Mortgage house refinance

Discussion in 'Property Finance' started by Davidbeaubois, 15th Sep, 2017.

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  1. Davidbeaubois

    Davidbeaubois New Member

    Joined:
    15th Sep, 2017
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    Location:
    Ingleburn
    Any opinions on mortgage house. Wanting to refinance my mortgage and the rate they offer is tempting.
    Problem is the confusion with their phone staff.
    First I had Kevin as my lender, I was shopping around so I took my time (2/3 )days in getting the identification and financial details to him.
    Kevin quit then I got Chris who was adamant that me shopping around was going to affect my credit rating? they then wanted my property valued, then in the same phone call this could be avoided by sending them a value if my land which I did. I got pre approved but then they wanted a property valuer to inspect again and I had to pay for it?
    The list goes on!. Is the 3.69% worth it?
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Hi there

    Possibly - possibly not.

    It's difficult to give any sort of descent response without knowing your immediate and longer term plans - the loan size and property value as well as your income/liability situation.

    Cheers

    Jamie
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Perth WA
    With the low rate lenders the process can be quite annoying. It's not uncommon to have to pay for a valuation, but it's often included in the application/establishment fee and charged at settlement rather than upfront.

    I guess by charging upfront they are not out of pocket if it comes in low.

    Chris was correct in that if you apply to lots of lenders it will affect your credit rating - this can cause an automatic decline with some lenders, depending what else is in your history.
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    I guess the fact that you are asking the questions suggests some doubt.

    MHA have more than one funder, I recall they are also a brokerage,but tend to focus on their own branded product due to price.

    They have been around a long time so must be doing something right

    Do you know who the end funder is, because that may determine your call

    Multiple applications may affect your file depending on lvr etc

    ta
    rolf
     
  5. Robjj

    Robjj Member

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    Melbourne
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    if rate is the core concern, MHA is a good option...........

    What are you looking for the product to do.

    obviously allow you to control the asset at the lowest REAL long term investment , but what else?

    ta
    rolf
     
  7. Robjj

    Robjj Member

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    Location:
    Melbourne
    Thanks Rolf, looking to refinance, release equity, split loans to fund deposit(s) for future IP's.
    Importantly this is my primary place of residence so interest rate is important given it is non deductible.
     
  8. wilso8948

    wilso8948 Well-Known Member

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    Interest rate on the equity release portion is though. Provided you’re using for investment purpose. Other things to consider.. valuations, borrowing capacity, serviceability etc. I’m no expert though like many on here.
     
  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    if its your PPOR and thats the main debt, then an active Debt recycle strategy supported by a global limit product like AMP may provide a vastly better outcome long term.

    Subject to volume, the rate wouldnt be a whole lot different.

    If you have a decent taxable income, and more than 250 k non deductible debt left its worth looking into. Modeled estimates show the end result to be similar to net rates of less than 3 %, and in some atypical cases closer to 2 %. One needs to have the risk profile too handle the equities market fluctuations though !

    There are other lenders whose products can be made to function similarly, im not sure about MHA's ABL funded product here.

    ta
    rolf
     
  10. Robjj

    Robjj Member

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    Location:
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    Thanks, sounds interesting i'll do some research