Refinance to Liberty? Recommendations?

That's a question specific to your circumstances which you need to ask your broker.

 

Lets say you started with an 80% LVR, then over a few years the property went up and also you could put some cash towards paying it off ... so that the LVR was down below 60%

Would I be correct to assume that something along these lines would allow you to refinance comfortably and remove the main problem with Liberty?

 

Paying down debts will help. Its not so much the LVR being the issue... its just that other lenders will look at your debts, assume you are paying back all these loans at say 7.5% interest rates. Then they shade the rental income to say 80%.

With this in mind, you'll still fail the serviceability calculators of most if not all other lenders. If you can greatly increase the income side of the equation, that will help.

 

Depends on how much your income increases and how much debt you pay off. LVR isn't the problem.

There's no way to give people a straight answer to this without a very detailed understanding of their existing finances. There is no simple rule of thumb and the banks are constantly changing their rules.

 

Hi all,

Why Liberty is a dangerous option?

 

A year ago their rates were 4.4% for investors. By the end of the year they were 4.99%. Today they're 5.59% and we've been told within a week or two they'll be 5.74%.

Myself and others made the prediction of rising rates with Liberty over a year ago. Any broker that was around during the GFC should understand what the risks of using Liberty are.

Until they're got some competition in the investor space, I don't see them dropping rates. I don't see much competition on the horizon for them.

 

OK. Liberty is offering a borrowing power that non other lender offers, and because of this they charge higher interest rates and will keep raising them. Is this ok?
And Qudos? Are they similar to liberty? I never heard about them before

 

But is licking a fixed rate with Liberty ok, at least U are safe for few yrs

 

I'm on the brink (fingers crossed) of refinancing a couple of my loans from Liberty with one of the big 4. They served their purpose but their continuous jacking up of rates (which feels like every few weeks and refusal to discount them no matter what) has forced my hand.

To be honest I wasn't comfortable having a lender like them on my books. I knew what I was getting into so have only myself to blame.

 

What is Liberty IR now?

 

For me, 4.9%. Too high in this environment.

It was 4.25% a mere 5 months ago.

 

Do they deem you to be a 'professional investor' and is your LVR extremely low?

 

Yes they do..and believe it or not you get penalised for it at Liberty. LVR is in the 70s.

 

Liberty are generous with lending & know they have many by the nether regions, so they keep squeezing, but if the deal is good, then it can be worthwhile instead of missing a deal (maybe)

Qudos are nothing like Liberty, they are not at all similar at all, just because they offered a special a few times, does not make them Liberty, as does WBC or CBA when they were looser make them a Liberty.

There is others like Liberty though.....

 

Liberty are generous with lending & know they have many by the nether regions, so they keep squeezing, but if the deal is good, then it can be worthwhile instead of missing a deal (maybe)

Qudos are nothing like Liberty, they are not at all similar at all, just because they offered a special a few times, does not make them Liberty, as does WBC or CBA when they were looser make them a Liberty.

There is others like Liberty though.....