Guarantor Loan Refinancing Help Is It Possible

Kamanli on 05/06/2019 - 13:53

Hi All,

I currently have a guarantor loan on my home with cba. I have a two part loan one of 600k and the other 170k.

The loan structure is o.o variable rate, with offset account, redraw facility and no limits on extra payments and the interest rate is currently 3.92% after asking for better rate as it was 3.97% not much of a discount but something.

My question is am I able to refinance with a new bank with a guarantor loan? I have spoken with someone at anz who could potentially give me a rate of 3.7% and better. Also they have a $3500 cash back of which I was told $500 Would be used for fees.

Thankyou in advance

Financial Home Loan

Comments

  • GG57 on 05/06/2019 - 14:03
    +1

    Didn't you ask the ANZ rep?
    The level of security that the lender holds can affect the interest rate offered.

    • Kamanli on 05/06/2019 - 15:21

      I neglected to mention it. I was trying to see what they were offering to get a better deal from cba. But now I am actually considering a move since I don't owe loyalty to any bank and happy to move to one that will provide me the lowest rates pending they are willing to take on the guarantor part.

  • tsunamisurfer on 05/06/2019 - 15:41
    +2

    So you went to the trouble of contacting ANZ to get a better rate but didn't ask probably the most important aspect of your loan requirement?

  • Kamanli on 05/06/2019 - 16:07

    Ok I have contacted just now and it's not an issue.

    How is the anz bank? They are one of the big 4 banks I assume no different.

  • Traveller107 on 05/06/2019 - 17:21
    +3

    CBA are dropping their standard variable rates in a few weeks and passing on the full rate cut. Did you enquire if ANZs offer is inclusive of their expected rate cut(seems like it is)?
    Make sure you compare both rates based on the upcoming reductions. Cheers!

    • khelddar on 06/06/2019 - 18:29

      I echo the above, CBA is cutting their rate by 0.25% on o.o variable on the 25th of June

      The rate your being quote from ANZ is most likely their rate after they passed on 0.18% of the rate cut

      If this is the case then the 3.92% - 0.25% becomes 3.67%

      Then it really comes down to the cash back and if you think it is worth it

  • malich on 06/06/2019 - 16:41

    You can refinance it using either of the two scenarios:
    -If your total loan to value (LTV) ratio is under 80%, the new institution will finance the whole balance without too much concern
    -If it the LTV is above 80%, you can refinance and pay for LMI

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