G’day,
Just a quick question about breaking our fixed loans to refinance at a lower interest rate.
Currently we have 4 properties that are fixed for another 18 months with a total mortgage value of $1.1 million. The variable rate available now through the same bank is approximately 1% lower then our fixed rate. With the possibility of another rate cut, I’m looking for a rough guide as to how much we might be expected to pay to break these fixed rates and refinance. Would it be worth breaking them for this lower rate… any help is much appreciated. Cheers
tuggerThe only person who is going to be able to calculate your break costs is the lender. Give them a quick call and they can calculate this instantly.
The compare this against the rate saving available – more often than not this will equal the break fee.
It can be possible to break the free if you move to another lender who will beat the variable rate on offer by the existing lender too, so there may be viable options available.
But first point of call is to call up the lender and find out exactly what the cost will be to exit the rate – then speak to a broker who can look at your options with that lender and others if necessary.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
G’day Corey,
Thanks for your response with that… Will get on to the bank tomorrow and hopefully have some luck. Cheers
TuggerWhich lender are you with Tugger?
How much are they going to sting you for those break costs?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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