When is the good time to refinance ?

Discussion in 'Loans & Mortgage Brokers' started by AlbertWT, 28th Nov, 2015.

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  1. AlbertWT

    AlbertWT Well-Known Member

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    People,

    I'd like to know when is the best time to refinance for all of my home loans ?

    Situation:
    I'm with Bankwest and have just settled last week for a new IP in QLD. My other investments are in NSW area (no PPoR since I'm renting).

    I have one Offset account for all of the IPs which was confirmed as OK with my existing mortgage broker.

    Any kind of help and suggestion would be greatly appreciated.
     
    AlbertWT, 28th Nov, 2015
    #1
  2. Jess Peletier

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

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    The best time depends very much on your circumstances. Is your portfolio sub 80%? I'm guessing yes as BW haven't been back in investments over 80 for long. If so that's good.

    Why do you want to refinance? Depending on your broker you may be up for clawback refinancing so soon after settlement.
     
    Jess Peletier, 28th Nov, 2015
    #2
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  3. Terry_w

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

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    When the current loans are no longer suitable. This may occur when:
    - your rate is too high
    - you cannot access equity
    - you cannot set up loans as needed, e.g. extracting equity
    - you need to restructure for tax reasons
     
    Terry_w, 28th Nov, 2015
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  4. Phantom

    Phantom Well-Known Member

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    Are you current loans not allowing you to do something that you want to? Better rate, another loan on the horizon? Lenders have different service calculators too. So some may allow your income to stretch a bit further than others. If you hit a wall, refinancing can sometimes help squeeze that extra amount out.
     
    Phantom, 28th Nov, 2015
    #4
  5. Jess Peletier

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

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    Also if your properties are x-coll, I'd do it as soon as possible and get it all structured correctly with a good investment lender at the same time.
     
    Jess Peletier, 28th Nov, 2015
    #5
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    To help us a little with that, why the choice of Bankwest for latest IP ?

    ta
    rolf
     
    Rolf Latham, 28th Nov, 2015
    #6
  7. AlbertWT

    AlbertWT Well-Known Member

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    Yes I'm after that one. Because at the moment each loans in my account is increased around 0.35 - 0.45%
     
    AlbertWT, 29th Nov, 2015
    #7
  8. AlbertWT

    AlbertWT Well-Known Member

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    @Jess Peletier
    Well according to my current mortgage lender it is not x-coll.
     
    AlbertWT, 29th Nov, 2015
    #8
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  9. AlbertWT

    AlbertWT Well-Known Member

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    Well it's because I'm with BW for my previous 2 other IPs.
     
    AlbertWT, 29th Nov, 2015
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  10. AlbertWT

    AlbertWT Well-Known Member

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    Yes I have just extracted my equity from my second IP so now I can settle for my 3rd IP this month.
     
    AlbertWT, 29th Nov, 2015
    #10
  11. Superbird

    Superbird Member

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    Am looking to refinance my IP away from bankwest too due to their recent hikes...no longer competitive in my opinion.

    However, once I requested a discharge form they have sent my case to their retentions team. I hope to hear back this week for a better offer and rate.
     
    Superbird, 29th Nov, 2015
    #11
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  12. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Which lender would u like to move to ?

    ta
    rolf
     
    Rolf Latham, 29th Nov, 2015
    #12
  13. AlbertWT

    AlbertWT Well-Known Member

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    How many loans do you have under your name in Bankwest ?

    I've got 5 loans in total. (2x Super Start home loan @4.60% and 3x Premium Select home loan @4.92% ) with just one Lite Direct (offset account).

    let us know how did you go with the counter offer ?

    Thanks @Superbird
     
    AlbertWT, 29th Nov, 2015
    #13
  14. AlbertWT

    AlbertWT Well-Known Member

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    Not sure, as long as the lender can give competitive interest rate and also redraw facility that'd be sufficient.

    How about loans.com.au will they accept existing customer of BW like me for investing refinance ?
     
    AlbertWT, 29th Nov, 2015
    #14
  15. Jess Peletier

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

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    You should definitely be able to do better than that. Absolutely.
     
    Jess Peletier, 29th Nov, 2015
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  16. Jess Peletier

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

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    @AlbertWT I would not suggest refinancing 5 loans yourself. See an investment broker and make sure is done right.
     
    Jess Peletier, 29th Nov, 2015
    #16
  17. Superbird

    Superbird Member

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    Will do. At the moment have 4.69%. BOQ can do 3.99!
     
    Superbird, 29th Nov, 2015
    #17
  18. AlbertWT

    AlbertWT Well-Known Member

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    Cool,

    @Superbird how is that possible moving away a loan from a property that is still not fully paid by you ?
    I was under the impression that Bankwest will not let you go since the loan is not repaid in full yet.
     
    AlbertWT, 30th Nov, 2015
    #18
  19. Terry_w

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

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    Refinancing involves paying one loan out with another. Bankwest could not keep you if you paid the loan out, they must discharge the mortgage and let you go.
     
    Terry_w, 30th Nov, 2015
    #19
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