+ Reply to Thread
Page 4 of 5 FirstFirst ... 2345 LastLast
Results 31 to 40 of 41
  1. #31
    Join Date
    Feb 2009
    Location
    my house
    Posts
    17,695
    Thanks
    1,391
    Thanked
    7,284
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 postsRuby Star - 15,000 posts

    Default Home loans

    Quote Originally Posted by witherwings View Post
    I honestly think you could get an immediate saving by switching lenders. There shouldn't be any significant fees for switching lenders; that practice has been abolished years ago.

    Why would you fix with a lender that has high variable rates to begin with? Switch to a better/more competitive lender and then look at fixing with THEM.
    Again, sometimes people can't move.

    We are stuck with our lender because my husband is self employed and I'm part time. Not even teachers mutual bank who I'm with will come near us with the amount of our current mortgage so we are stuck with ANZ and had to negotiate for a better deal with them.
    Last edited by BigRedV; 07-06-2016 at 06:11.

  2. The Following User Says Thank You to BigRedV For This Useful Post:

    sunnygirl79  (07-06-2016)

  3. #32
    Join Date
    Mar 2014
    Posts
    1,685
    Thanks
    3,503
    Thanked
    974
    Reviews
    0
    Achievements:Topaz Star - 500 posts
    Quote Originally Posted by witherwings View Post
    I honestly think you could get an immediate saving by switching lenders. There shouldn't be any significant fees for switching lenders; that practice has been abolished years ago.

    Why would you fix with a lender that has high variable rates to begin with? Switch to a better/more competitive lender and then look at fixing with THEM.
    Switching lenders is easy if you have the right LVR (loan value ratio). Values have tanked where I am which put us over the max % for lending dueto the properties "new" lower value. This means although its technically easy for us to change lenders insurer - we will still cop the Mortgage Insurance fee - payable AGAIN to another lender which is about $20k! We just cant afford to do that...

    Its stupid. We have paid it once already and dont get it back. Plus there are only 2 or 3 players in the MI market so its likely that we will be paying the SAME MI a second time for what they have already covered - just through another lender! Its crazy!
    Last edited by KitiK; 07-06-2016 at 06:08.

  4. The Following User Says Thank You to KitiK For This Useful Post:

    sunnygirl79  (07-06-2016)

  5. #33
    Join Date
    Aug 2009
    Location
    Sydney
    Posts
    2,086
    Thanks
    1,285
    Thanked
    1,180
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    Quote Originally Posted by BigRedV View Post
    Yes I know, she already said she was going to ask them.

    But sometimes people are stuck with their lender. She's currently on maternity leave with a $500k mortgage so there's probably not much chance of being approved with another lender.
    Ah ok, fair enough. I missed the part about her being on maternity leave. Yea that obviously makes a difference.

  6. The Following 2 Users Say Thank You to witherwings For This Useful Post:

    BigRedV  (07-06-2016),sunnygirl79  (07-06-2016)

  7. #34
    Join Date
    Aug 2009
    Location
    Sydney
    Posts
    2,086
    Thanks
    1,285
    Thanked
    1,180
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    Quote Originally Posted by KitiK View Post
    Switching lenders is easy if you have the right LVR (loan value ratio). Values have tanked where I am which put us over the max % for lending dueto the properties "new" lower value. This means although its technically easy for us to change lenders insurer - we will still cop the Mortgage Insurance fee - payable AGAIN to another lender which is about $20k! We just cant afford to do that...

    Its stupid. We have paid it once already and dont get it back. Plus there are only 2 or 3 players in the MI market so its likely that we will be paying the SAME MI a second time for what they have already covered - just through another lender! Its crazy!
    Just out of curiosity, where did you buy and how long ago?

    I edited my previous response to sunnygirl about her valuation - if she bought 3 years ago, that was likely to be the bottom of the market so values may have increased significantly for her. Depends on where she bought I guess..

  8. #35
    Join Date
    Mar 2014
    Posts
    1,685
    Thanks
    3,503
    Thanked
    974
    Reviews
    0
    Achievements:Topaz Star - 500 posts
    Pm'ed for privacy @witherwings

  9. The Following User Says Thank You to KitiK For This Useful Post:

    witherwings  (07-06-2016)

  10. #36
    Join Date
    Nov 2010
    Posts
    5,747
    Thanks
    3,825
    Thanked
    3,655
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Thanks ladies I am not looking for personal financial advice as such obviously there is a lot of personal information to consider etc and we have our (very legitimate) reasons why we may not be able to switch lenders at this point in time. And we may not be able to even in 12 months - but that's for us to investigate and based on our personal circumstances.

    I was just curious as to splitting the loan fixed/variable as this isn't something we have done before, and wondered whether others have this arrangement working in their favour.

    We all have different circumstances to consider its not as black and white as who will give us the best rate.

    We absolutely bought in the bottom of the market and had our home revalued last year at over 80K more than what we bought it for. Just need it a little higher to make shopping around possible, and in my experience this can depend on who values our home (previously we went through a mortgage broker and got 3 valuations within a week which varied by about $30K).

  11. #37
    Join Date
    Nov 2010
    Posts
    5,747
    Thanks
    3,825
    Thanked
    3,655
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Quote Originally Posted by witherwings View Post
    I honestly think you could get an immediate saving by switching lenders. There shouldn't be any significant fees for switching lenders; that practice has been abolished years ago.

