Calling all the brokers

Discussion in 'Loans & Mortgage Brokers' started by Noobieboy, 8th Mar, 2018.

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  1. Noobieboy

    Noobieboy Well-Known Member

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    Hi!

    My mates offer on a property has been just accepted. He has fifnance pre-approval. Was about to sign on the dotted line when I said “Wait! I know Gods of investing”. Can any brokers get him a better deal? If so let me know and I’ll let him get in touch.

    Details:

    Property:$385K needs 80% finance
    Location: SEQ
    Type: House

    Wants: 5 year fixed rate. Stability. Though I think variable is better as my understanding it can be fixed anyway/ anytime.

    Rate offered: 4.49% (comparison 4.56%).

    Do you guys think he can do better? I tried to suggest variable instead of fixed. Do you think it’s a bad suggestion.
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    how long is a piece of string ?

    Impossible to provide any advice really

    its like asking

    whats the price of a new car ?

    ta
    rolf
     
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  3. Noobieboy

    Noobieboy Well-Known Member

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    What else is needed. Forgot to say it’s and investment. Happy to let him get in touch if there is a possibility of lower rate. The variable rate is 3.99%
     
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Agree with Rolf - it’s difficult to provide any meaningful advice based on the limited info.

    Does he have any other debt? If not - then fixing the entire loan may not be a good move. You usually can’t offset/make extra repayments into a fixed loan so it’s normally good to maintain a level of flexibility.

    5 years is quite a long time too - if he sells/refinances the break costs could be quite high. What are his longer term plans with this property? Will he need to release equity at some point?

    Cheers

    Jamie
     
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  5. Noobieboy

    Noobieboy Well-Known Member

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    Thanks guys. I’ll ask him to come on site and give people a ring. Don’t have enough details for the discussion.
     
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    so funny, yet true!
     
  7. jprops

    jprops Well-Known Member

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    Why don't you have him call your broker?
     
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  8. Noobieboy

    Noobieboy Well-Known Member

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    I don’t have one :D. I don’t even own any property. Soon though. Soon.
     
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  9. jprops

    jprops Well-Known Member

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    If you plan to buy soon, you're best to start speaking to a few brokers now. Find one you like.