pelican Pelican Member 141 Member For: 19y 3m 24d Location: Gold Coast Posted 18/03/06 03:55 PM Share Posted 18/03/06 03:55 PM Hi Jack,just a thought, is the loan Interest Only or Principle & Interest ?What percentage % rate is the loan at ??What rate %% will they give you if you fix the loan for say, 3 years.... ??What % is your "deposit" going to be ??We deal with banks directly AND brokers all the time in the line of business.... so have seen our fair share of idiots on both sides of the fence....CheersScott Link to comment Share on other sites More sharing options...
G6ET8U Playing with Sports Bikes... Silver Donating Members 1,927 Member For: 19y 20d Gender: Male Location: Whistling, GTX. Posted 19/03/06 08:25 AM Author Share Posted 19/03/06 08:25 AM Hey Scott...just a thought, is the loan Interest Only or Principle & Interest ?It's principal and interestWhat percentage % rate is the loan at ??6.65%What rate %% will they give you if you fix the loan for say, 3 years.... ??Not sure mate I forgot to ask him that question when he came over this afternoon... we haven't 'locked' in a fixed term for this mortgage.What % is your "deposit" going to be ??The house is valued at about $250k and we have refinanced to the tune of $160k so we have used the existing equity in the house as a deposit and that is $90k...Jack Link to comment Share on other sites More sharing options...
pelican Pelican Member 141 Member For: 19y 3m 24d Location: Gold Coast Posted 19/03/06 08:54 AM Share Posted 19/03/06 08:54 AM Hi Jack,Nice one... 1) Interest rate is good...... Bendigo have loans out there @ aboutr 6.55% if you need to squeeze it down some more.....2) What is your intention on the loan ? you want to pay it off or does that not matter to you ?? The house will improve in value over time anyway, so, all that will happen is you pay a small amount down on a P&I loan....I'd suggest you have a long hard think about that one, as, IF you went Interest only, your payments would be less.....3) Chase up on the rate fix for a few years.... as long as the rate is attractive, it may be worth it.....4) Deposit amount is good, so, see what you can also get direct from a bank...... you may be surprised.......CheersScott Link to comment Share on other sites More sharing options...
G6ET8U Playing with Sports Bikes... Silver Donating Members 1,927 Member For: 19y 20d Gender: Male Location: Whistling, GTX. Posted 19/03/06 09:09 AM Author Share Posted 19/03/06 09:09 AM The intention of the loan is to pay off the house, as it will be my sole place of residence in the future, the plan is for my parents and I to make the minimum repayments each week and use the extra money we will be saving from the refinance to make a couple of bulk repayments every few months which come directly off the principle (correct me if I'm wrong)... then from there in maybe a year or 2 (no firm plans but changes to the living arrangement are on the horizon) we will use the existing equity and whatever we have paid off between now and then in this house to purchase another house together like we have this one for my parents to live in as they want to move to the Western Districts of Victoria (Camperdown/Colac), they aren't really fussed as to where it is and it doesn't have to be a palace or anything just somewhere really quiet and peaceful for them (Mum has plenty of work opportunities out that way too which is a huge bonus), we are planning of having a budget of about $160k for the next house...What do you think about that? I'm interested in your thoughts. We feel it is something we can work towards and quite attainable for us...Jack Link to comment Share on other sites More sharing options...
Falchoon I see red Member 5,758 Member For: 21y 11m 2d Location: nowhere in particular Posted 19/03/06 09:41 AM Share Posted 19/03/06 09:41 AM The intention of the loan is to pay off the house, as it will be my sole place of residence in the future, the plan is for my parents and I to make the minimum repayments each week and use the extra money we will be saving from the refinance to make a couple of bulk repayments every few months which come directly off the principle (correct me if I'm wrong)...I think you would be better off paying a bit extra each week rather than "saving" and doing a bulk payment. AFAIK with most loans the interest is calculated daily, so the pittance you would earn having the money in a savings account earning <2% interest (and take tax out of that as well!) would be better off taking it straight off your 6.55% loan. If you get stuck for money you can always redraw, but you will need to be disciplined and try not to make a habit of doing this. we are planning of having a budget of about $160k for the next house...Not sure where you buy houses for $160K, maybe a one bedroom unit somewhere. Probably double that at least would be a more realistic budget.I have dealt with home loan broker on two occasions (same one both times) and found them to be great. Mine was quite open and honest about the commission. Less hassle than trying to deal direct with the bank. Link to comment Share on other sites More sharing options...
