Hi everybody!
My girlfriend and I are in a confusing situation at the moment and were wondering if the helpful forum members of PI.com could give us some advice Here’s the run down:– My girlfriend and I own two properties..
– The title for property number 1 is under my girlfriend’s name. Value = approximately $250k.
– The title for property number 2 is 95% in my name, 5% in my girlfriend’s. Value = approximately $340k.
– Current mortage with CBA = $412k. Interest rate is @ 6.4% fixed for another 2.5 years (Rate Saver account).
– Our combined income before tax is $90k/year.
– Current monthly repayments = $2604.
– Other loans: Personal loan with St. George = $10,000 (no credit card debt! ). Monthly repayment for this is $250.
– We are currently living in property number 1 and renting out property number 2 @ $240/week.We are wanting to refinance and hopefully go with St. George but were wondering if this was a financially good idea at the moment (we think we have a decent interest rate at the moment with the CBA). The reason why we want to refinance is because the mortgage on both the properties is P&I and we want to separate them or make the loan for property 1 P&I and the loan for the investment property 2 to be IO. If anyone can help that’d be great.
We’re also looking at selling property number 1 and buying another property to live in which is closer to the City for around $300-350k. I will be living in it and want to make use of the FHOG but I’m not sure if there is any way possible of doing this..
I’ve got an appointment with a St.George loan manager tomorrow but I thought I’d ask here first because you guys usually know more than the folks at the banks [strum] Any help is much appreciated!!
Cheers [king]
G’day Newgen,
Well you’d be able to borrow to refinance with just about any bank based on your financials.
However you are on a good rate, and you would probably have to pay a fee of $700 to Commonwealth to get out of your mortgage, then there is also new estab fees.
Why not just ask for a restructure your current lending with the Commonwealth?
There is the bonus of getting an introductory rate from the new bank though. St George offers 5.89% for the first year and then an ongoing discount of 6.57% after that (.5% discount).
Fixed rates are dropping at the moment. You might want to consider locking some of these in at the moment.
Liz
Mortgage Lender
Newgen,
I suggest you call the CBA and ask for the break costs on your fixed loan,
If you do refinance with St George, consider the pro package @ 6.37%Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Newgen,
regarding the FHOG, if property #2 is 95% in your name you might not be elegible for the FHOG!Please include this in your calculations becuase you might end up with a red-faces moment!
Cheers
C@34
Originally posted by calvin@thirty4:Newgen,
regarding the FHOG, if property #2 is 95% in your name you might not be elegible for the FHOG!Please include this in your calculations becuase you might end up with a red-faces moment!
Cheers
C@34
Hi there
Property number 2 is 95% in my name and 5% in my girlfriend’s name and is an investment property. Neither of us have lived in it since it’s purchase in February this year. I was under the impression that I would still be eligible for the grant ?Cheers
Newgen,
I was led to believe it is the otherway. The FHOG is just that, to help people struggling to GET their FIRST HOME.
Please correct me if I’m wrong, but in my case where my wife and I have bought a house and filled in the application, it is quite specific. IS THIS THE FIRST HOUSE YOU OR YOUR PARTNER HAVE BOUGHT? HAS THIS HOUSE BEEN BOUGHT AFTER Jan 2005?, etc.
I just want you to double check! Not that you sell your house and find out that you can’t get it.
MAKE SURE!
Cheers
C@34
I’m led to believe from posts here on the forum that you can purchase an IP and still get the FHOG later, as long as you haven’t lived in the IP..Check on the FHOG web page for your state to confirm this though!
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorRead the legislation for yourself at:
http://www.mortgagehunter.com.au/first-home-owner-grant.html
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 9853 year fixed rate – 6.69%
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanx Simon,
it looks as though I might have been correct, sorry Newgen.To be eligible:
At least one of the applicants must be an Australian citizen or have permanent residency in Australia.
None of the applicants must have previously owned a home anywhere in Australia.
Applicants must occupy the home purchased as their principal place of residence.
If an applicant’s spouse or de-facto partner has previously owned a home, no grant will be available.
Except in the case of legal disability, applicants must be natural persons (that is not a company).
Everyone with an interest in the home is considered an applicant.Cheers
C@34
Strange..
