Hi there, i am currently with AMS mortgage/GE/wizard what ever crap. Well i am paying nearly 8% interest only on the variable rate which hurts no end. I need to escape and am thinking of either selling my house paying them off and applying for a new mortgage with one of the big 4 or to refinance over to them, what usually the best way? any ideas?
I would definately refinance if you can
.As you are variable you can change lenders without a payout. The cost of selling and rebuying is huge,especially if you like the property and it is doing well.
Ita a no brainer for me
P.S
I forgot to mention I was with Wizard as well.I got out as soon as possible as they were'nt competative. Uncompetative lenders need to lose business as it helps everyone.
Hi Mitch
I'd probably refinance with one caveat and that is, what will your deferred establishment fees be?
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Yes Paul beat me to it.
Thankfully having never used GE to do a loan i can only imagine what the DEF will be be but given that there are a couple of loan products out there at circa 6.5% you will be saving yourself 1.5% per annum straight off the bat.
Certainly do the exercise as lenders such as this need to be taught a lesson.
Richard Taylor | Australia's leading private lender
HI mitchperth.
Dont sell unless you have to. If you have a good payment history on your loan, I'm sure you will be able to easily refinance with a more suitable lender – unless you do not have much equity in your home. I recently assisted an older couple to get out of one of these AMS loans, and even though they were 'tight' repayment wise, I got it approved based on their conservative LVR, and strong history -even though they were 'technically' over committed. If you sell, you have to buy again, and you have the 'crimianl' stamp duty to pay the govt. If you have had your loan with WIzard for more than 4 years, you will have either a minimal or no exit fee at all. GO for it – the quicker you leave those guys now the better. AMS are care factor zero in client retention, and as you pointed out are well above even the so called 'standard' bank variable rate. ANZ, NAB, your local credit union, or a good broker that is experienced in dealing with the 'big 4' will easily assist you I'm sure.
All the best.Hi there, sorry i had forgot that i had posted this…..I have re-read my first post.. I am bascially going to upgrade so am looking to refinance out of AMS CRAP which will be $4,000 break out fee and then go with one of the big 4 which are prepared to lend me around 80k more to buy a larger place…..So should i refinance first then borrow the money off my new lender or sell up pay AMS off the apply for a hole new loan with this new lender?
Mitch
It all depends on whether you intend to sell the first place or not as to the process steps involved.
Richard Taylor | Australia's leading private lender
The house is going on the market in 1-2 months any way….So do i wait and take up a hole new mortgage with my new lender when my house has sold, or refinance now and take out the extra with my new lender?
All i keep hearing from my new lender is to sell up and take out the new loan and not refinance first just wondering why he is sujjesting that?
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