Hi All,
Our mortgage broker who normally organises our finance has just been in a really bad accident so we’re kinda lost as to who to get a home loan from.
My sister in law works for a bank (i won’t name which bank as i don’t want to breach the forum’s advertising rules) but she told me about a “12 months Discounted Variable” home loan package with an interest rate of 5.99% (variable) for the first 12mths and then it reverts back to the standard variable. If reserve bank increases their rates, then the 5.99% also gets increased accordingly.Break cost is $700 if we pay out loan before the 12mths.
Might help if i told you what we intend to do with this house we just bought huh! We just bought a house at what we think is a good price of $350K and intend on selling it off to another investor in 12mths time. Now, whether we can sell it or not is 1 thing but we’ll definitely be putting it back on the market after some value-adding, in about 12mths time.
Having said this, do you think the above home loan package sounds good given that we intend on selling the house off in 12mths anyway???
Does anyone know of a better deal out there that they can share without breaking advertising rules???
Many thanks in advance.
Kim
The revert rate on honeymoon rates is a killer, in your case you plan to sell after 12 months so this may or may not be an issue, if for what ever reason you don’t sell then you will be stuck with a much higher rate after the honeymoon period expires.
An alternative may be a discounted variable rate for the life of the loan currently approx. 6.62%, with lower break costs. 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.
Hi Kim,
I may be just paranoid here, but everytime I hear something like honeymoon rates, gold credit cards, frequent flyer points etc from any finance company I either go “NO” right away or (if I feel like it) take my time and do the maths carefuly at home myself.
Just my 2cents.
Dan
Kim,
Honeymoon rates usually lead onto a higher priced product afterwards – I rarely sell them.
If you can advise where you are perhaps I can suggest a broker to help?
Cheers,
Simon Macks
Residential and Commercial Finance Broker[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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