Hi All
Had a phone call from citibank on thursday with reguard to getting a home loan.they sid for $100k it would only take me 2 years to pay it off and i would save $80k. They are sending someone around to chat about it on Thursday. Does anyone have any ideas of how they can do this and any special questions i should ask so i don’t get caught out. any info would be great.
Probably their Line of Credit product. You simply put all your money in the loan and leave it there as long as possible. Ask their interest rates, and be aware you can probably do this at a cheaper rate elsewhere. So don’t sign up till you do some research.
Terryw
Discover Home Loans
Parramatta
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Sounds like a mortgage minimization program,
It will probably involve living off the credit card during the interest free period, deposit all income into the LOC, and then pay down the credit card from the LOC before interest is incurred on the credit card.I have refinanced a lot of my clients OUT of this type of structure for the simple reason it has sent them into further debt.
It can work for some providing you can work a strict budget, but you do not need a LOC for this type of structure to work, and you definitely should not pay a fee to have it set up. cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
I think you also need to stop and think about the figures yourself.
Many of the mortgage minimiser type loans where sold by brokers wanting to sell Lines of Credit type business and as has been said can work but you need to operate a really struct budget and not spend outside this.
Your loan repayments for a traditional style loan are made up of principal and interest components the mix of which vary dependant on the loan balance. To repay a loan quickly there are a couple of ways to do so:
1) Increase the amount of frequency of your repayment.
2) Use a broker to shop around and establish a more competitve rate and product that suits your needs and requirements both now and into the future.
3) Utilise offset accounts offered or Professional Packages to save in both interest and fees.A final word of warning is remember a lender will not tell you whether one of the competition has a better product that suits your needs better. A independant broker can review your situation and make a suggestion from a myriad of lenders and products.
Richard Taylor
Residential & Commercial Finance Broker
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
I would recommend getting a broker that doesnt charge brokerage fees to compare rates/fees/repayments. Some rates/fees seem great at the start but you really should compare. Most brokers can compare between 30-50 products including all the major lenders without any time/effort involved for you.[hmm]
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]
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