Refinancing Questions

Discussion in 'Loans & Mortgage Brokers' started by Tim1268, 21st Sep, 2019.

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  1. Tim1268

    Tim1268 Member

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    Hi I've got about $500k in mortgage debt over 2 loans they are on 2 apartments that are less than50 sqm. I am currently with commonwealth bank and they are charging between 3.9% and 4.64% for the 2 loans.

    I've called up to request repricing they aren't really moving does anyone know another bank than can refinance properties < 50 sqm? Thanks in advance.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker Business Member

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    Yes there are many.. But how small are they? (the apartments)
     
  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Under 50sqm isn't an issue with a lot of lenders - its once you go under 40sqm that the lender options shrink.

    Couple of questions are going to be:

    1. Did you pay LMI with CBA? This is important as LMI is generally not transferrable and you will lose your LMI credits.

    2. What is the postcode, specific development location and number of units in the development as lender such as Westpac and St George have specific development restrictions, other lenders have postcode restrictions and some lenders don't touch high density developments or have lower LVR restrictions (such as say Macquarie).
     
  4. Tim1268

    Tim1268 Member

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    Thanks guys

    Both under 40 sqm one is 35 and another one is 31 both in potts point (2011)

    LMI not an issue I bought these years ago loan amount is about 50% of property valuation.
     
  5. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    At those LVRs Bankwest (min 30sqm), Qudos (min 35sqm, Suncorp (min 35sqm) and TMB and Unibank (min 35sqm).

    You still need to double check the postcode and specific development developments.
     
  6. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Given they're below 40sqm normally I'd say your choice is the CBA or the CBA. As the LVR is around 50% there might be a few other lenders willing to take it. Realistically though I don't think you'll find a cheaper solution with a lender that's going to be somewhat reliable in their pricing.

    I'd start by trying to renegotiate with the CBA or switching to a better product.
     
  7. Brady

    Brady Well-Known Member

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    3.9% > 4.64% why difference in rate? Guessing P&I > IO?
    If so could look at both being P&I
    Also better options on both with fixed.
     
  8. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    Anz as well I think at that LVR