Hi just wondering how most people go about refinancing? Use a broker or just go into a bank? Mortgage house are offering 3.9% on investment loan. Westpac are currently slugging us with 4.6%. Any feedback appreciated!
Hi just wondering how most people go about refinancing? Use a broker or just go into a bank? Mortgage house are offering 3.9% on investment loan. Westpac are currently slugging us with 4.6%. Any feedback appreciated!
Simple advice is to not be sucked in simply by the rate on offer. You are buying a whole package and there are many variables to consider.
You might be better off in the long run sticking with the 4.6% you are currently paying if the other deal has some unfavourable clauses.
The bottom line is how much will it cost you over the life of the loan, how much will it cost you if your circumstances change?
Read every word, don't sign unless you understand every word.
It's bloody minefield.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
Hi just wondering how most people go about refinancing? Use a broker or just go into a bank? Mortgage house are offering 3.9% on investment loan. Westpac are currently slugging us with 4.6%. Any feedback appreciated!
Whatever you choose to do, don't make multiple online applications, it will damage your credit score, and most lenders credit score. That means they won't even look at your application if you have too many recent enquiries - IE three or more. It's a lazy way of assessing loans.
If you have already made that mistake - one bank that doesn't credit score is Macquarie Bank, although they do check your credit file.
Take risks - if you win you will become wealthy, if you lose you will become wise
Hi just wondering how most people go about refinancing? Use a broker or just go into a bank? Mortgage house are offering 3.9% on investment loan. Westpac are currently slugging us with 4.6%. Any feedback appreciated!
Adelaide bank were also pretty pathetic when we wanted to refinance... not much loyalty compared to the packages being offered by others.
Rufus had good advice, even if it does not make you look desperate and impact your ability to borrow, every application you start (even online) triggers a whole bunch of phone calls from the team... I filled out some details online as a general inquiry and had phone calls from the guys there for weeks. ... there are many, many good comparison websites, although some are clearly "select" in the range of lenders they compare with.
If a comparison website asks for any contact details prior to doing the search, find another comparison site.
We used Canstar, but steered away from those who magically only threw up 4 or 5 lenders on our searches.
Have to say, 3.9 is not a bad IP loan, assuming there are no ongoing costs... I notice yours has a (small) $10 monthly fee, and a $200 settlement fee ... quite common, although you can find loans without that monthly fee also.
If your car breaks down you can buy a self help book and check on YouTube to see how others have fixed the fault, or you can go to a mechanic and get it fixed properly.
Take risks - if you win you will become wealthy, if you lose you will become wise
If your car breaks down you can buy a self help book and check on YouTube to see how others have fixed the fault, or you can go to a mechanic and get it fixed properly.
Just make sure you use a mechanic who has the broadest range of parts and does not limit your choice, or get incentives by selecting a particular manufacturer, or, equally important, not offering a particular manufacturer, because they don't off the "right" incentive.
We talked to the Aussie Home loans broker, who told us the frequency that CBA products were sold through their company... now I wonder why that would be
Just make sure you use a mechanic who has the broadest range of parts and does not limit your choice, or get incentives by selecting a particular manufacturer, or, equally important, not offering a particular manufacturer, because they don't off the "right" incentive.
We talked to the Aussie Home loans broker, who told us the frequency that CBA products were sold through their company... now I wonder why that would be
The various banks all offer almost identical commission structures. I haven't heard of any broker choosing the commission rather than a suitable product, but I'm sure many will argue otherwise.
There have been studies done showing that the banks who got the most work from brokers aren't the ones offering the highest commission, but they are prepared for ASIC and aren't released to the media.
Some of the major considerations are:-
Interest rate Features such as an offset account, construction, variable, fixed etc Processing speed of the bank (important when purchasing) Requirements of the bank to gain approval matching what the information that a borrower can provide.
Is it for construction, or purchasing existing, or refinancing credit history Is FHOG applicable Unit or house New or old LVR LMI cost Ongoing fees Borrowers preference Lenders policy any other relevant factors pertaining to that particular request.
No one in the industry has a very high opinion of Aussie Home loans, they are at the bottom of the barrel, but the CBA write a large % of home loans in Australia, Aussie would refer a high percentage of applications to the CBA regardless of any internal directions. Don't quote me but I'm sure the CBA write over 20% of all home loan deals.
Brokers are expected to provide the most suitable home loan, not the cheapest, and there are good reasons for that. The cheapest may not be a suitable product, or it may be unavailable for the purpose required, or there may be other factors involved peculiar to that transaction.
First time buyers look for the cheapest rate, experienced buyers look for a good rate but they also want features that save them time and money, and they are usually more prepared to pay higher fees to achieve that. Everyone's preference is different.
I don't think a broker is essential for a 'model' borrower.
However, if there's anything slightly out of the white picket fence then they're probably useful... Dodgy credit history. Deposit issues. Multiple loans trying to squeeze every last drop of credit out of the system. A bad hair cut. Not employed for long. Contractor. Self employed. The list is endless.
Are there lenders that don't deal with brokers at all?
They appear to be very well paid and I'm not sure why lenders support that?
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