    Why would you fix with a lender that has high variable rates to begin with? Switch to a better/more competitive lender and then look at fixing with THEM.

    ETA: it's not exactly a gamble waiting for rates to drop .. When fixed rates are offered below the variable rate it means that banks expect the cash rate to drop. When fixed rates are above variable, the expect cash rate to rise. It's just economics.

    Having said that, if you are looking at fixing only a portion of your loan I guess you would get the best of both worlds, but you can shop around now for a better rate with different lenders, and each bank will do their own valuation. If you bought 3 years ago at the bottom of the market, you should definitely have significant equity now.
    Oh and I fully understand the part about banks offering fixed rates below variable when they expect a drop. I absolutely have an understanding of basic economics.

    But some of us prefer to take a more conservative approach so that our immediate future doesn't rely on what's happening with interest rates. And shopping around is not always possible or easy. I don't think it's a black and white approach like you're making it out to be. We all have personal circumstances and reasons above and beyond shifting interest rates to consider.

  12. #38
    Join Date
    May 2008
    Posts
    891
    Thanks
    125
    Thanked
    256
    Reviews
    0
    Achievements:Topaz Star - 500 posts
    I haven't read all the replies...

    We fixed half our loan and then offset the variable. It works for us. We can't make many extra repayments to the fixed loan, but we just work hard at paying off the variable until the fixed term comes up and then We reconsider. Our fixed is coming up in the next couple of months and we have recently sold an investment property, so we are keen to refinance so things are working better for us. We will most likely pay some of the loan off (rather than the $$ just sitting as offset) and then halve the remaining amount again (half fixed half variable).
    We had our investment property half fixed and there was no fees for us to pay out the loan.

  13. The Following User Says Thank You to Shebes For This Useful Post:

    sunnygirl79  (07-06-2016)

  14. #39
    Join Date
    Aug 2014
    Location
    Melbourne
    Posts
    1,351
    Thanks
    558
    Thanked
    728
    Reviews
    5
    Achievements:Topaz Star - 500 posts
    We have 1/4 of our loan variable @ 4.45, and 3/4 fixed @ 4.24. The larger portion has the lower rate, which ensures we have enough cash flow. On the smaller side, we are able to pay down as much as we want. We can also redraw with no penalties should we have an emergency.

    We are with NAB Private.

  15. The Following User Says Thank You to ilex For This Useful Post:

    sunnygirl79  (07-06-2016)

  16. #40
    Join Date
    Feb 2012
    Posts
    3,521
    Thanks
    1,318
    Thanked
    1,574
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    @sunnygirl79 you should definitely get in touch with an ANZ mobile lending consultant. We refinanced from Rams to Anz just over 2 years ago the week Dd was born and I was already on mat leave. Our finances were shocking at the time but the lovely consultant made it happen. They will give you a very honest opinion about whether or not you will be able to do it. They work really hard to make it possible as they rely on the commission.

    According to tv this morning, economists predict that the reserve bank will drop the rate by 0.25% in the next 8 weeks and that some of this may be passed on. An interest rate of 3.75% is nothing to winge about considering 4 years ago they were up around 7-8%. I would be happy with that for two years even if it rates did drop in a few weeks. A lower rate will be more affordable while you're on mat leave so it's worth having a chat to someone about it.

  17. The Following User Says Thank You to Ngaiz For This Useful Post:

    sunnygirl79  (07-06-2016)


 

Similar Threads

  1. Home and Away
    By moosey in forum Movies / Music / Books / TV Chat
    Replies: 28
    Last Post: 01-02-2016, 13:40
  2. Stay at Home mum wanting to start business from home
    By lel in forum General Parenting Tips, Advice & Chat
    Replies: 12
    Last Post: 24-06-2015, 14:48
  3. Home and Away
    By babylove81 in forum Movies / Music / Books / TV Chat
    Replies: 115
    Last Post: 09-06-2015, 21:12

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
free weekly newsletters | sign up now!
who are these people who write great posts? meet our hubbub authors!
Learn how you can contribute to the hubbub!

reviews
learn how you can become a reviewer!

competitions

forum - chatting now
christmas gift guidesee all Red Stocking
Mother and Baby Shop
Save $$$ during our Christmas Sale Mother and Baby Shop
Great prices on Schoenhut kids pianos, toys, baby clothing as well as big brands like Pigeon, NUK, Cherub Baby and many more. Sale starts on 1 November 2016 and ends on the 27 December 2016. Hurry! Place your order today!
sales & new stuffsee all
Bub Hub Sales Listing
HAVING A SALE? Let parents know about it with a Bub Hub Sales listing. Listings are featured on our well trafficked Sales Page + selected randomly to appear on EVERY page
featured supporter
Transition into Parenthood / Calmbirth Sydney
Julie's Transition into Parenthood and Calmbirth courses for pregnant couples will get you ready, prepared and organised for the wonderful birth of your beautiful new baby. Birth Support Doula training provided in 2017 open to all. Call 0401 265 530
gotcha
X

Pregnant for the first-time?

Not sure where to start? We can help!

Our Insider Programs for pregnancy first-timers will lead you step-by-step through the 14 Pregnancy Must Dos!