Amit,
This is pretty standard with banks. You are changing the purpose of the loan to an investment (business). Business loans, even if on residential property, are seen as slightly more risky by banks, therefore they charge a higher interest rate.
Please remember, as an investment, interest on a loan is tax deductible.
Also, make sure you shop around to see if you can get a rate from another bank that is even better.
Swampy30
An interest only loan isn’t classed as a business loan. Nor is an interest only loan which is securing an investment property.
In any case, you could be getting a lot worse than 6.92% – that’s a pretty good deal.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
my loan amount is 500+ and that is why I was given a special discount that is .10
Normally they were giving me 6.92%Even on $500k + it’s still a pretty good deal (from an interest rate perspective anyway).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
If you are not happy, then I would suggest you refinance with a better rate.
Also you can claw some of the trailing commissions back by subscribing to Your Share (.com.au). This could put some cash back into your pocket.
Modernity Investing
Email MeHi where n how
What do you mean by "claw" some of the trailing commission back?
Also, why are you digging out 18 month old threads?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I’m thinking It’s similar to how refund home loans used to work. But seriously 18 months is a long time.
Hi Joe
Yes bang on and we know what happened to Refund Home Loans.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I was talking to a mate last week about refund home loans. We both agreed it was a great policy but we couldn’t understand how it failed? Just run out of cash flow?
YourShare is actually pretty good and has won best cash back service in Money magazine for a couple of years I believe.
Don't think it really works on home loans, but is meant for most insurances like car and life insurance etc. You can get a couple hundred bucks back a year all for nothing. If you buy this months Money magazine 'the best of the best 2013' it has a little article about it in there. As well as other award winning products. Quite interesting.
jmsrachel wrote:I was talking to a mate last week about refund home loans. We both agreed it was a great policy but we couldn't understand how it failed? Just run out of cash flow?From my personal experience – the knowledge level and quality of the few brokers I met was very poor. This may have had something to do with it.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Last I heard Wayne ormond (i think that’s his name) was being chased by creditors and all the people that purchased a franchise from him were doing it real tough.
Refund Home loan has now been purchased by Homeloans Ltd although here in SE Qld many franchises decided not to sell their meagre trail book.
As has been mentioned lack of professionalism and experience of any of the owners was often an issue.
Wayne was not even a Director of the Company (resigned as a Director 18 months ago or so) so got away scott free.
Channel 7 was a large unsecured creditor with much owed in unpaid advertising costs.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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