Hi everone, I was wondering if someone could approximate the costs involved in refinancing, to draw on the equity in our home for deposits for IPs & what are the implications when we sell our home, if any?[
]Hi Marie
Some potential costs may include:
Settlement fee Approx. $50 – $100
Title searches Approx. $20
Mortgage registration and deregistration (govt charge) $128 per property
Discharge fee** $150 – $300 per loan
New application fee ?** Discharge fees should be confirmed with your lender as these costs can vary significantly from lender to lender and product to product. These costs should be stated in your original loan documents. This is probably the most substantial cost.
Best to ask your lender/broker for a full list of fees.
Very important to ensure you are aware of all costs before committing to the refinance.
Good luck.
Cheers
Stu
P.S. Oops – selling house – be aware of all discharge fees and/or early repayment (break fees) associated with new loan. If you sell you may have to pay these fees so best to know what you are getting into upfront.
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at http://www.prosolution.com.auAlso, make sure you go with a couple of different lenders.
Do not use the same lender that has your mortgage on your PPOR for your IP.
Also, make sure you go with a couple of different lenders.
Do not use the same lender that has your mortgage on your PPOR for your IP.
What are the drawbacks of using the same lender?If you have one lender for your PPOR (maybe a mortgage and a line of credit for deposits), this lender can not touch your IP’s if something was to go wrong and visa versa. If you use this strategy the lenders with the Investment properties can’t touch your home, if something was to go wrong.
If they are all together and let’s say your PPOR is valued at $400000 with a mortgage of $100000 and your IP is valued at $200000 with a mortgage of $150000, which property would you take?
If you have your PPOR seperate it’s safe.
i would think it would be a smart thing to get the deposit from the same bank that you have your current morgage with to save on fees then once you have done that then go and search for a new loan for IP…mind you i am just new to this myself but thats what i intend to do…it seems like the smartest thing for me to do because i have only had my house loan for 1 and a half yaers so i will be hit by a few fees.
Hi all,
An option I am discussing with my lendor, is keeping the existing loan and getting a seperate loan for the extra, like a split loan…
This way there are no break costs, no pay out fees, no discharge costs, only a new establishment fee, $700ish
Currently I have a portion fixed, some variable and have applied for a third amount to be a line of credit with the equity. I thought I was going hear “tell ‘er she’s dreamin'” but instead the valuer is visiting on Wednesday to see if the equity is sufficient…
Wish me luck!![
]Victoria
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