I'm wondering if any of the helpful brokers can help explain the fees that the NAB would charge on a refinance..
The house is in Tassie and my sister-in-law wants to consolidate some other debts..
The current loan is $230,000 the new valuation is $280,000 and they want a 93% lend..
How much are they likely to end up with the bank fees and other little charges..
Any help is appreciated.
Greg
Ps After seeing the non-banks put up their rates they are hell bent on using NAB, so while I can appreciate there may be better options, I would really like to know what they can expect when dealing with the NAB.Hi Greg
I assume that the existing loan is with NAB hence the request to stay put.
If this is the case then the Bank may want to charge an application fee circa $600 to cover their valuation, application and in house legals. This could be a problem in it own right as NAB use their own in house valuers for refinance work and i bet my bottom dollar they will not agree with your sisters in laws valuation.
Secondly the question of whether they will consolidate over a 90% LVR especially given the likely hood the valuation could come in lower.
Other costs would merely be the upstamping in the mortgage duty if applicable and the Banks search costs and disbursements.
Mortgage Insurance and NAB use Gemworth. This can be capitalised to the loan but the premium is a little higher than other lenders.
Let us know how she goes. Good luck.
Richard Taylor | Australia's leading private lender
Thanks Richard, some good info in that post..
You are right they are currently with the NAB and that is why they want to refinance and stay with them (Better the devil you know, I guess).
I am still a little unsure of how much money they will end up with to pay out the other debts.. I understand that there is a cost of approx $600 and there is no stamp duty on mortgages in Tassie now.
So that leaves the LMI cost – any idea of how much that would be? Does it make a difference if it is capaitalised or not?
Is that all we need to consider when looking at how much money they will have available to pay out the credit cards etc?
Can someone give me an approx figure of how much there will be after all the fees and expenses?
Much appreciated,
GregGreg
Based on a 93% LVR they are probably looking at a premium of approximately 1.45% of the total loan amount i.e $4050.
This can be capitalised to the loan balance.
Richard Taylor | Australia's leading private lender
Hi Greg,
Regardless of what lender they are currently with, there is a lot to be said for staying put and or renegotiating.
For example, staying with their current lender, will save them early loan repayment fees (all have some now on their current loan ranges) loan discharge fees etc etc. A good lender/banker (maybe even broker!) should be able to negotiate a product switch charge even for a 'new loan'. The other advantage of this is that you/they may be eligible then for any current specials, saving more. as a sidepoint, I would want a loan interest rate to be 20 basis points less than my current one to make me consider refinancing a loan. I also believe a relationship with ANY lender (NAB, ANZ, WESTPAC, or dare I say even CBA!!!) that is a good one is worth a few bucks surely.
So in ansewr to your question, around $300 is all I would have thought, plus any LMi where applicable. It would be remiss of me not to point out tht according to my sources, NAB use PMI as their mortgage insurer, not Genworth as suggested above. That said, many banks (inc NAB) have a special arrangement for automatically accepting an application within 90 or 95 % LVR regardless. Something to bear in mind.All the best.
Thanks for all the help..
They think it is the refinance is a magic bullet that is going to cure all of their problems.
I just wanted to get an idea of how much money they could get (depending on valuation) to try and give them a balanced view of how it will look. They hadn't factored in all the fees and as such thought they could pay out more cards than they thought..
I suggest they renegotiate some debt with other lenders also..
Cheers,
Greg
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