Advice on Re-Financing? Please

Hi all,

I would hugely appreciate some advice from some of the great minds on here! I currently have 4 properties that are all IP's and are financed through different lenders.

I read through some posts about CBA stopping re-fi's of investment loans so this is probably the worst time to be looking at re-financing but just wanted some general advice from any of you awesome brokers

One of the properties I just moved out of and I'm paying P&I at 4.85% with Bankwest. Is this really high? And BankWest being part of CBA would it be easy enough to convert back to interest only?

- 2nd IP = CBA at 4.61%
- 3rd IP = AMP at 4.38%.
- 4th IP = I have a 50:50 share and is with BankWest again at 4.87%

My main objective is to reduce the amount I'm negatively geared, unfortunately I'm not in a position to sell any straight away as there are leases in place and the market is subdued anyway.

I was just wondering if anyone thinks it would be beneficial to re-finance all loans to one lender and get a better deal? Or are banks not keen on looking at investment loans at the moment? The LVR on most these would be anywhere between 90 - 95%. Again I have a feeling this will work against me too

 

Depending on servicing you may find it's difficult to refi all of them at once to one lender.

Whether it's wise will depend a lot on the value of each loan but generally speaking I'd probably look to split them between a couple unless they're super low value.

You could definitely reduce those rates, and also stretch out your IO terms at the same time.

 

Hard to say what's possible without knowing the finer details of your situation.

As mentioned above - it's not easy to refi everything to one lender due to serviceability but a multi lender approach may work.

Should be able to do better on that Bankwest loan - that's assuming the LVR is sub 80% otherwise the costs of LMI might not justify the switch.

Cheers

Jamie

 

May not need to refi to just lower the rates - best to call the lenders and let them know you'll refi if they don't drop the rate.

Re BankWest loan, if you want to move to I/O - check out your refi options with other lenders to get another 5 years here.

 

Ask your broker to put in a pricing request with Bankwest, they'll get more traction than if you go straight to the bank.

Have your broker submit a transfer loan request (the name of the form) to extend your interest only period.

It's doubtful you'll be ahead if you move banks due to your LVR (LMI could cost thousands which will outweigh any $$$ saved on repayments) but ask your broker to have a few valuations performed on your properties. You may get lucky and jag a good val with one or more of them in which case you could possibly refi to a better rate without paying LMI.

 

I just re-read this and realise how high your LVR is - you'll find that rates are almost always higher when LVR is in the 90's and as others have said, paying LMI again on a refi will outweigh any rate saving.

Seeing as refinancing is unlikely, you could possibly look at fixing at a lower rate with the same lenders - some of the 2 yr rates are pretty good at the moment.

 

Thanks everyone! Yeah I didn't even consider the LMI implications for my high LVR's.. Looks like I will have to stick with the same banks for now but hopefully negotiate some better IO fixed rates.. Mainly my Bankwest one.

Again appreciate all your timely and helpful replies. Cheers