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Investment help

Posted: Mon Mar 22, 2010 2:32 pm
by janefeild
My husband and I have an ING fixed loan-$325000 & a Int only fixed loan - $50000 - Fixed period end in aprox 1 year. We are both on good incomes totalling over 100K per annum with 2 dependents. Our house is valued at approx $485-$500K. We have no available cash except a few thousand dollars but we wish to get into the investment market for retirement benefits. What do you suggest?

Re: Investment help

Posted: Mon Mar 22, 2010 2:45 pm
by Otto Dargan
We could consider increasing your ING loan (to avoid exit fees / break fees) up to 90% of the property value. You could then use this money as a deposit to buy a new property.

Or we could refinance your ING loan if it worked out to be cheaper for LMI / interest rate to do so.

This means you could increase your loan up to $436,500 (assuming a $485,000 value) which would release $61,500 in equity. This would be sufficient for you to buy a property for around $400,000 with a 90% loan and pay for all costs such as stamp duty. We would need to see the full details of your situation to confirm if you can afford to buy an investment for $400,000, it may be that buying a smaller place is more appropriate for you.

Just to let you know mortgage brokers make more money by refinancing your loan. We do not believe in doing what is best for us, but rather we seek a win win solution. That is why we are always happy to consider doing loan increases instead where it is appropriate to do so.

Re: Investment help

Posted: Thu Apr 08, 2010 3:30 am
by stock-trading
it really sounds great option