Selling house but went to keep fmy fixed intrest loan, ideas?

Viewing 8 posts - 1 through 8 (of 8 total)

McNorman
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@mcnorman
Join Date: 2008
Post Count: 20
March 4, 2008 - 12:46 am
Selling 3 houses with for approx 230k profit after expences and tax,
the loans are – 130k variable intrest
700k fixed @ 7% for another 6 years
I will pay out the variable portion
but want to keep the 700k fixed at call somhow, for when in my veiw
the bargains start to come back into the market next year
is there a special account that i can use to put this money in to break even and still be able to pay the weekly payments?
I am with the NAB btw
Scott No Mates
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@scott-no-mates
Join Date: 2005
Post Count: 3,856
March 4, 2008 - 3:10 am
See the bank for what deal they can do for you ie at what price are they willing to buy back the fixed 7% loan? ie how much will the bank pay you to close a cheap loan?
McNorman
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@mcnorman
Join Date: 2008
Post Count: 20
March 5, 2008 - 1:49 am
thanx scott, ill giv it a go
if not ill keep as much as my income can afford
and try find a high intrest saver account to put it in
cruzinbud
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@cruzinbud
Join Date: 2007
Post Count: 23
March 5, 2008 - 6:46 am
I think you may be able to ask for a transfer of security into a savings account, that way keeping the low rate and only paying the difference between what you can get from a savings account (or similar product) and the 7%. Not sure though, but worth an ask.
Good luck:)
v8ghia
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@v8ghia
Join Date: 2005
Post Count: 871
March 5, 2008 - 11:26 am
Yup, you can use the funds in a term deposit sometimes as security no drama, although I must confess I am not sure how many do it for a fixed IR loan. more importantly, you should get some insurance NOW if that is you on the bike……..
Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
March 5, 2008 - 1:30 pm
Hate to say i think you have little chance in doing a security swap with a fixed rate from property to a term deposit account especially if it is over a week or two.
Richard Taylor | Australia's leading private lender
Anrobel
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@anrobel
Join Date: 2007
Post Count: 33
March 8, 2008 - 8:51 am
Hi Guys …. this post got me thinking – if i were to sell a property with a fixed rate loan which is crossed secured with another propery could i pay down the variable loan on the other property with the proceeds and keep the fixed loan, there is plenty of equity to secure the loan? Seems like a long shot as it would all be in my favour???!!! I'm with Colonial if that makes any diff.
Cheers
Firefly
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@kiz
Join Date: 2004
Post Count: 30
March 8, 2008 - 12:48 pm
Anrobel, i recently discussed this with my broker and he said as long as you have a 2nd property to secure the LOC against then it isn't a problem. Haven't had first hand experience myself though so i'm not 100% sure of the finer details. Definately worth a shot though