Refinance PPOR to save on annual fees

Discussion in 'Loans & Mortgage Brokers' started by properlayer, 15th Dec, 2018.

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  1. properlayer

    properlayer New Member

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    Am interested in refinancing my PPOR loan, mainly to save on the annual fee.

    Currently with Westpac Premier Advantage IO. Loan Amount of 260k.

    Property value about 500k (probably less due to market downturn in Melb).

    Am self employed with income on the lower side. 2018 was 58k, but 2017 only 12k.

    Are there any easy to apply for loans for self employed (ie lo doc) anymore? Mainly looking for one with no annual fees or establishment fees, offset, and IO if possible.
     
  2. Terry_w

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

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    Will be hard as low docs are virtually non existent now.
    Why not see if you can change products with westpac
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    dumb but possibly relevant question

    what rate are you currently on ?

    ta

    rolf
     
  4. properlayer

    properlayer New Member

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    TBH I don't know. I think it is 4% something.

    The rate is not too much of an issue as I have about 240k in the offset.

    That's a good idea, thanks.
     
  5. Harper Lee

    Harper Lee Member

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    Maybe ask Westpac if they can product switch you to their basic option first. This would be the lowest cost option.

    Refinancing, there are some basic loans if you don't need the offset. They will cost around $800 which will include settlement fee, discharge fee, title office fees and maybe more.

    If you're 2 years self employed and have your 2018 financials, you can go to a lender with a 1 year self employed income policy and if you don't have too many other debts, $58k could be enough to get that across the line.
     
    Last edited by a moderator: 16th Dec, 2018
  6. jazzsidana

    jazzsidana Well-Known Member

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    Try and push westpac to waive off the fee. I have done that with CBA in past!.

    And once income grows bit more, refinance and release the equity at same time...
     
  7. properlayer

    properlayer New Member

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    I've just come across Qudos bank.

    Low Cost Home Loan - Qudos Bank

    How are they for self-employed?

    I'm a bit miffed with Westpac really, and almost want to move out of spite.
     
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    One either has the verifiable income, or not with the recent APRA changes.

    Qudos is the old Qantas CU, and I have seen them do loans that were kind to the borrowers income and liability circumstances. That was pre apra days, and for existing clients.

    Depending on your income make up, you may qualify at lender X.

    A practical way to approach might be to see what lenders will do what specifically to your personal and financial circumstances, then worry about the fees and charges will or wont work.

    ta
    rolf
     
  9. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Hi there

    First thing to do is is suss out what options are available with Westpac.

    1. Ask them about your options of switching to a product without an annual fee

    2. Tell them that you're financing to lender xyz at rate x.xx% and you'd like to give them the chance to match before you jump ship

    Cheers

    Jamie
     
  10. Brady

    Brady Well-Known Member

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    From what I see you don't care too much about rate as fully offset.... good because 4.xx% looks decent for IO.
    But you want to have an offset facility, but no fees - don't think you're going to find this anywhere fast.
    Especially whilst you're on low income
     
  11. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Are we talking about the $395 annual fee ? Its various "benefits" need to be assessed:
    • Discounts on a range of Westpac standard variable rate and Westpac fixed rate home loans eg 0.4% to 0.9% discount on variable rate loans and 0.2% discount on fixed rate loans (new loans only ?)
    • For any packaged home loan, pay no loan maintenance fee, "top up / loan increase" fee, portability fee or switching fee (excluding switches to a non-package loan)
    • Pay no monthly service fee on your Westpac Choice account, regardless of total monthly deposit
    • Pay no annual card fee on the card you select from a range of Westpac credit cards (some include free travel insurance).
    • Discounts on selected insurance product
    • Offset - No charge. Unlimited number (one per loan limit applies)
    • Fee savings :
      • No establishment fee - save $600
      • No ongoing loan maintenance fees - save $96 - $120
      • No "top up / loan increase" fees to increase your loan limit - save $400
        (not available on fixed rate loans)
      • No portability fee if you move house - security criteria apply - save $300
      • No switching fee - save $300
     
  12. Terry_w

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

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    If you refinanced and the account was fully offset and there was no annual fee the lender woudn't make any money!
     
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