Aaron Whybrow and Karina show self-employed borrowers how to refinance from specialist loans into full-doc mortgages. If you can now provide business financials, you might drop from 6-6.5% down to 2-3%, saving tens of thousands of dollars. They walk through the compliance checks and timing you need to get approved.
Questions this video answers
March 25, 2020.
Loan ~A$750,000 at ~6% down to ~3% (or lower) — estimated saving about A$20,000.
Loan ~A$1,500,000 at ~6–6.4% down to ~2.8% — estimated saving about A$50,000.
NAB and CBA are mentioned with specials around 2.3% down to about 2.0%.
Hey, it's Aaron and Karina here from Diagnostics and Finance. Just wanted to do a video on some refinances that are quite special at this time of year and have probably come a lot more special with all the things going around with viruses and shutdowns. There are some people that are going to be eligible to refinance and some people that may be a little stuck. And there's another video if you wanted some help there with the people that are eligible to refinance. Say you were a self employed person a couple of years ago and you had to use short term financials to be able to get your home loan and it's your own principal place of residence. And now being around this time of year, it's sort of the last hurrah to get your business financials done with your accountant and say that you've been able to get them done and now you've got them done and you believe you are eligible to go from a 6% or 6.5% interest rate down to a 2.8 or even some of the special ones that have come out with the NAB and the CBA around that 2.3 or even 2 point. So there could be some significant savings there. And in this time, even if you're not directly affected by anything that's going on in the market economy now, you may indirectly 12 months, 6, 18 months. I don't know who's got a crystal ball with how it will affect you. So you guys need to be able to save money. Right now there's a lot of specialist loans out there that are eligible to move and we've had a couple of examples of those, haven't we Karina?
Yeah, I've had a client recently who's got a loan amount of about 750,000 and he's been sitting on a rate of about 6%. So it's an interesting time with the reduction of the interest rates from the lender's review of his financials and we can get him down to about 3% or possibly a bit lower and potentially save him around 20 grand on his home loan, which as you can imagine that extra cash in his pocket would be pretty important at this time. What about you?
I've got one that's at around one and a half million dollars worth on the owner place of residence. It's sitting at about 6% interest. That lender is actually one of the ones that have put the rates up by 0.35. So they'll drop it from about the 6.4 mark. And on achievement of this loan, we'll probably drop it down to 2.8, which can represent a $50,000 savings. And that can be quite a good amount of money in normal conditions for self employed people and let alone in these conditions. But we have to stress from a compliance point of view, we do need to be looking at how your income is going to be going into the future. We are three quarters of the year through the tax year and we're going into some interesting times. But we'd encourage you to talk to us. Don't sit on the fence any longer if you've got that specialist loan that needs to be changed.
Yeah, definitely. Reach out, send us an email, give us a call. We'd love to hear from you. Thanks, Aaron and Karina here. Bye.
