Finance Recommendation

Discussion in 'Property Finance' started by Alistair George, 25th Oct, 2018.

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Option 1, 2 or 3

  1. 1

    100.0%
  2. 2

    0 vote(s)
    0.0%
  3. 3

    0 vote(s)
    0.0%
  1. Alistair George

    Alistair George New Member

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    Location:
    Perth
    Hey everyone how are you.

    Currently getting finance, having been reading this forum for a fair while i thought i would post what I've been offered through my mortgage broker to see what you guys think. Options 1, 2 and 3. Im thinking 2 will be best as i can use the offset function and at a 4% variable rate is quite reasonable. However if i dont have much in the offset account it would seem simple to just go option 1 with no account fees. I dont plan to hang on this apartment for to long. Offset would be about $20,000. Any recommendations would be great thanks.
     

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  2. Property Twins

    Property Twins Mortgage Brokers - Australia Wide Business Plus Member

    Joined:
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    Location:
    Sydney, Australia
    • What is the Loan to Value Ratio?
    • Why ANZ?
    • What is your long term goal with this property?
    • As you call out 'I don't plan to hang on this apartment for too long' - what do you exactly mean? How long? Do you intend to make this an investment property down the track?
    • Do you intend to purchase further Investment Properties or invest in other asset classes down the track?
    Rate or package fees are one of the factors to consider, but not the only factors - what is your big picture focus / goal?
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    fridge 4


    ta
    rolf
     
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Start by focusing on why one specific lender over another, then worry about product.

    I can't say that I recommend ANZ much, simply because they're just average all round, not particularly outstanding at anything. Plenty of lenders with cheaper rates, better serviceability. Many have better policies.

    Offset accounts can be useful, but they come at a price and there's lenders with more competitive deals. Fixed rates also have their place but they limit flexibility, perhaps consider a split loan to give you the best of both fixed and variable.

    This is just some basic thoughts. There's no context to the question to really make a decent recommendation based on actual needs, goals and circumstances.
     
  5. Alistair George

    Alistair George New Member

    Joined:
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    Location:
    Perth
    LVR is 90% so my parents will be going guarantor.
    ANZ is just what my mortgage broker has recommended in this market.
    Long term i want to get into it but as this is a purchase i made with an ex partner and i am now buying her out i will be tied up for a while.
    It is currently an investment property has been rented out negative geared for the past 2 years however once markets increase in years to come i would like to offload it and upgrade.
    and yes down the track im definitely interested in the property market which is why i purchased this at 19.
    Main goal is to just keep paying it off until i can sell at purchase price or a small profit. thanks
     
  6. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Location:
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    Make sense - they’re prob the best lenders when it comes to guarantor loans.

    Their pricing isn’t too bad - their fixed loans are reasonable at the moment if you’re considering a variable/fixed combo.

    They’re usually ok with future equity releases and post settlement service is ok. They’re retention pricing is good.

    I don’t use them a whole lot these days but they’re not too bad IMO - especially for guarantor deals.

    Cheers

    Jamie
     
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    while your goal MAY be to tirn it over in 2 years, whats the chance it will stay a PPOR for say 5 ?

    ta
    rolf
     
  8. Alistair George

    Alistair George New Member

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    Perth
    Rolf id be happy for it to stay as a PPOR for 5 but id rather get rid of it sooner rather than later. Thanks
     
  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
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    in that case

    My very general advice would be to ...........

    go CBA

    split the guarantor portion off, secured over both properties

    and have the 80 % secured only to yours

    have the 80 % lend as IO. but might be exxy, so PI is ok too

    have the guaranteed loan split as PI and kill that as fast as you reasonably can to release the guarantee.

    Thats the best over all consideration for all stake holders usually, but not always.

    ta
    rolf