Refinance or Bring loan to other bank, help please!

webtherapist on 17/01/2017 - 09:19

hi OzBargainers,
My friend in NSW recently has purchased a vacant land with his wife through Aussie Home Loan's introduction to Westpac, they went ahead with Westpac Flexi First Home loan for their land. Now they decide to build a house on it, they (not on OzBargain) asked me opinions about it which I have no idea so decided to ask for everyone's on here. They wonder if they should get a loan to build by refinancing with Westpac OR apply a separate loan with another bank with lower interest rate OR refinance with Westpac/other bank? They paid 20% deposit for their land (land cost around 150K) so far and looking to build a 250-300K house with 10% deposit. Thank you for your time and opinions guys.

Financial

Comments

  • QW3RTY on 17/01/2017 - 09:31
    +1
    1. Go to market.
    2. Find the best deal for the loan they are eligible for/suits their construction purposes.
    3. If cheapest debt is not with current lender, ask current lender if they can "match or beat" the value of the cheapest debt.
    4. If they can, refinance with Westpac. If they can't, engage new lender.

    Or simply put.

    =IF((LOOKUP(CHEAPESTLENDER,ALLLENDERS)<WESTPACRATE,approachWestpactoMATCH,engageWestpac)

    • webtherapist on 17/01/2017 - 09:48

      thanks :), 'price match' everywhere lol

  • EightImmortals on 17/01/2017 - 10:21

    We always use a decent broker. They know stuff that us mug punters don't know how to find or what to ask. :)

    We use these guys and they have been great, http://www.firstchoicehomeloans.com.au/ other peeps might have other recommendations.

  • dasher86 on 17/01/2017 - 14:47
    +1

    Ask this Uni grad working at Westpac for some help.

    https://www.ozbargain.com.au/node/273269

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