Hi, I'm just getting into this propery investing thing so could do with a bit of advice please.
I am looking at refinancing my home loan and in the next 6-12 months buying my first IP. Has anyone had any experience with Ratebusters? Their rates look very competitive, but are they good to deal with?Also, I currently have 40% equity in my PPOR, would I be best to take out the loan for 80% of the value of the home and leave the equity in an offset account ready to use for a deposit and costs on an IP?
Guess it is horses for courses
A low rate is not the most important factor when mapping out a investment path and i think if it you look at investors with decent size portfolios very few of them use no frills type lenders.
Richard Taylor | Australia's leading private lender
Thanks Richard. I understand that a low rate is not the most important factor, but if everything else stacks up why would'nt you go with the cheaper option?
Nivonne wrote:Thanks Richard. I understand that a low rate is not the most important factor, but if everything else stacks up why would'nt you go with the cheaper option?
Well you would be silly not to.
But generally everything else doesn't stack up and I am positive that you are trading something off for this low rate.
I find that loans can come with low rate, good service and flexibility.
Pick two of these that are most important to you because you can never get all three!!
Some choose to save on the initial lower rate to save a few dollars and not looking to the longer term saving when using features of the loan to their advantage.
These sorts of loans are generally high in exit fees and are all of these loans are mortgage insured which may restrict future borrowering.
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
Hello
I have used RateBusters in the past for 3 different loans. They were extremely good to deal with and helpful. There products are great with the free features such as the offset account and low rate etc. The catch is definitely the exit fees. I'm looking to refinance one of the loans now and looking at $1500-$2000 in exit fees (and I have had the loan for just over 2 years). For this reason I won't be using them in the future as I plan to refinance to release equity after renos etc for deposits on more properties.
Lisa
Thanks Lisa, that is good to know. There just seems to be so much to consider it can get confusing.
Good luck with you next financiers.
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