Refinance and loan splits

Discussion in 'Loans & Mortgage Brokers' started by propertyhut, 26th Apr, 2019.

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  1. propertyhut

    propertyhut Well-Known Member

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    Hi All,

    Back again. so have to refinance to purchase first IP and almost finalised the place as well.
    current prop purchased 1.38 million 2016
    loan amount 980k
    630k or so in offset.

    did get 2-3 bank valuations done and 3 different ones have come back 1.45 million (ANZ), 1.55 million (CBA) and 1.6 million (NAB)

    our salaries are 125k plus super and 110k plus super in early thirties both of us.

    broker is suggesting to go with NAB.
    draw a new loan of 1.28 million
    have them split say 980k - keep our offset funds across this loan amount
    have the equity release in other loan amount 300k -

    then we use the equity available or just released for 300k. we use 178k or so to finance our first IP around 700k... progress with that.


    then if there is still serviceability and possible look to buy IP 2 - upto 500k or so later down the track.

    now the interest rate is 3.78% with NAB - variable - principal and interest only.
    my quick questions is this a good rate - can we via our broker ask for a better rate... can this be more lesser??
     
    propertyhut, 26th Apr, 2019
    #1
  2. propertyhut

    propertyhut Well-Known Member

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    propertyhut, 26th Apr, 2019
    #2
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    fees look a bit out of whack, by an order if magnitude.

    Seeing you have some non deductible debt left, everything else being equal and you assuming you dont need the extra 80 k from the NAB generous val, id go CBA every day of the week and implement an active debt recycle strategy to kill off that little bit of non ded debt

    Rate should be your last focus with the resources you appear to have - just sayin

    ta
    rolf
     
    Rolf Latham, 26th Apr, 2019
    #3
    KayTea, Property Twins and Terry_w like this.
  4. Terry_w

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

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    What does this consist of. $350 or so is the norm
     
    Terry_w, 26th Apr, 2019
    #4
  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    yes
     
    Jamie Moore, 27th Apr, 2019
    #5
  6. propertyhut

    propertyhut Well-Known Member

    Joined:
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    Sydney
    1)
    rolf - what do you mean about active debt recycle strategy to kill off that little bit on non bad debt. you are referring to rough 380k or still owing on home loan.
    how can that be done during refinancing? I am not sure and if you can kindly explain please.

    2) so the refinance fees seem too high right. I should question and understand that component a bit more right.

    thank you.
     
    propertyhut, 28th Apr, 2019
    #6
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    On the DR side, have a chat to your accountant and a competent planner in the area of active debt recycling.

    If it suits your family risk profile, it may pay off that home loan bit much faster than just paying it down with traditional means , while also adding and diversifying into various equities.

    Our business is specialist not in providing DR advice per se ( thats financial and tax advice stuff) but the best business lending structures to allow that external advice to be best use DR strategies.

    Loans aint loans.

    That refinance cost quoted I suspect is a system boo boo, unless you have long term fixed rates on existing

    ta
    rolf
     
    Rolf Latham, 28th Apr, 2019
    #7
  8. sumterrence

    sumterrence Well-Known Member

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    3.78% var for OO p&i is a pretty good rate.
     
    sumterrence, 29th Apr, 2019
    #8
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