Carrot01 Posted 14September, 2022 Report Share Posted 14September, 2022 Hi, I'm on a 6% LVR on a 1mill property in Perth -my varible interest rates on the rise again, think I will be at 4.5% by nov and I rekon its got a bit more to go after that. I doubt I have any chance in refinancing, Should I just fix it now or pull say, $300k out of redraw, refinance for a lower rate then put the $300 back in? I'm going to play with a mortgage calculator soon, so might answer my own question, but I'm sure theres plenty of experts here that might reply Thanks Quote Link to comment Share on other sites More sharing options...
WB997.2GTS Posted 14September, 2022 Report Share Posted 14September, 2022 Is that 6% or 60%. Quote Link to comment Share on other sites More sharing options...
Carrot01 Posted 14September, 2022 Author Report Share Posted 14September, 2022 6 Quote Link to comment Share on other sites More sharing options...
sleazius Posted 15September, 2022 Report Share Posted 15September, 2022 The highest rates of refinancing ever just happened in the last month. I'd say you probably can easily refinance, just get a broker and find the best deal with another mob. Lenders are only too happy to cut each other's throats to get market share. Quote Link to comment Share on other sites More sharing options...
Carrot01 Posted 15September, 2022 Author Report Share Posted 15September, 2022 yeah, but on such a small loan?? Quote Link to comment Share on other sites More sharing options...
ArthurK Posted 15September, 2022 Report Share Posted 15September, 2022 Sorry, if I am not mistaken, you are concerned about a 60K debt and the interest rate change? I am not being flippant about 60K but the pain in going through the paperwork, be it direct or through a broker, would do my head in to save even 1% / $600. I hate banks and their paperwork, its like blowing my brains out. Unless you are planning to do a full refinance and try and do full draw down on an interest only loan and say pull $700,000 out then not sure what the worth of the effort would be. Talk to Macquarie and they will assess you over the phone. Experienced that today and must admit it was the most painless experience to date with a lender. After a 45 minute call had preliminary approval pending documentation supporting the discussion. Interest only 4.29 and a 3..69 variable rate on $2M. sleazius, DJM, spiller and 1 other 4 Quote Link to comment Share on other sites More sharing options...
smit2100 Posted 15September, 2022 Report Share Posted 15September, 2022 58 minutes ago, ArthurK said: Sorry, if I am not mistaken, you are concerned about a 60K debt and the interest rate change? I am not being flippant about 60K but the pain in going through the paperwork, be it direct or through a broker, would do my head in to save even 1% / $600. I hate banks and their paperwork, its like blowing my brains out. Unless you are planning to do a full refinance and try and do full draw down on an interest only loan and say pull $700,000 out then not sure what the worth of the effort would be. Talk to Macquarie and they will assess you over the phone. Experienced that today and must admit it was the most painless experience to date with a lender. After a 45 minute call had preliminary approval pending documentation supporting the discussion. Interest only 4.29 and a 3..69 variable rate on $2M. I tried to get finance on one year sale and lease back on a novate lease with with Macquarie for less than the amount in the OP's post and it was the most painful experience of any finance application I have done, particularly explaining to them my payslip. All that to be told my application is rejected because my earnings in the payslip are denominated in USD nothwithstanding they are deposited into an Australian mortgage offset account. Just now, smit2100 said: I tried to get finance on one year sale and lease back on a novate lease with with Macquarie for less than the amount in the OP's post and it was the most painful experience of any finance application I have done, particularly explaining to them my payslip. All that to be told my application is rejected because my earnings in the payslip are denominated in USD nothwithstanding they are deposited into an Australian mortgage offset account. PS pretty good rates quoted. Were they under a portfolio account eg up to 10 sub accounts and can mix and match pand I , interest only variable or fixed 6 minutes ago, smit2100 said: Quote Link to comment Share on other sites More sharing options...
Carrot01 Posted 15September, 2022 Author Report Share Posted 15September, 2022 1 hour ago, ArthurK said: Sorry, if I am not mistaken, you are concerned about a 60K debt and the interest rate change? I am not being flippant about 60K but the pain in going through the paperwork, be it direct or through a broker, would do my head in to save even 1% / $600. I hate banks and their paperwork, its like blowing my brains out. Unless you are planning to do a full refinance and try and do full draw down on an interest only loan and say pull $700,000 out then not sure what the worth of the effort would be. Talk to Macquarie and they will assess you over the phone. Experienced that today and must admit it was the most painless experience to date with a lender. After a 45 minute call had preliminary approval pending documentation supporting the discussion. Interest only 4.29 and a 3..69 variable rate on $2M. yeah, seems best course of action is to try and get a rate review - was thinking to pull 300k out of redraw get a lower rate based on the new balance of $360k then put the $300k back in - or fix the rate which will loose the accessibility to redraw. Think I will just suck up any future interest rate rises & pay more off in the year or so left. thanks Quote Link to comment Share on other sites More sharing options...
Carrot01 Posted 17September, 2022 Author Report Share Posted 17September, 2022 I got westpac to drop the rate a full 1%, which I was happy with. sleazius 1 Quote Link to comment Share on other sites More sharing options...
flamingporsche Posted 18September, 2022 Report Share Posted 18September, 2022 On 16/09/2022 at 00:17, Carrot01 said: yeah, seems best course of action is to try and get a rate review - was thinking to pull 300k out of redraw get a lower rate based on the new balance of $360k then put the $300k back in - or fix the rate which will loose the accessibility to redraw. Think I will just suck up any future interest rate rises & pay more off in the year or so left. thanks Correct me if I'm wrong, but don't most fixed interest accounts limit how much you can pay off each year? This may prevent you pulling out the cash to up the loan value and then chuck the cash back in again. Without knowing your financial situation (seems ok only owing $60k on $1m property) maximising the deductible interest is a good thing on your investment property. I'd suggest pulling out the 300k and leveraging it into another investment property (or some other investment). Quote Link to comment Share on other sites More sharing options...
Carrot01 Posted 18September, 2022 Author Report Share Posted 18September, 2022 thats a good point, but yeah, im not on a fixed rate or was intending on going one if i moved redraw around. The limit for extra payments is only $30k. yeah, will go down the investment property path once I either sell my F-Type (worth $80k - paid for with cash) or have the rest of the mortgage paid off in 18 months . cheers, I appreciate the reply Quote Link to comment Share on other sites More sharing options...
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