Refinancing - ex-Resident

Discussion in 'Loans & Mortgage Brokers' started by Reynard, 5th Oct, 2019.

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  1. Reynard

    Reynard Member

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    Hi All,

    Is there anyone who can assist with a refinancing question from a family member :

    - She bought a property (unit in Sydney) in 2010, as an Australian PR
    - PR has since expired and not renewed, is currently a foreign resident
    - Looking to refinance to take advantage of supposed lower interest rates
    - Mortgage broker advised it is best not to refinance, as different criteria for resident/non-resident, and loan might even be revoked?!

    Appreciate anyone on this forum who could give some advise. LVR is low as far as I know, and the only reason she's seeking to refinance is to get better interest rates (shes stuck with fixed Interest rates currently).

    Thanks
     
  2. Trainee

    Trainee Well-Known Member

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    Even if refinancing was possible they would still have to pay break fees?
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Its difficult for non residents to get finance these days but it is possible unless they're self employed.

    It depends on lots of things though, like the currency they get paid in and so on. Servicing tend to be an issue for many due to the shading of income that takes place.
     
  4. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    CBA, ANZ and the Sintex product are all great for expat lending.

    There may be issues with the location of the unit, valuation or servicing so you need to get these checked out against each of the lenders' policies.
     
  5. Richard Taylor

    Richard Taylor Well-Known Member

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    Sounds like the borrower is a Non Resident rather than an Expat but cerrtainly doable.

    Whether it is worth doing depend on the rate they are being charged.

    Cheers


    Richard
     
  6. Reynard

    Reynard Member

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    Hi,

    Thanks for all the replies. I've got additional information here : interest is at 4.39%. Apparently the fixed rates lock in term has lapsed. At above rates, any point to consider refinancing?

    Yea, paying break fees is fine if it means lower interest rates

    She's not self employed, but earning a foreign currency, yes. Would that add a premium to interest rates?

    I would think evaluation is not an issue as loan wss for about half of the property cost, that was in 2010. After the Sydney boom, it should be far less than 50%...

    She is a non-resident, you're right. At 4.39% currently, from other threads in this forum, it's higher, I'm just not sure if the status of a non-resident makes a big difference or not?

    Cheers,
     
  7. Terry_w

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

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    Not a bad rate for a circumstances
     
  8. Richard Taylor

    Richard Taylor Well-Known Member

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    Yes makes a massive difference. One lender last week did away with their risk fees but didn not drop their interest rates. 4.39% is extremely competitive.

    Cheers


    Richard
     
  9. Reynard

    Reynard Member

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    Thanks for all the advice. Guess I ll let her know to forget about refinancing in the meantime.
     
    Terry_w likes this.

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