I have got a tempting offer with no "fine prints' ( at least I can't see it) from BankWest through a morgage broker for my home upgrade loan.
What do you guys think about this.
I have done my excelsheet calculation and I am sure that I will be able to pay this loan withing 3-1/2 yrs. What do you guys think about this?
Any suggestions?4.85% @ 3 years flexible morgage. No hidden cost!!
Date Created: Tuesday, June 20, 2009
Refinance Value: $ 0 Security Value: $ 920 000
Loan Value: $ 650 000 Property Usage: Owner Occupied
Total Lending Facility: $ 650 000 Security Details: Purchase
Loan Term: 30 Years First Home Buyer: No
Termination Period: 7 Years State: NSW
Loan to Valuation Ratio (LVR): 70.65%
Product Feature BankWest, Rate Tracker Ultra Home Loan
Special Product?
Offset Product 100%
Comparison Rate (AAPR) 5.25%
Initial Interest Rate 4.85%
Reverting Interest Rate 5.58%
Initial Rate Period 3 years
Total establishment fees $595
Ongoing costs $0.00
Ongoing cost period -N/A
Exit Fees $300
Early Repayment Fee N/a
Split Fees $0
Switching/loan variation fee $350.00 / $350.00
Repayment Type P&I
I/O
Additional repayments Yes
Cost per repayment $0
Minimum repayment N/a
Maximum repayment N/a
The Comparison Rate is 5.51% and not 5.25% and there is a $15 / month charge for the offset account.
The product is fine if you can put up with the Banks level of service and tight credit policies.
Couple of other products out there that are similar.
Richard Taylor | Australia's leading private lender
The initial rate is 4.85% for 3 years then reverting back to the full amount. You stated you can pay it off in 3.5 years so you get the discounted rate for the most of your loan term. One thing you should look out for is to see if there is any early termination fees. Most banks charge a fee if you pay off your home loan inside 3- 4 years.
Termination Period: 7 Years State: NSW
I am not sure what that means but could mean your minimum loan term is 7 years.The only other question is how do you pay off $650k plus interest in 3.5 years???
I wish i could pay off my home loan in 3.5 years.i think it is a great product – for the first 3 years only. Then you can easily change as the exit fees are minimal.
I would also get a longer term just in case. You can always pay it off quicker.
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
Is anyone aware that there is a Bank of China in Australia with low rates also!
Yes PE they have been in Oz for a while but have you ever tried to get a loan through them.
Makes Bank West look like a breeze.
Richard Taylor | Australia's leading private lender
To echo my sisters words. I will never take out a loan with bank west again. I think mainly because with her situation living out on a farm house that they have no branches and any communications was ridiculous.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