I did the eligibility test and it gave me this:Based on the information you have provided you may not be eligible for the grant because you answered:
‘No’ to the question:
Has each applicant on or after 1 July 2000, either:
(a) entered into a contract for the purchase of a home in New South Wales;
OR
(b) entered into a contract to have a home built in New South Wales;
OR
(c) in the case of an owner-builder, commenced construction of a home in New South Wales? (ie. laying of foundations)I thought that answering NO to that would make me more eligible?
Ahh well, if I can’t get the FHOG it does make working out my finances a lot easier. [blush2]
Looking on the bright side (as such), you found out now and not when you needed the money after signing the conrtact.
Cheers
C@34
Newgen,
You ARE definately eligble for the Grant.
Please note: If you bought your investment property prior to July 2000 you are not eligible. If you purchased after this date and have not occupied it you are still eligible.
All these details are on the OSR website you just need to read it carefully:
http://www.osr.nsw.gov.au/portal/page?_pageid=33,63398&_dad=portal&_schema=OSRPTLTYou need to answer YES to the question you refer to because they don’t give the grant to people who have not found a property yet. For eg. I am a first home buyer (even though I have an IP – which is fine because I bought it after July 2000) and I am going to purchase a house but I have not “found” the right house yet. Well in that case you would answer NO and confuse yourself. Basically they wont give you the money until you have found the house and signed the contract, the money is only paid on or after settlement of the purchase.
Basically they are asking in that question – “Are you actually buying a house?” You should think in “futurespect” and say YES
Hope this clears that up. I have made extensive posts months ago about this issue. The FHOG is for First Home Owners in the sense of your first LIVE-IN home.
Newgen the bad news is that you will not be eligible for first home plus, which is the stamp duty concession. This has a slightly different ruling and with your IP you will not be eligible.
Hope this clears it all up for you…
Liz
Mortgage Lender
Yayy!!! Lizzy, I’d kiss you but… yeah [blush2]
I had a conversation with one of my mates about this yesterday. Everyone seems to think that my girlfriend and I are ‘rich’ because we have two properties in our portfolio. What they don’t seem to realise is the fact that the bank owns them not us [specs] When I brought up the topic of the FHOG I was kinda hinted that because I’m ‘well off’ I shouldn’t be trying to get the grant. My argument was that I didn’t get to where I am by slacking off.. or from living off the Government. No siree! My girlfriend and I have worked our arses off to get where we are and we genuinely believe we deserve the grant. We don’t believe that we should be penalised for our ‘good’ control of our finances. (I hope that came out right..). [strum]Anyways, the meeting with the St. George rep yesterday went really well! The banker I spoke to was quite knowledgable and showed a genuine interest in our situation.. he even came across ‘excited’ at times when he worked out different/better options for us! haha.
Basically he couldn’t match the fixed rate we’re on at the moment (6.4% for another 2.5 yrs or so). But could put us on a 6.37% variable rate.. this is what’s holding us back at the moment. We want security and to know what the repayments are going to be.. so the fixed rate is our preference. I also looked at the 5.98% (?) introductory rate fixed for 1 year… if anyone can comment on these packages that’d be great because we’re more confused than a mullet swimming in a bucket. [strum]
Oh I forgot to mention, we really want to split the loans and make them both IO with the option of paying off the principal at any time without being penalised for it.
Thanks guys and gals!
Newgen,
Well I think your mates comments are unfounded and are made out of jealousy. Your claim of the FHOG is completely legitimate and legal so tell them to stick a cork in it and buy a house already…
Fixed rates are coming down at the moment. There are some good ones coming on the market, though for 3 years plus I doubt you’d get 6.4%.
Sounds like a good guy you’ve got at St George, someone who is both knowledgeable AND enthusiastic a rare combination!
Good luck!
Liz
Mortgage Lender
Morning Newgen,
Awesome news! Congratulations, please accept my appologies for creating the doubt. I was going of the advice given to me (in WA – not sure if the regs are the same over here) and it is the reason why we didn’t get into an IP first. Perhaps we got the wrong info as well.
Again, my appologies for leading you astray.[blush2]Cheers
C@34
Hi Calvin!
Don’t be silly! You were trying to help [biggrin] Plus with all the conditions and eligibility rules etc it’s pretty confusing. I’m glad you brought it up actually, I think it’s always better to be safe than sorry [medieval]Cheers mate [thumbsup2]
). Monthly repayment for this is $250.
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