(Victoria) What's the best refinance deal out there for my situation? Happy to use a mortgage broker

Hi all

Hope you're well.


Scenario:

PPR, Regional Vic 3722 new build recently completed 4bd 2bth 2 car on 802m2 , $375k loan with CBA ~2.8% 30yr - $1586 P&I monthly repayments, $600-720k market value. $100k sitting in an offset account, savings.


Income:
Sole trader, photographer
- FY20-21 Income $96k net ordinary income Looking for a bank that'll look at 1yr FY20-21 tax return as my FY19-20 tax return is low net income (i think about 49k).

Monthly expenses on top of mortgage:
$1200-1800.


Assets:
- The PPR
- $6,500 Honda car
- $24,000 business equipment


Debts:
Nothing, beside the mortgage.
No credit cards or other debt facility.

Repayment/Credit History:
Perfect , never single late repayment, debt, overdue etc.


Looking for:
A better interest rate (happy to explore fixed or variable whichever better) with offset facility + any incentives like a cashback (eg 3k bank of Melbourne cashback) would be a lovely bonus. Looking for the best deal out there.

I have 3x resi land purchases I have made and deposited 5% on that title in Early 2022 so a broker that could help with this would be the same broker that i'd use for these 3 2022 purchases.


Thanks all

 

The difference in both years taxable income might be a hurdle for you.

You'll need to find a lender that is happy looking at your latest year financials.

 

Thanks so much @Tony Xia , agreed. CBA on my last loan just looked at last year financials so I am thinking of going with them as they said they can assist given I give a larger deposit toward each sale, with the preliminary numbers I've mentioned above. is there anyone else I should consider beside CBA? Their loan offerings are high 2%s

 

There will be no one lender fits all 4 finances and there are multiple things to look at 1year financials, DTI, servicing, strategise for purchase of land and then ultimately construction (if possible). It will need a broker to spend time on all aspects and set numbers that matches lender policies. What will also be important is estimates of next year income.

 

There are a few lender options that consider the most recent years income in isolation. Wouldn't hold your breath for a refinance cash back, as your priority is lower rate based on most recent year income - if you get one, consider it a bonus

Have you checked you could afford to borrow for the 3 x blocks of land, before you put the 5% deposits down?
Given that land doesn't generate any additional income for you in the way of rent it's pretty important to check this. If the intention is to build on the 3 blocks straight away then there is potential to use end rental estimates towards borrowing capacity.
You won't need future income projections as lenders will base your borrowing capacity on the most recent years actual income received, not forecasted income.

Cheers,
Lindsay

*I see you created two identical posts* - you only need the one for each topic
What would be the best lender for this scenario? Happy to use a broker as well if needed

 

Thank you so much for the advice Lindsay your advice is immensely helpful. Apologies that duplicate post was an error and my fault - I have asked mods to remove the original one