private health Insurance payment in advance before refinance

Discussion in 'Loans & Mortgage Brokers' started by Crafter2003, 19th Jan, 2021.

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  1. Crafter2003

    Crafter2003 New Member

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    We are going to refinance our PPOR and to buy a new property soon. We are going to pay for private health insurance in advance for 6mnth or a year to get a discount. Will our payment in advance effect our refinance and buying a new property, and would it be better for us to go for monthly payment? thank you for advice.
     
    Crafter2003, 19th Jan, 2021
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  2. Lindsay_W

    Lindsay_W Well-Known Member

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    Hard to answer accurately without know your full financial position.
    Either way it's an ongoing expense and may impact borrowing capacity as it will be listed as, an expense.
    Would the money be better used towards the deposit and costs of the next property purchase or do you not need it?
    Suggest using a broker who can work it out for you BEFORE you go applying
     
    Lindsay_W, 19th Jan, 2021
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  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Lets assume its 4%. Premium is $2K. So saving is $40 per $1k premium for 1 year. The savings are nothing significant. And next year you must repeat and so on. Its a deferred increase at best.
     
    Paul@PAS, 19th Jan, 2021
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