[2way]Sorry but I wanted to get someone’s attention!!!! I’m currently paying 8.15% on 2 IP that are on 5yr IO loans. They convert to P+I in just over a year. If I break them, what are the best current rates available for both IO and P+I?
Many thanks for your thoughts. Sorry about the headline decoy but I’m sure someone could use it to get the attention of someone for a wrap or flip when advertising????Most fully featured loans are around the 6.5% mark. These are P&I or IO.
There are some budget style loans available for less.
Hard to advise you on what to do without really knowing enough to get a feel for your situation and goals.
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.
Damn, Gatsby, you tease. I wanted to read the foot food story [hannibal] You’ll get no help from me in this topic!! (That’s because I have no clue as to how to answer it :o))
Good ploy in attention-getting [laughing]
kay henry
Pisces will be very disappointed that the subject header was just a ruse!
Oi, some-one ought to put their foot down over headings like this!
Thanks, Celivia. Someone finally says what I’ve been keeping on ice for so long.
I actualy left this thread after three days of reading the forum. And went to read it out of bordom.
So not sure how effective an attention seeking title it was?
Having said that i don’t think i can help you.
So i’m about as useless as the title, for further search references by members.
It’s not appropriate to use inappropriate titles, it should be descriptive and describe as best you can what you seek information on.
Dear MortgageHunter, many thanks for your reply and advice! Cheers! Dear Jaffasoft, don’t be so JaffaHARD! I think a touch of humour in something that is as serious as investing should not be seen as mutually exclusive. It may even prove to be beneficial to some? If you read this thread “out of boredom” then my only wish would have been to cheer you up? Anyway I appreciate your suggestions. Cheers!
I might have some useful input cuz I just went to see a Mortgage Broker with an extensive list of fund providers.
For new loans above $250K (refinance in your case) St George bank has one of the best rates on a professional package for 6.37%. This is a negotiated rate for those borrowing above 250K remember so won’t be advertised. Apparently, the big 4 won’t even offer to negotiate if you dun borrow in excess of 500k to over 1 mill.
Dear Enlad,
Thanks for the reply. I’ve been stuck for nearly 4 years on 2 IO loans (after which they convert to P+I). One property (the first one I purchased secures both properties and the second property secures itself (these terms used are where I get lost!!). I want to break to the lowest rates possible and I’m currently with Adelaide bank. If I break now my pay out costs are $2,500 per property plus another admin penalty to the bank of around $550. The broker (United Homeloans) also wants to charge me $150 to them! It’s not a lot but is that usual practice??
My strategy is to basically follow Steve’s +cashflow model in buying property although I’m on nearly $60k and pay quite a bit in tax.
Also, I don’t want to get stuck with one particular bank to the point where I hit their ceiling limit of comfortability and I can’t borrow anymore (if this problem exists).
Property 1 is worth $280k and I owe $120k.
Property 2 is worth $160k and I owe $128k.
I have no outstanding personal loans and live rent free. I hope I’ve given you enough data to go by to give you an outline of where I sit financially. Again, I wish to drop to the cheapest rates and keep expanding my property portfolio, preferably cash flow +.
Yours and the thoughts of others out there would be most welcome.
CheersHi Gatsby,
I’m not sure why you are paying 8.5% is this a fixed rate?Current situation: $248.000 @ 8.15% interest only = $1684 per month
Proposal: $248.000 @ 6.37% interest only = $1316 per month
This is a saving of $4416 per annum,(United Homeloans) also wants to charge me $150 to them!
It’s not a lot but is that usual practice??No this is definitely not usual practice,
Kind 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.
Many thanks MobilMortgage,
Yes, it is a fixed IO rate of 8.15%
Also, one question I forgot to post. With the equity I have, is it possible to borrow the full amount for a loan for an investment property? Any ideas as to what rate of interest this may attract? (both for a IO fixed or variable or either a P+I). Many thanks for the advice.
Any other suggestions by others would be most welcome!
Cheers,
Gatsby.Hi Gatsby,
I would suggest taking out equity from your current investment properties to fund 20% deposits on future 80/20 lending, By structuring you borrowings in this way you are in fact borrowing 100%, and not necessarily all with the one lender,
As for best interest rates, this will depend on a number of factors and each individuals specific circumstance.
Kind 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.
Apparently, the big 4 won’t even offer to negotiate if you dun borrow in excess of 500k to over 1 mill.
This is not the case. I have negotiated great rates on quite small loans with banks of the big four…
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.
At such high fixed rates, the exit fees for your current loan could be enornmous. Have your inquired what these will be? It may still be worth leaving.
I agree with Steven, it is better to get money release and use that as deposit for further property. Taking your values as given, this could give you an extra $104,000 to play with, enabling you borrow another $400,000 or so (providing you can service the debt).
Good current rates are around 6.45% for IO or PI
Terryw
Discover Home Loans
North Sydney
[email protected]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
Terry, Simon and Steve. Many thanks for you input and thoughts. I will definetely break with Adelaide bank to see what the best strategy is to follow the + cash flow model. Also I only have $10k in savings so best interest rates unfortunately will be affected as I will have to most likely borrow %100. Cheers.
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