I went to my bak with which I have the loan for the IP (ANZ) to get an extra $12000 for a reno I am doing.,….They said yest of course you can have this, but if you:
1. pay it out quicker than the prescribed period
2. refinance again or payout the loan due to selling the property or upgrading etc….
then you incur a $700 FEE !This is rediculous crap. That 5% of the $12000 I wish to loan……particularly as I wish to upgrade the property tfor sale over the next few years…..This is very inflexible.. Its an ANZ Breakfree package….and its a rip off…
Any one got any ideas….We of course dont want to use our own money … do we see if we can talk to a broker to see what our options are… I have never used a broker… dont they get comission for their advice and services they recommend. How then do you know if you are getting the best deal for you?
Will they do an inspection (INTERNAL) of the property to accertain its value? Ie. could li finance the reno myself and then get it refinanced through a broker to get the money I spent on the reno back in my pocket out of a new loan?[inlove][withstupid]
Snowflake
Yes, the banks are all introducing DEFs now. Westpac is the latest. I think falling loan rates means they have to try and prevent customers from leaving.
Terryw
Discover Home Loans
Parramatta
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Firstly to answer your question regarding brokers. Yes, we are paid a commission by the lender that we put the loan through. I personally dont agree with brokers charging brokerage fees on top of the commission that they receive however there is no regulation that prevents brokers from charging a brokerage fee so i would recommend that you use a broker that:
1. Doesnt charge a brokerage fee
2. That has had a MINIMUM OF 3 YEARS experience in mortgage lending (unfortunately some dont have a lot of experience)
3. That is accredited with a large panel of lenders including all the major banks and other leading mortgage providers.If you do that you will have a selection of lenders to choose from and they can do product comparisons to show you what each particular lender would cost you including ongoing fees etc.
As for the DEF – most lenders do have them and $700 is actually one of the cheaper of them. There are some lenders that charge 3% DEF in the first year and then it scales down from there. Bankwest dont have a DEF at all at the moment so if you are interested in a product that is cheap to get out of it may be worth considering them. They also have competitive interest rates/fees etc however as mentioned above I would recommend using a broker to compare the different lenders and if you use a broker that doesnt charge a brokerage fee then the exercise wont cost you a cent.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]
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