I am about to enter the fray and want to set up a line of credit ($300–$400K).I would appreciate any feedback on who is offering the best deals and details of int rates, fees etc
Thanks
PunterNo other answers, so will give my two cents worth. I have a LOC with a couple of properties through Westpac – they have a professional package you can check up on on their web site. I stay with Westpac at the moment due to my excellent manager. She is creative and makes the figures work – keeps within the boundaries, but gets what I want to achieve my goals.
CDCastle Dreamer
(You’ll never go wrong if you never go anywhere – have a go!”
Have you looked at ANZ’s Equity Manager? Last time I looked it was 7.07% and you could get a 0.60% discount off this by joining the professional package – making it 6.47%.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Castledreamer and Teeryw
Re Westpac LOC — Is it better than ANZ offer?
Regards
PunterPunter
The best two LOC’s are:
1. ANZ (Equity Manager) = 0.60% off = 6.47% (as Terry noted)
2. St George (Portfolio) = 0.70% off = 6.47%Westpac will give you 0.60% off = 6.62%.
Cheers
Stu
Being a little dubious of LOC myself I generally have stuck to a offset account. Of course if I were to enter the property investing market right now I would probably take a LOC out instead.
http://www.yourmortgage.com.au/rates/
You can search by state and type of loan you want on this site. It is fairly well maintained. They also have a separate links section for you to look up the lender that interests yourself.
http://finance.ninemsn.com.au/money/loans/calculators.asp
Use the Moneyfinder tool, I have found most of the information to be correct when I looked but usually there was always something a little bit ‘off’ in most the loans on there. Things like wrong fees or quoting Nil when there is in fact fees associated with the loan. Still it is another site that can help you look for the loans you need easily.
Thanks sizzling_duck. I will look at those sites.
Regards
PunterHello everyone,
Can someone please tell me how a line of credit works, say on your PPOR Eg owe $140000 valuation $280000 fixed for 5 years at 6.19%.(Suncorp)
Thanks DomHello DAAJ,
You can’t fix the rate on a line of credit. It is always variable. The reason is that a LOC balance is always changing depending on how much you deposit into the LOC and how much you withdraw (like a large credit card you simply have a limit i.e. 80% of the security property value). If a LOC was fixed there would be no guaranteed return for investors purchasing fixed rate mortgeg bonds – because the income would vary depending on how much of the facility was used by the borrower using a LOC i.e. the balance. If the balance was only $100K but the linit was $200K, there would only be half the return. But the investor is supposed to be guaranteed a return on the full amount invested. Therefore this would not work.
This is my understanding anyway…Mortman,
Thankyou for reply and Just to clarify things the loan is already fixed $140000 for 5 years.But i dont have to break the loan to get access to the equity or do I?
And if i dont would i have 2 seperate loans 1 with $140000 and 1 with the equity obtained say $50000.(Credit card)
Cheers Dom[biggrin]Yeah sorry,[blush2]That’s right. Just get a seperate LOC with a limit of your choosing assuming it can service and you don’t end up borrowing above 80% i.e a LOC with an $84K limit.
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