G6ET8U Playing with Sports Bikes... Silver Donating Members 1,927 Member For: 19y 20d Gender: Male Location: Whistling, GTX. Posted 19/03/06 09:46 AM Author Share Posted 19/03/06 09:46 AM Not sure where you buy houses for $160K, maybe a one bedroom unit somewhere. Probably double that at least would be a more realistic budget.Nah, not really... they are wanting to move to a small, quiet country town (they will be about 3 hours west of Melbourne) and after having a look on the net over the last few weeks we have seen heaps of 3 bedroom homes in the area's mentioned from as low as $140k so it is achievable...I love your sig Falchoon, makes me laugh everytime I read it... Jack Link to comment Share on other sites More sharing options...
pelican Pelican Member 141 Member For: 19y 3m 24d Location: Gold Coast Posted 19/03/06 01:56 PM Share Posted 19/03/06 01:56 PM Jack,based on the equity you have now, you could probably buy the second house straight away......only issue would be the repayments !!!CheersScott( Westpac now doing 85% lend with NO LMI..... ) Link to comment Share on other sites More sharing options...
SJW Member 122 Member For: 21y 2m 26d Location: Brisbane QLD Posted 22/03/06 10:20 AM Share Posted 22/03/06 10:20 AM Jack,I am a broker and can confirm you have received good advice. For the loan amount you seeking, Bankwest offers the best rate of 6.65% as well as Heritage Building Society and Homeloans Ltd. The lower the rate , the less interest you pay and the more money stays in your pocket ( or to buy a new car .... lol ) Aussie loan selection software is above the industry average and has worked in this case to idenify the right loan for you.Good luck.If you ever want to confirm your loan in the future ( or any other forum member ) , then send me an email - simon@loanfinder.com.au and I will assist for free ( like any good broker should ).CheersSimon (SJW) Link to comment Share on other sites More sharing options...
XRBloke Donating Members 1,219 Member For: 21y 4m 23d Posted 22/03/06 10:35 AM Share Posted 22/03/06 10:35 AM Sounds good, I also have a broker background but am no longer doing consumer stuff, I only do commercial now as theres less stress and tyre kicking involved... My thoughts are that I would also pay a bit extra each week or month when ever your payment falls rather then trying to save lump sums, even if you pay an extra $100 the savings in the long term in time and interest can be quiet large, specially considering your loan is reasonbly small, I wish mine was that sum! Good luck with it. The only other thing I have to say is that I really dont ever condone people getting tied up with parents / brothers and sister in financing property together as things can get complicated down the track. Assuming however that you have no brothers and sisters and that your parents wills etc will be all left to you then I can't see any issues, but if there are other people in the family who may be involved then perhaps you should get some legal agreements drawn on who actually owns the property if someone in the family passes away. It would obviously make sense for you to get the property if your parents passed away since you've been paying for it, plus if anyone else gets involved you may have to payout their share or even sell the property down the track. I know this isn't something people like to think about, but at the end of the day signing those papers isn't just for the fun of it, and yes things can get complicated. Seeing a lawyer could also be something to think about if your not entirely sure about how it is all split up, I really can't advise there as I have no legal background so if you are not sure make sure you get legal advice. Link to comment Share on other sites More sharing options...
harvyk Member 1,070 Member For: 19y 8m 17d Location: The North Cooma End of Canberra... Posted 23/03/06 02:04 AM Share Posted 23/03/06 02:04 AM I'mm with XRBloke, you and your parents should really sit down with a lawyer and get all details of what happens in the future, and in every possible senario (no matter how morbid)I'd also make sure it's drafted up what happens in the senario if either you or your parents wants to sell their share in the house. Whilst it's not something your planning on later down the track you might find yourself in a position where you need to sell your share of the house and things could again get messy and extra complicated.My experience with brokers is that as long as they don't attempt to charge you for their service (some do) then they are probably going to be ok. Also make sure they really are impartial (which I think Aussie are). I personally used Aussie when buying my current house, as did my sister-in-law...Good luck with it all... Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now