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Refinancing 1st high LVR property

Discussion in 'Property Finance' started by skogs, 13th Sep, 2016.

  1. skogs

    skogs New Member

    Joined:
    13th Sep, 2016
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    Location:
    Melbourne
    Hi all. Long time since I last posted - last time was over on the Somersoft forums, I think. Anyway just wanted to run my situation past people. We bought our 1st property nearly two years ago, initially as a PPOR. Using a medico deal through a big 4 bank I got a 95% lend, no LMI, i/o for 15 years, with a 1.3% discount off SVR.

    Since then we've moved across town and are back to renting and now have tenants in the property, very slightly negatively geared. According to REIV stats (taken with a pinch of salt), median house prices in our suburb have gone up on average 8.78% per annum (though not sure what that period averaged over). So lots of assumptions here, but assuming that we paid market price and that our house appreciates in line with median house price rises our 95% LVR would be pretty close to 80% by the two year mark.

    Would there be a lot to be gained at this stage in shopping around for a better deal, or asking our current lender? Would the better LVR open more lenders up to us or put us in frame for a better discount? On the flip side my partner is now only part time and we have a dependant, but my salary has improved and is expected to continue to improve over time.
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    18th Jun, 2015
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    2,785
    Location:
    Perth WA
    Which lender are you with? You may secure a better rate with the same lender if it's now sub 80%, but to be honest the majors are pulling back on discounting so 1.3% isn't too bad. You could look at refinancing to a smaller lender if you aren't fussed on getting equity out etc - but really, a more in-depth knowledge of your situation and plans is required to give any meaningful advice.
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Location:
    Sydney
    Yes worth a look I think.
     
  4. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    9th Jul, 2015
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    Location:
    Perth
    Get some upfront vals done via a broker. Sometimes desktops can work in your favor and are 100% acceptable to certain banks. Takes 5 min to do one and work out your LVR to see if its worthwhile.

    More info as usual would be required such as purchase price of property?
     
  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,162
    Location:
    Canberra and Sydney
    Hi Skogs

    What rate do you have at present? Is the loan still coded as owner occ or investment?

    I agree with Jess though - 1.3% discount isn't too bad! Especially when they provided a 95% no lmi loan!

    Cheers

    Jamie