What options do we have please? Currently have 80k debt on an asset line at 6%. We had Phone banking appointment today where they anticipate being able to offer 4.65%- they are checking with the pricing desk. We have been clients for 35 years. He said a term loan would not be approved as husband will be on Jobkeeper and I will be on Jobseeker. Are we being snowed here? Term loan rate would be preferred as it would be 2-3% Can we drawdown on a term loan the way we have with the asset line? We are over 60 and considering using super to pay out the 80k but would like to have access to say 30k for emergencies. I hate paying $400 a month interest. (It was originally set up to finance a previous business and the interest was a tax deduction) Appreciate any input please.
Restructuring Asset Line- Can a Term Loan Be Used Similarly to an Asset Line?
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Need to consider that business loans are just about always priced higher than housing loans, even when backed by residential security (unless simply an equity draw) and LOCs are priced higher again. So not necessarily suckers, just the double whammy of business + LOC.
Yes I have one, commercial security. 6% is still very high, they were able to get it down to 4.65 in an instant.
First step would still be to speak to an independent broker rather than their bank, purely to get the interest rate down.
Can't answer your question re options as I would think they'd be pretty limited, taking your ages and employment statuses into consideration. But can answer re term loans; normally you can only draw down any additional repayments you have made, over and above your required repayment each month. If you used your super to pay it down (but not pay out completely) then you'd be able to redraw the available funds when needed but the amount available will decrease each month by the equivalent of the PI repayment (assuming you have paid balance down to $1 and don't make any further payments). It's not like a LOC where you can draw it back to the original limit at any time.
wow 6%, you have been
clientssuckers for 35 years.What's the security & its value on the line of credit?