I have a premium option h/l with westpac. Does anybody know what the exit fees are ?
The advise I am getting is to move to a LOC in preparation for investments.
Regards,
ElvisWhy are you being advised to move to a LOC?
Is it a broker advising you?
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Elvis,
The Westpac premium option package has a top up facility at a cost of $400 you could switch to a combo loan, This may be more cost effective than a total refinance,
Or Check your loan documents for the break costs,Are you getting any discount off the 7.07% rate ??
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Destiny are suggesting the move to an LOC (not forcing the issue). In line with Margaret Lomas’s guideline (as per Income for a Life) to have one LOC with multiple accounts. Am I allowed to talk about Destiny on this forum ?
I am currently on 6.57%, yes I get the 0.5% discount.
What is the combo loan ?
Regards,
ElvisI’ve just been told the Settlement fee is $150 if refinancing (my case), $0 if paying out. No other fees.
Still keen to hear other opinions and more on that combo loan ?
Regards,
ElvisHi Elvis
The Westpac combination loan allows you to combine a home loan with 1 or 2 investment loans, Each loan operates independently of the other loans, this package may include a LOC,You may not require a LOC, there are other options/products that may be of more benefit, perhaps an account with an offset attached, (disclaimer, seek professional advice regarding the benefits of offset products) IMHO, In some instances a Line of Credit can sometimes be a disadvantage,
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Hi Elvis
I am new to this site so this is officially my first post.
Believe it or not I actually work for Westapc dealing with home loans.
If the loan is a standard premium option (and was not a 1yr guarantee rate originally) and you want to refinance you will pay the balance of the loan, any interest accrued at the time of settlement in addition to $150 settlement fee.
If you have lending in excess of $150k there is a package called premier advantage that costs $300 per year and this would mean you can recieve interest rate discounts and other savings and it would cost you $0 application to set up your LOC. Although I agree with other posters here it is not the best product for everyone.
When looking at refinancing to another lender remember to check whether you will need to pay stamp duty on the mortgage again (if you are anywhere else but NSW), along with other costs to refinance. Sometimes it is a cheaper option to stay with the lender your with.
When looking at refinancing I look at the following:
Costs to leave, stamp duty paid on mortgage again (if applicable), coasts to establish loan elsewhere.Once I have added up the total cost I then look at what I am moving into and whether the savings/benefits of the new lender going to cover or make it worthwhile to change over. (I hope this makes sense)Just in case I get any unsual repsonses from other people because I work for the bank in question it is important you know that this is the advice I would give anyone I know irrespective of the financial institution they are with.
It always pays to do your sums first because you may not always be better off at the end of it.
I hope this helps.
Kind Regards
Verity [
]PS if you are concerned about the payout figure of your loan you can call Westpac and they can give you an indicitive payout figure immediately and the staff are also able to assist you with costing what you want to do, if you want to do it with Westapc.
Mobilemortgage – thanks for your comments.
Verity – Great information there. One thing, I’ve just been to the westpac website and tried to find more information on the LOC. This is what I found:
Equity Access Loan Equity Access Loan allows you to access the equity you already have in your property to make other investments.
0.4%p.a. off standard variable rate ($150,000 – $249,000)*
0.5%p.a. off standard variable rate ($250,000 – $499,999)*
0.6%p.a. off standard variable rate ($500,000 and above)*
No loan establishment fee – save $600
No loan maintenance fee – save $120 a year
No Top Up fee – save $400 for each Top UpOne more question – can you setup multiple accounts under the single LOC ? I know St George, Citibank, Gateway CU can do this.
Regards,
ElvisHi Elvis,
Depends on what you are seeking to achieve by having multiple accounts under the one LOC.
Do you want the ability to change limits between LOC’s etc??
Westpac have a product that you can have up to two LOC’s and you can change limits between the two but you need to have a particular home or investment loan in order to do so. The reason I am not stating the particular product is because I don’t want to appear to be touting for anyone in particular here as I am unsure if appropriate.
I am happy to help you with Westpac’s product info as that is what I know best but in order to do that would need to understand exactly what you are trying to acheive.
Regards
Verity
PS Verity is an investor that just happens to work for a bank always happy to answer questions relating to the bank’s products and what you can do with them and sometimes point people in the right direction to resolve issues but here I am investor first, bank person second [:p]
]You must be logged in to reply to this topic. If you don't have an account, you can register here.
