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  1. #31
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    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.

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    sunnygirl79  (07-06-2016)

  3. #32
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    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.

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    sunnygirl79  (07-06-2016)

  5. #33
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    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.

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  7. #34
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    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
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    Pm'ed for privacy @witherwings

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    witherwings  (07-06-2016)

  10. #36
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    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
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    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
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    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.

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  14. #39
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    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.

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    sunnygirl79  (07-06-2016)

  16. #40
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    @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.

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