Browse Forums Home Finance 1 Jan 23, 2010 8:36 pm Hi all, I am confused about who to borrow money from for a property. I am looking at getting a property around 320K in Melb outer east and can pay deposit around 80k. I earn an average wage and am a single male with no other debts. I have checked the big 4 and credit unions and Rams/myrate seem to come up the best for IR. The issue is I am reading many people unhappy with these 2 lenders. I want a property for about 2 years and then want to upgrade so my loan will change. I need a loan to allow me to change after about 2 years and low exit fees and most importantly low IR. I am after some advice only then I will make up my own mind. Thankyou Re: which loan 2Jan 25, 2010 8:43 am Hi Jagguy, At some stage all lenders have people unhappy with them - so that is not necessarily a reason to make a decision to go with a lender or not - it is about whether that lender will do what you need for now and the future - which is what your looking at which is great. I am not going to tell you which lender to use or not use - however there are alternatives to paying out a loan and then re-applying for a new one for the next property (depending upon how long between selling and re-buying and the difference in prices and the value of the property). You can make sure the loan is portable which most loans are but check and then depending upon whether you have a same day settlement for the sale and purchase OR whether there is time in between you may not have to pay the loan out. This type of transaction is better off I have found with the majors - even banks like St George can not always do this so you need to check before applying through that lender what they can do. Depending upon the lender, if you have a fixed rate loan, the loan can still be portable - meaning that you can change the security without breaking the fixed rate term and paying penalty fees and if you need an increase then you can get a second loan for the amount you need as an increase (some products may not be available if they are under $50K or $25K) So there is a lot to consider - after researching this for yourself and you are still not sure then get in contact with a good broker - make sure that they know though how to handle this scenario for you without incurring lots of fees for you. Good Luck Re: which loan 5Jan 28, 2010 8:17 am myrate.com.au has good rates, low ingoing fees etc - have you looked at the Deferred Establishment Fees (DEF) for paying a loan out at 2 years - 3 Years. If you are buying a Principel Place of Residence you are in for approximately $15,000 in costs on top of your $320,000 - taking your overall cost of funding to $335,000 minus your $80,000 leaves a loan of approx $255,000. On $255,000 if you pay this loan out with myrate.com.au in the second year there is a DEF of 0.8% = $2,040.00 - if it rolls into the third year then the DEF is 1,530.00. This is without any other dishcarge fees and can they substitue a cash Term Deposit to hold your loan if you want to buy another property and it settles after you sell your first place? The larger banks have exit fees of around $700 - $900. So keep that in mind also - get all fees from all lenders you are thinkging about using (in and out fees) which includes RAMS as their DEF are high as well depending upon the product you take. Re: which loan 6Jan 28, 2010 8:23 am Have you had a look at Mortgage House yet? We're getting our finance through them, and the process has been painless. Our rate is also less than any of the big banks and other mortgage brokers. Stefan Building the M3tr!con Liberty 42 at Stonecutters Ridge. The New Build Blog - "Life, In Progress." Stonecutters Ridge Community Website | My photos Re: which loan 7Jan 28, 2010 8:53 pm ok they seem to have higher IR? http://mortgagehouse.com.au/home-loans/ ... -loan.aspx Re: which loan 8Jan 28, 2010 9:05 pm jagguy ok they seem to have higher IR? http://mortgagehouse.com.au/home-loans/ ... -loan.aspx Of course it's all dependent on what loan you get. Stefan Building the M3tr!con Liberty 42 at Stonecutters Ridge. The New Build Blog - "Life, In Progress." Stonecutters Ridge Community Website | My photos Re: which loan 11Feb 22, 2010 8:46 pm questor Have you tried phoning Rams yet? Is that the lender with 2% (of loan amount) fee if you discharge your mortgage in the first couple of years? Re: which loan 12Mar 17, 2010 5:42 pm Hi jagguy, Any broker should be able to give you free advice, if you don't use them after that advice, that is up to you. Would need a little more information but if you are upgrading your PPOR, then just get a loan that is portable and most lenders wont charge u much at all to change securities. If it is for a property you aren't living in, then to make the most out of CGT and other fees, I would go see an accountant and talk to them about the advantages (and disadvantages) about setting up and purchasing through a tust / company. For other free advice, there are plenty of places on the net where you could be able to find that information. good luck The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19475 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35637 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 12068 |