Hi there,
I'm looking for a second opinion from the excellent finance gurus we have in this forum.
Looking for finance for a block of land in VIC.
Before I outline the details, I've been offered Choicelend from a broker, at 6.55% but am horrified by the early exit fee of two notional monthly interest payments…. Surely there are better products for me out there. According to the broker, this is the most viable option for me. But I am hard pressed to believe this. Or am I missing something?
Land price: 240K (vacant land)
Fixed Build price: $190KStrategy to buy and hold for 3 years atleast – beyond there, it will depend on cirmstances at the time.
seeking finance for both land and construction at 80% LVR.
Thanks for your time.
mccoz
Mccoz
I think the Advantedge product is an excellent product and it is 1 notional repayment with Fastlend (Choice may have their own policy variations)
In saying that if you are wanting to sell within 3 years and exit fees are a consideration i can think of better valued products.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Homeside – funded by NAB (as is Choicelend).
6.57% – it's a pro pack so comes with offset ($10 per month). Early repayment fees also quite hefty – $1200 within first 4 years. Less than Choicelend though.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Or even better NAB direct and $900 exit fee in first 4 years.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Think you will find that Choicelend is actually a little higher than the 6.55% your broker has told you during the construction phase. Just something else you probably need to take note of.
Thanks everyone for providing some options and I can direct the way I'd like to go. NAB looks like a good overall product.
'
KimandGlen, the contract does state 6.55% but thanks for flagging. i will ask the question.I don't think what I am seeking is anything out of the ordinary (except maybe vacant land limits my choices?), I do feel dissapointed about the lack of choice provided to me by this particular broker. I feel he thinks he can lure me in by providing lowest interest rate options without considering the overall product to fit my needs. Anyway, I have the choice to to vote with my feet.
Thanks again,
Mccoz
Advantedge charge an extra 0.15% loading on vacant land and during the construction phase.
Wouldnt be too hard on your Broker as it is a good product maybe something that you didnt want given the rest of your circumstances.
Vacant land doesnt limited your choice.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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