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Refinancing Amount/ UBank/ Top-up

Discussion in 'Property Finance' started by MarkyMark, 3rd Jun, 2016.

  1. MarkyMark

    MarkyMark Member

    Joined:
    28th May, 2016
    Posts:
    6
    Location:
    QLD
    Hi folks,

    Question regarding refinancing. Shopping around to refinance about 800k-1m worth of loan. Some brokers have been telling me the larger you refinance the more competitive the interest rate is available. I am not entirely sure whether this is a tactic to maximize their commissions/ or is being genuine?

    Other question is around folks whom are with UBank, how have you found the Top-Up process? Are they more conservative when it comes to revaluations? Which banks have the best top-up policies/ revaluations from your experience?


    Thank you
    Mark
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,975
    Location:
    Sydney
    Its true. High loans mean greater discounts.

    Tops ups with Ubank will be a nightmare. They lack flexibility and this can lead to stuffing up deductibility of interest.
     
  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker

    Joined:
    18th Jun, 2015
    Posts:
    641
    Location:
    Sydney
    Why do you need to refinance away from your existing lender? Is it due to rate? If so why don't you speak to their retentions team and see if they are able to give you a better rate.

    What are your requirements beyond the interest rate?

    Whats your longer term plan? No point in using say a generous lender now just to get a cheaper rate if you are planning to purchase x number of properties within a short period of time.
     
  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,769
    Location:
    Perth WA
    Just looking at U-banks rates, you'd get better with CBA and others at the moment for IP's. You'd pay a $400/yr fee, but the added functionality and convenience would outweigh the cost for most people.
     
    Jamie Moore and York like this.
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,161
    Location:
    Gold Coast
    Have a read of the t and Cs around the redraw with the u bank product.

    Obviously not an issue if you keep the loan fully drawn

    TA

    ROLF
     
  6. Cia

    Cia Active Member

    Joined:
    18th Jul, 2015
    Posts:
    34
    Location:
    Sydney
    I had a Ubank loan and two top ups. The original loan took 4 months to refinance PPOR. The Top Ups took around 6 weeks. It was a bit annoying because they wouldn't let me talk directly to the Credit Department, but in the end they got through. DM if you'd like more info.