Q: Hi there. Trying to work what makes more financial sense over a longer period ...paying out a higher interest personal loan with withdrawing cash currently sitting on my house mortgage OR leaving the $$ on the mortgage? The interest rate is 12% v 4.95%
A: Hi Renita, my advice is always if the equity is available in the home (so you won't be impacted by mortgage insurance) then consider rolling the personal debt as a separate split within the mortgage portfolio over a 5yr term. Then you get the best of both worlds! Consumer debt at mortgage rates :) let me know if I can help you with this and find a suitable lender & structure! Peita
Q: Looking for a new home loan and have spoken to Ubank and Loans.com.au. I really don’t want the hassle so can mortgage brokers match their rates…. 3.62%?
A: Hi Sam,
It all depends on how you present as a customer, the size of the loan and the LVR (Loan to value ratio) as to the best rate we can offer. We represent a panel of lender so we do have rates from as low as 3.55% (3.70%CR) variable but this has a healthy app fee. I have a great lender offering 3.64% (3.69%CR) variable for loans above $250K and LVR less than 80% and they are waiving all fees for refinances as a promo for the moment if that is of any interest to you? I also have a promo at the moment that by meeting with me you go into the draw to win a $10K holiday voucher from Flight Centre. let me know if you would like to arrange a time to meet. Thanks Peita
Q: I am about to sell a house and will come in front by about 200k, should I rent for a bit and see what's happening and save or should I be looking to buy straight away? I have heard of the saying buy n sell in same market although don't really know
A: Hey Michael, we will more than likely move into a more traditional selling market over the next year or so potentially giving you more options to purchase but personally I don't see the average home price in Sydney coming off much.
Q: When selling a house what are the costs involved besides real estate and legal?
A: Hi Michael, you'll have fees for an agent to sell the home and they may also charge marketing fees and a legal fee for a solicitor/conveyancer to prepare contracts as you have pointed out. Other fees you may incur would be "break fees" on your home loan if it is affixed rate loan, discharge fees on your variable home loan (say up to $500) could differ if your loan is with a mortgage manager. There are also government fees to de register a mortgage if there is one $107. And don't forget your moving costs! Good luck with the sale :)
Q: I have a personal car loan and interest free store cards, shall we consolidate with our home loan? Or continue to pay all separately?
A: Hi Paul, consolidating personal debt into your home loan is a great idea if you have the equity available but I'm not a fan of turning 5 year debt into 30 year debt. Even though the rate is better you'll end up paying way more interest. To combat this just arrange a split on your home loan at a reduced term for the personal debt. I'd also strongly advise against moving interest free debt into interest bearing debt unless your interest free term was over. Happy to discuss in further detail my strategy if you like 😊
Q: Is a 10% deposit still required by most banks/lenders for a home loan?
A: Hi Bill, it depends on your purpose. There are different lending policies for investors as for home owners. If your purchase is a home owner there are still lenders that allow 5% deposit but just remember you may need more money for stamp duty and legal fees. In short 10% of the purchase price is a good number to aim for to cover all you need. Less if you are a first home buyer and are purchasing a brand new property. Let me know if you'd like any more information. Peita
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, if your equity position can substantiate it consider adding a split on a 5yr term to your mortgage portfolio. Then you have a mortgage rate for your personal vehicle :) happy to help with structure if you have questions! Peita
Q: I'm looking at getting some advice around whether i should get a fixed or variable home loan, especially with the decline in real estate of late. Will that effect me?
A: Hi Hamish, happy to assist you with this advice if you need - Peita