sure myself.
she and her husband had three properties on three different accounts with NAB, all on variable rates (they all recently came off fixed). they want to refinance with another lender, but because it is still within a certain period, they would be hit with, she says, $900, break cost per account. She is thikning that she is going to consolidate all three accounts into one, then refinance at the time, which will save her having to pay $900 x 2 = $1,800.
Is this right? Can this be done?
Wooooow be very careful consolidating accounts especially if there is a mix of investment and personal debt involved.
Unlikely the NAB will waive their DEF however that is not a particularly high amount in this market place.
If she is going to refinance it is best that she try and ensure the loans are structured correctly to avoid any mess in the future.
Without knowing the actual figures it is difficult to make any real suggestions on the loans should be structured.
If she wants to shoot me an email I would be happy to make some recommendations.
Richard Taylor | Australia's leading private lender
And most likely NAB will recognise this 'idea' of hers when it is time to re-finance.
Why not just negotiate better rates with NAB? Given their 3 loans with NAB, I'm sure your friends can do this.
Good luck,
CattleyaCattleya
Here to learn the ropes of property investing & share knowledge, not trying to sell anything at all.
I would expect in consolidating the three different accounts to one account there would be variation costs involved. I would expect such efforts may be short lived.
Plus remember unless they have a package type arrangment, they will be up for switching fees/charges to combine the loans like this to start with, and with three properties three mortgages to dischage. A strange idea a salready mentioned. Unless they are on a standard variable rate bank loan, and for some reason are unable to verify their income to qualify for a 'restructure' to a cheaper loan/s, where on earth would they find a major with rates that much cheaper to make up for around $3500 in fees? I guess they can always do one at a time to 'tread the water' but a cheaper way would definately be to renegotiate. I guess a lot depends on the size of the loan/s and what they are trying to achieve more than a change for the sake of a change. (ie Equity release? Not happy with a valuation? Service?)
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