Q: Does it make sense to use the equity in your property to purchase a private vehicle versus a lease or personal loan with regards to the interest rate?
A: Hi Nicholas B, generally speaking the interest rate on your Home Loan will be cheaper than a Lease/Personal Loan/Car Loan but sadly the answer is not as simple as that because we would also need to take into consideration how much you need to borrow, whether you have enough Equity and also what will the overall Loan to Value ratio end up being because if your overall lending is above 80% then we need to also take into consideration the cost of Lenders Mortgage Insurance. So whilst the Interest Rate may be cheaper, with added cost it may well work out more expensive. Cheers, Rob
Q: What is the best interest rate I could possibly expect to negotiate if I refinance my home loan?
A: Hi Laina O, Usually when I am asked a question like yours I respond with "what is your definition of best". Interest rates are generally based on aggregate loan size and some lenders also throw into the mix the Loan To Value ratio. I could quote you a rate of say 3.99% for arguments sake but your particular scenario might not fit the lenders requirements so to be able to realistically answer your questions we would need to know the Loan Size and value of the Security property and then on top of that we would need to understand what features and benefits are important to you to then be able to determine what might be the "best" rate or loan for you. I hope this makes sense and helps. Cheers, Rob
Q: Are redraw facilities easy to use? Can they be online or do I have to call the lender every time I want to access funds?
A: Hi Michael C, as you can appreciate ever lender is different but generally speaking redraw facilities are as simple as transferring funds from one account to another via Internet banking. Depending on your circumstances and how much you need to borrow an Offset account could be another option. Cheers, Rob
Q: Is a 10% deposit still required by most banks/lenders for a home loan?
A: Hi Bill V, Whilst there are still lenders that will lend to 97% including Lenders Mortgage Insurance if you aim for 10% then this will give you a better range of lenders to chose from and make sure you have enough funds to cover all costs. Cheers, Rob
Q: What are the new changes in the credit rating system? And if I have been late with my electricity bills will this affect my rating?
A: Hi Angus W, unless the bills have been handed over to or sold to a collection agency then they should've affect you rating. Cheers, Rob
Q: If i sold an investment property at profit will taking on a new investment property loan in the same financial year help minimise my cgt?
A: Hi Linda G, this is really a question for your Accountant but my understanding is no. Cheers, Rob
Q: we have a loan approved but I am a little nervous about the repayments - is there a way in which I can get reassurance that we can afford the loan?
A: Nathan C, you are he best benchmark for that question. Lenders make their own assessment based your income, fixed commitments and other lifestyle expenses. Every time you borrow money it will affect lifestyle so a good guide is what are you currently paying in rent and savings and if this is comparable to your new mortgage payment the it shouldn't affect lifestyle. Anything more than this you then need to determine whether you can adjust your lifestyle to accommodate. Cheers, Rob
Q: We have strong equity in our home and a smallish mortgage. We want to renovate and remortgage but without increasing the repayment amounts or duration of the loan. Can this be done?
A: Hi MJ Z, the short answer is probably yes but it will obviously depend on how much you need to borrow and what the value of your security is. Lenders generally price their loans on loan size and loan to value ratio. A Mortgage Broker is s good place to start as we have access to multiple lenders and are generally aware of all the different offers that are available. Cheers, Rob
Q: How can I look at a broad range of home loans to work out which is best for me? I really want to compare more than just the interest rate ?
A: Rob M, a Mortgage Broker is the best place to start as we generally have access to 30+ Lenders. Recommendations from family/friends/colleagues is probably thirst place to start to find one that can help and guide you. Cheers, Rob
Q: They say changing lenders is easy and you should look for a better price and service - but how often should I do this?
A: Jimmy S, it is s real dollars and cents question. There is no specific time frame but I would suggest you review your loan at least every 12 months. To change lenders there needs to be a financial benefit to you to make it worthwhile. Talk to a Mortgage Broker that you trust to be honest and impartial- someone to give you an honest opinion as to what your options are and what if id going to cost. Cheers, Rob