I know that there are a few topics on break out costs from a fixed rate to a variable rate home loan.
I've found out that my break out costs will be around $19K if I decide to change from my fixed 7.3% to go variable.
now my question is, i dont have the $19K in cash……does that mean even if do want to go ahead and pay that difference, can the $19K be added into my new loan amount? Or will I actually have to have the cash to pay for that?
Ps………..its my residence that im refinancing and not an IP.
Can be added to the loan if your circumstances allow – LVR and maybe income checks.
$19k sounds a lot and is, but one of my friends had a $90,000 exit fee on a fixed loan!
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
kitwalker wrote:now my question is, i dont have the $19K in cash……does that mean even if do want to go ahead and pay that difference, can the $19K be added into my new loan amount? Or will I actually have to have the cash to pay for that?I was told by my financier that I would need to pay the money upfront, but then she made a quick passing comment with words to the effect that that could be negotiated… so I think it's possible to have it added onto your loan, but you may need to speak to someone with some authority to arrange it. I would've thought the financiers would be happy to add it on, as they will be getting more interest by having the loan increased!
Cheers,
Dave.
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