Best loan serviceability

Hi all,

1st time poster.

I am currently looking to refinance my properties.

PPOR, 650k loan (70-80% LVR) p&I 6.04%, one of big 4, 27 yr left.

2 IP's, around 500k and 330k respectively (70-80% LVR), interest only 6.73% , one of big 4.

All jointly owned. Me and my partners annual gross income around 200k, however i got novated lease and latitude store card too (15k). Annual rental income 42k.

I am trying to refinance now and spoke to one of big 4. They are doing 1% buffer for refinance (7-7.5%), still bit short on serviceability and need to close off car lease.

Question:

-Which lenders are more lenient on serviceability now ?

-Given my circumstances, can i be able to refinance without closing store card and novated lease?

-Will i get better rate and serviceability if got to lower tier banks thorugh broker?

Thanks in advance.

 

none of those questions can be answered any any meaningful way, you need to see a licenced broker

 

What are you trying to refinance? The IPs?

If you've spoken to a bank around refinancing with the 1% buffer and it won't fit "as is" then that feedback will likely be consistent with most as they'll be using the 3% standard buffer. Non-banks will have better servicing, but in the most case rates will be worse than current.

Some lenders look at car leases slightly differently in terms of servicing so best to speak to an expert to see what your options are.

 

Whats the purpose of refinancing. 6.04 is very sharp and better than most new to bank offers now.
6.73 can be sharper, but not miles off (indeed some big bank market rates higher than this for new customers!).
Could potentially use equity if available to get funds out that replenish your reserves once card/lease paid out - but not sure its much value.

Overall, not sure there's too much value refinancing if there's these big hurdles to cross that you dont really want to.

Wouldn't be refi'ing to non-banks with higher borrowing for rate purposes.

 

Thanks Morgs and Redom for valuable insights.

Little bit extra rate does not harm , but looking to move out from current lender and release bit of equity if available and allowed by lender and keep it on loan/offset account for some possible foreseeable expenses.

Would love to know if any non bank or 2nd tier banks that does not too fussy about novated lease and better serviceability currently than the big 4's (or NAB which i did not tried yet).

 

If the main reason you want to do this is to release equity, this generally falls outside the policy parameters of the 1% buffer rate offers. The absolute most you'd get elsewhere is about $50k under these policies.

Unfortuantely if your serviceablity is already tight under the 1% policy this only leaves the non-conforming lenders available such as Liberty. Most of these lenders will have significantly higher interest rates than whay you currently enjoy.

There aren't any lenders that will ignore the novated lease (or other debts for that matter). Residential credit is regulated, they can't legally ignore existing commitments. I will say that a novated lease is probably the worst thing for serviceability second only to a credit card. If you want to maximise serviceability, get rid of the novated lease.

You really do need to see a broker about this.

 

Hi there

Have you asked your current lender for a rate discount? You probably won't get a further discount on the PPOR loan but I wouldn't be surprised if they dropped the IP loans a little.

Just give them a buzz and tell them that you're refinancing to lender xyz at a rate of %xxx and would like to offer them the opportunity to match before you leave.

Cheers

Jamie

 

Poor is a Good rate..you won't be able to get a rate like that currently with a big 4 ..unless it for other purposes.

InV can be better

But if you can't even service the loan at 1% buffer then you'll have troubles with other majors ..maybe need to try second tiers but the rate won't be as good.

But what is your purpose and what arr you trying to do ?

 

ha ha but many on forums giving unlicenced advice