Sub 100k Homeloan That's Half Decent?

tunzafun001 on 11/10/2018 - 01:11
Last edited 11/10/2018 - 21:00 by 1 other user

Looking to sell my place, but current bank is only offering a 4.1% fixed rate, and since I want to sell, a variable is what I need.

Property is in Whyalla and house values have diminished significantly. CBA have only offered me a loan of $56k at 70% LVR..ouch!

Current bank said the loan was originally $150k+ which would be 3.69% But with latest valuations, best they can offer is 5.8%

Always good to see a bank (Credit Union in fact) there to boot you in the balls when you are down.

Anyone know a decent loan under 100k? Without huge fees?

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  [Deactivated] on 11/10/2018 - 01:47

  Have you tried RAMS yet?

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  whooah1979 on 11/10/2018 - 06:13

  +4

  boot you in the balls when you are down.

  It's responsible lending. Don't take it personally.

  • 

    HighAndDry on 11/10/2018 - 13:15

    +1

    Yup. Blame the people complaining about banks lending 'too easily' when they were happy enough to borrow in the first place.

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  pasey25 on 11/10/2018 - 06:25

  Are you using a broker?

  • 

    tunzafun001 on 11/10/2018 - 12:40

    -2

    I was, a broker set up this loan. However, I have fast learnt if u want to renegotiate a better rate in the future, ie get close to what they are offering new business, then u have no hope if you went with a broker (as they are getting at least 0.15 to 0.3)

    So doing the refinance myself.

    • 

      HighAndDry on 11/10/2018 - 13:16

      +2

      That's…. not how that works. Brokers get better rates than banks offer to the public in many cases. If the broker likes you or needs to make up numbers, they will often even dip into their commission.

      I've yet to see a case where going with a bank directly has been better, save for people who work at the bank and get employee rates. (and even then, brokers come very close sometimes).

      • 

        tunzafun001 on 11/10/2018 - 14:11

        -1

        I think maybe if you are a newbie, then this may be the case. But, if you know your figures, and work with a bank manager you have an extra 0.15 minimum up your sleeve to work with (simple numbers game really). I used to go with this broker as they are very valuable for newbies with many loop holes etc that most wouldn't know about. Mine took the set up fees on the chin with my recent loan, but now trying to reneg the rate I'm offered 5.8 and advised to speak to my broker about this, you cant deal with us direct (a new customer would get 3.69). broker says, they wont negotiate.

        Anyway, just my opinion. Again, if you are new, go a broker all the way. But for the experienced, love to see a vote to see who has been successful in getting close to negotiating new customer rates with /without a broker.

        • 

          HighAndDry on 11/10/2018 - 15:12

          @tunzafun001:

          But, if you know your figures, and work with a bank manager you have an extra 0.15 minimum up your sleeve to work with (simple numbers game really).

          Yeah, it's not a simple numbers game unfortunately. Because if word gets out that they're offering broker-rates direct to the public, 1. that can affect agreements and the bank's relationships with brokers, and 2. they will encourage a flood of customers all demanding the same rates.

          The bank manager has a lot of pull, but broker relationships and general marketing strategies are set by the head office.

          But for the experienced, love to see a vote to see who has been successful in getting close to negotiating new customer rates with /without a broker.

          I'd also like to know, but for the normal borrower (i.e. not someone with six-figures in a commsec fund).

        • 

          Sofie519 on 12/10/2018 - 19:27

          @tunzafun001: Not actually how it works. Since the lenders have a correlated cost decrease in wages/employee as the broker industry continues to write the majority of the industry's loans ..

          Lenders tried at one stage promoted inhouse mobile lenders, providing afterhours service, come to you .. etc however it failed miserably and was largely scaled back.

          The commission paid to brokers on actual business is a far better business model than having to pay fixed wages regardless of volume. So your premise that lenders automatically save .15%-.3% trails is actually incorrect. It was already proven that the upfront and trail model saves the lender considerable in fixed wage cost.

          • 

            tunzafun001 on 13/10/2018 - 10:22

            @Sofie519: Sounds good to me. But I'm just a customer on the end. Over 17 years and 6 lenders, only 1 renegotiated the rate and it was one I did myself

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  Nugs on 11/10/2018 - 06:33

  "since I want to sell, a variable is what I need."

  why?

  .

  • 

    bohn on 11/10/2018 - 07:25

    break costs when selling.

  • 

    tunzafun001 on 11/10/2018 - 12:41

    Fixed rates are exactly that. I will cost you potentially thousands if you sell in the fixed period.

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  onevstheworld on 11/10/2018 - 09:30

  +6

  If you're about to sell, why do you need to refinance the loan?

  • 

    tunzafun001 on 11/10/2018 - 12:41

    Probably selling in the next 9 months or so. My loan just came off a 3.7 fixed rate. Is now 5.85 variable, or can refix for 2 yrs at around 4%, but then get flogged for break costs.

    • 

      ihbh on 11/10/2018 - 20:41

      5.85% variable

      What the heck?

      Can you provide more info. Current lender, purchase price and when, current valuation, etc.

    • 

      onevstheworld on 11/10/2018 - 21:51

      How much money will you actually save by going to that lower interest rate?

      You do realize there are more costs to setting up and discharging a loan than just the fixed interest break fee? You better check what you're up for. Otherwise the fees to discharge, setup and discharge this mortgage may cost more than what you're actually saving.

      https://www.finder.com.au/home-loan-fees

      • 

        tunzafun001 on 11/10/2018 - 22:30

        Basically I can't find anyone who will lend under $150k for a decent rate.

        I think I'm just going to transfer all to Cba. Total loan is $410k, but unfortunately across 4 properties.

        3IL, 1 x ppor. Was hoping to keep ppor seperate, but it's value has dropped below $150k. Mining town properties that have taken a beating. So with such a small loan with multiple fees for each property is even worse. Cba are offering 2k cashback, with just over 2.5k in fees. All up I'm pretty much even getting a mix of 3.74 fixed for 2, and 3.94 variable. So I had a 4.14 fixed loan, it will now be variable..if the variable rate goes up again before I sell, yep I'm worse off. But at least I can sell if opportunity presents

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  Sofie519 on 12/10/2018 - 16:20

  +2

  You haven't really given enough info, but here goes.

  If CBA is offering you $56k at 70%LVR, does that mean your property only came back with a valuation of $80K? So you wont be able to borrow $100K against it unless you cross collateralize it with at least one other property.

  Whyalla is a mining town right? You need to know the lenders postcode restrictions before you apply, otherwise you will be hit with a series of credit enquiries against your credit file every time you go to a lender. Some postcodes are restricted, and lenders are either not lending in the area, or limiting LVR，

  If you have intentions to sell in the next 9 months your interest saving might only be around 1300, after you factor discharge, setup fees etc, might just be saving a few hundred over the next 9 months. So weigh up your cost benefit factors and see if it is really worth your while.

  if you have 410K debt against 4 properties, what is the total value? Do you have enough equity for all loans to be secured against 3 properties, leaving Whyalla paid off, so when you sell in 9 months, you dont have to change your loans.