I have been dealing with a client for over 6 months now. She has high debt (7 credit cards) which I have advised her to pay down before we move forward with a new mortgage. Time has passed and I have stuck with my advice to hold off. She went against my advice and went to direct to a bank. The bank told her they could do a pre-approval. She was half way through the process with the bank and realised she was not comfortable. At this point she called me – she told me she was not comfortable with what the bank was doing and she thought it sounded wrong and simply did not trust what they were telling her –can you help me out?
Yes I can help you out! That is what I am here for! From there I looked into what the bank was doing. They were applying for a 5 year fixed loan (this is there way of locking in a customer). She wants to do renovations plus she earns extra income which she wants to put into the loan. She wants to be able to re-draw these extra funds as she needs them. With a fixed rate you cannot take out any extra funds, you are limited to the number and value of extra repayments you make. If they did go through with this and tried to refinance with CBA before the 5 years is up and CBA says no then they would be stuck with no renovations until 5 years’ time.
When you come to me for a home loan I will look at all the possible scenarios that you see you future heading. This was we can plan out a loan structure that suits your needs. I am not just about the great rate but the product selection to fit the client’s needs / wants.
We are currently working on her application and will get this loan over the line for her.
Related Tag: Home Loans Ballina