Hi all. Does anyone know any good methods to have the bank reduce my minimum mortgage repayments eg. refinancing out to 30 years, and switching to Interest only loan payments.
Thanks in advance for your replies.
Refinancing to a more competitive rate is another way.
Cheers
Jamie
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]
Call the bank and ask to speak to the discharges team. Tell them Advantedge is offering 5.38% if you refinance. See if they can come close to it and if possible match it (highly unlikely though).
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hard to comment without a bit more information on the actual numbers.
If merely reducing your repayments over the next 12 months is a goal then you could look at a 1 year fixed at 4.99%.
Doing this interest only would make a difference to your current expenditure.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Is it a PPOR or an IP?
If an IP you may be able to submit a PAYG tax variation so that you get that part of your tax return related to the property back in your pocket each week, rather than at tax time. Something like that would improve your weekly cashflow without actually changing your mortgage repayment.
Accountant types on here will be able to go into more depth on that subject…
Otherwise, as you said, look at refinancing to an interest only loan or at a lower rate.
Also, look at what kind of other incentives come with the loan product. For example, with our PPOR home loan we can reduce our repayments by 50% for 6 months if my wife has kids. If that is your situation, then something like that could be useful for you. Others loan products have similar arrangements for financial distress, etc.
Course one of the best ways to reduce your PPOR repayments is to reduce the actual loan balance.
Often investing and getting a better investment rate of return than the borrowing rate you are being charged can produce excellent results.
Make a provision for CGT from your profit and place the balance in your offset account.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks everyone who provided constructive information regarding my initial post/question!! Have a great day!!
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