Loan for unit under 40sqm

Discussion in 'Loans & Mortgage Brokers' started by Moosh23, 20th Jul, 2021.

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  1. Moosh23

    Moosh23 Member

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    Hi,

    I own IP which is a 36sqm one bedroom unit. Currently have an investment loan with Comm bank paying 3.31% interest with a P & I loan. Due to the size of the unit a number of banks won’t refinance.

    I have $220,000 equity in the unit. I’m looking to use this for another IP.

    I just purchased another place for our home with ANZ (partner works for them) so we got a good deal. They offered to refinance my IP at 3%.

    Any suggestions with another bank to try and get a better rate based on the size of the unit?

    Thanks for your suggestions in advance.

    regards,

    M
     
  2. skater

    skater Well-Known Member

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    You'd be best to speak to the Mortgage brokers, however a refi @ 3% is better than what you've currently got.
     
  3. The Y-man

    The Y-man Moderator Staff Member

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    Is that with cross-coll?

    The Y-man
     
  4. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Few lenders will do 35sqm plus units (most at max 80% LVR, namely, Suncorp, TMB, Gateway, etc). CBA however is superior in this space in terms of accepting the security.

    What is the location or postcode as this will be important?
     
  5. Moosh23

    Moosh23 Member

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    No not cross Coll it would be seperate.
     
  6. Moosh23

    Moosh23 Member

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    thanks for your advice. Unit is in Cronulla - post code 2230. My broker suggested Comm bank were best in this space. Just thought to check what else is out there.
     
  7. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Your Broker is correct - CBA are the best in this space. Cronulla is fine so you are not limited by location.

    If you are looking purely at rate then you have options however CBA have the most robust lending policy out of the above lenders so even if other lenders are offering slightly better rates - my preference would be to have my loans with CBA.
     
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  8. Moosh23

    Moosh23 Member

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    Hi Sharon,

    Thanks for the advice. Appreciate it. I might try anc call CBA to negotiate.

    Cheers
     
  9. Lindsay_W

    Lindsay_W Well-Known Member

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    I'd rather pay a slightly higher rate with a lender that will allow me to use the full $220K cash out for further investing
    Trust your broker.
     
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  10. skater

    skater Well-Known Member

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    Yes, interest rate isn't everything.
     
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  11. MC1

    MC1 Well-Known Member

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    You don't need a broker by the sounds of it
     
  12. Moosh23

    Moosh23 Member

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    Thanks for everyone’s feedback.

    CBA can’t go any lower for a P @ I loan but offered a fixed rate at 2.1% for one year or can do longer . The only issue is I can’t touch equity for a year and then will refinance after that as rate goes to 3.85%.

    Anything else to look out for in regards to fixing a loan?
     
  13. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Cba and Suncorp is probably your best choice as noted by a few people, from memory I think ANZ only 60% LVR.
     
    Last edited: 21st Jul, 2021
  14. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Why won't you be able to touch the equity for another year ? You can do another loan for equity draw out.
     
  15. Moosh23

    Moosh23 Member

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    The customer service rep said that you can’t on a CBA fixed rate. I have 2 seperate loans - one will be larger sum that I will fix for 1 year and smaller sum I’ll leave P & I.

    Perhaps it was just the person I was talking to. Just conscious as I want to get the equity out to buy another IP.
     
  16. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    You can draw another loan, being a third split.
     
    Last edited: 21st Jul, 2021
  17. Lindsay_W

    Lindsay_W Well-Known Member

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    This is why you need a broker - Bank staff don't even know their own products.