what happens after fixed interest loan ?

Viewing 7 posts - 1 through 7 (of 7 total)

oneworld
Member
@oneworld
Join Date: 2010
Post Count: 23
June 8, 2011 - 8:24 am
Especially MB on this forum :
I fixed a loan for 3 years and it will expire soon. My circumstances have changed and only my wife is working. Will the bank automatically change the loan to variable, or will they ask us to prove our incomes & apply for variable loan again ? Any chance they call in the loan ?
Jamie Moore
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@jamie-m
Join Date: 2010
Post Count: 5,069
June 8, 2011 - 10:10 am
It will just revert back to variable. Chances are they’ll use the opportunity to try and increase your loan by sending out a letter offering you a LOC or something.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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Mick C
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@shape
Join Date: 2010
Post Count: 1,099
June 8, 2011 - 2:08 pm
As jamie mentioned ..goes stright to “STANDARD variable” –important! – meaning it be the standard rate without the discount ( which NOBODYS goes on…) so you will either have to go for
1. A basic variable rate
2. A package rate
Either way; the rates are negotiable,
Which bank is it with?
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Same Banks. Better Rates. Served With a Passion.
ksherwell
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@ksherwell
Join Date: 2007
Post Count: 125
June 9, 2011 - 3:38 am
Hi Oneworld
Are you with a major lender?
It may be worth refinancing depending what rate they re divert you too. If its under 7% you are ok, if not it may be worth refinancing and securing a cash back which a number of lenders are giving until the end of June.
oneworld
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@oneworld
Join Date: 2010
Post Count: 23
June 9, 2011 - 3:58 am
thank you very much guys, as long as they don't force me to fire sale.
yes Kane it is with one of the big 4.
ksherwell
Member
@ksherwell
Join Date: 2007
Post Count: 125
June 9, 2011 - 4:00 am
Thats ok oneworld
Let us know what rate you are on and see if the forum can get you the best deal.
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
June 9, 2011 - 10:09 am
The cashbacks sound enticing but for the most part they generally only cover the switching fees (the costs of leaving one lender and starting with another). I’m not saying an external refinance isn’t worth looking into – and the cashbacks certainly help, but it’s important to note that most people won’t see much (if any) of the cash.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone Me
Mortgage Broker assisting clients Australia wide Email: [email protected]