Refinance Home loan - Option/Advise -

I have been reading some of the threads and on all the current low rate home loans and it has got me pondering refinancing (I believe that the term for moving my home loan to another bank). I have only ever held one mortgage (current one) with the ANZ bank, for around 15 years now.

I have never looked into other options. I want some advice on this to help pay down my debt quicker and find something that has options as of this morning found out what redraw actually is (noob question I know).

Home lone is currently around $170k and have a sup loan of about $18k. I'm unsure of the interest rate of the sup loan and the main loan is about 3.5ish%

What would be the best process in my refinancing both these loans into one? What products are recommended as good value at the moment? What would be some good options to keep an eye out for?

Sorry for the vagueness of my questions, just something I would like to move on given the current interest rates

Comments

  • +4

    Advise

    FFS it's advice

    • +7

      The guy just wants some advise on his lone.

      • +4

        Mi baad. Sorie four sownding angri.

        • Your england is bad mate…

    • +1

      They are asking for advice, ie, please advise me, it is used correctly here.

  • Refinance with UBank and call it a day.

  • Athena or UBank or TicToc are pretty low rates for loans where the borrower has simple needs and is low risk to the lender.

  • Send me you online banking details and i will sort it out for you

    • And don't forget to include the PIN

  • -3

    Contact Michael at [email protected]. He is a broker and posts her on occasions. I replied to one of his posts and offers and I’ve been with him since. He’s just refinanced is with BOM with a $4K rebate and a 2.89% deal. We always find him great and he does all the work for you.

  • What's the overall opinion of brokers. I have my reservation of in whose best interest they have as a priority.

    • +1

      Brokers get around $6000 for setting up a loan (doing some paperwork). Guess who pays that in the end. In my view brokers are only of use if you are having difficulty getting a loan.

      • Where do you get that figure from? It's a percentage of the overall loan size so if it's a very large loan over 1 million, than yes perhaps they could make near that much but generally it's far less. The bank pays them, not the client unless they are charging additional brokerage which not a lot do but just ask them up front. Where they help people is knowing the products inside out, if you go to a bank they will say yes until they say no. This means they generally don't tell you that you fall outside of their lending policy until they decline it and that's another hit on your credit file that could potentially make it harder for you to go to the next lender. Also with all of the credit laws in place lenders are having to have have between 30 to 90 days of all of your transactional bank accounts and a good broker will vet these prior to submission and potentially save you decline as something as simple as having under declared living expenses vs what is on your bank statement can cause a decline if they feel that you don't meet the servicing requirements based on your expenditure. They will also do all the back and forward legwork and generally speed up the process more than going direct. If you are very vanilla and everything's in order and you're happy to do the legwork than yes you don't need broker but if it doesn't cost you anymore than why wouldn't you? Yes there are dodgy ones out there and ones that don't have clue but people like that also work at the banks. Ask questions of a broker, talk to them about other lenders that you have seen advertisements for etc, they should be working for you at the end of the day.

    • +1

      If you're not too familiar with the process or your situation is complex, maybe seek a broker. But even then, you should do a bit of your own research, because not all brokers have connections with all lenders, so you could miss out on something better. If you do find something better that the broker does not have, you can always use it for negotiations.

      Also keep in mind that they are there to make money, they're not a charity. So put a little bit of effort in if you really want the best for yourself.

  • whats your interest rate. rn i got a quote 2.98% for interest only investment loan.

    • May I ask which lender?

  • i am currently unemployed for nearly a yr and even though i can keep up with my repayments, I dont think any banks will let me refinance without a payslip, or does anyone here knows of any bank that will? Currently on 3.52% :(

  • +2

    the benefit may not be worth it for your comparatively low loan size ($170k), after factoring in all the fees and headaches. Also most of the good interest rate loans have clauses that state minimum loan size is $200k, sometimes $250k.
    Best way to go is to find some good loan offers and then ring your bank (ANZ) and tell them you'd like them to reprice your loan to something more competitive. Might get a good saving just from 1 phone call.

  • Thanks very much guys. I did think my loan amount could be an issue. I might just make that phone call. I know I have a fixed interest rate until august. Is this the same as being in some form of locked term not giving me the option to negotiate?

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