Q: If the RBA doesn't move rates how can the banks. Would now be a good time to go for a fixed rate?
A: Hi Jacob,
As the other advisors have suggested the banks/lenders no longer feel that following the RBA rate movements suits their funding positions and they are now tailoring their rate movements to reflect this.
The decision to fix your loan should be made after you have taken into account several restrictions that the majority of fixed rate loans have. Fixing is great if you need to have some certainty around your loan repayments and they can work really well if teamed with a variable rate to guve you some flexibiliry
Jacob, as the decision to fix needs to be based on your individual circumstances I would be very happy to step you through the decision making process if you would like to contact me on 0413 924 401.
Q: I took out an investment loan in 2011 and soon after moved in 2012, I recently realized that my loan type did not change to home owner loan, so therefore I have been paying a higher interest rate, am I entitled to a rebate or refund for the past 4 years ?
A: Hi Theo, I would be interested to find out which lender your home loan is with to be able to advise you. I believe that when you took out the initial loan in 2011 that there may not have been the difference in interest rates between owner occupied and investment loans that there is now. I recommend that you contact your lender to change the nature of your property to owner occupied asap and discuss the possibility of a refund. I suspect that you will find that the onus is on you to advise the lender of any change in the use of the property.
Q: Should I stick to an interest only loan for an investment property?
A: Hi Adrian, I am often asked this question by my clients. The decision on whether to structure your investment loan as interest only should be based on your individual circumstances and I would normally advise my clients to talk to their accountant or financial advisor to determine the best strategy. If you do not have an advisor I can certainly put you in touch with someone who can analysis your situation and provide you with the righr advice.
Q: We have had a few issues that have affected our credit rating but things have turned around and we now have around 20% deposit for a new home. Will our credit rating stop us from getting a new loan and what options do we have?
A: Hi Robyn,
I agree with Nicole - you should be very proud that you have been able to turn your financial situation around and save a deposit!
Based on what you have advised it seems to me that you would be able to apply for a home loan (there are quiet a few lenders who will consider loan applications from customers who have had credit issues in the past). As long as you currently have the financial capacity to repay the loan - ie regular employment and income then I suggest you should definitely talk to a mortgage broker to discuss your options.
Robyn, if you would like to look at your options please feel free to contact me - it would be great to help your achieve your goal.
Q: How do I get a low rate home loan?
A: Finding the right home loan to suit your situation should not be just determined by which lender has the lowest interest rate. There are many aspects that you need to consider when looking for home loan.
Traditionally home loans that have the least features tend to have lower interest rates.
There are many variables between lenders and products so I recommend that you talk to a professional mortgage broker who can show you how the lenders/loans compare and help you to decide which loan is the perfect fit for your situation.