Refinancing a mortgage

[Pandora]

Have you done it?
Whats involved?
Do you have to have a deposit as you would for a normal loan or can you just move the whole amount across as long as its under the loans required LVR (ours is between 88-91)?


I guess the deposit part is the main question I have.

I want to break my fixed rate loan. I know what the costs involved for breaking it are and Im prepared to cop them, as well as the risk that rates go up - they'd have to go up 9 times to get to what we're locked in at.

[alioops]

I cant remember what the rules where when i worked in mortgages, but I would recommend you see a mortgage broker as usually they will know the answers.

[Pandora]

thanks Ali yes we wil be seeing at least 2 brokers, after the issues with the current loan

[Doing my best]

We refinanced the whole lot, so no additional deposit.

[Pandora]

Thanks! Was that with the same lender or a different one?
Im happy with my bank just not my rate, but i want to look around and hopefully get something with an offset acct.

[Doing my best]

a different lender.

I am not sure how it works, and don't want to lead you astray. If you have any specific questions I can ask DH tomorrow.

[Fuzzywuzzy]

I would talk to my bank first and see what they can do. Because you are financing more than 80% LVR you would need to pay LMI (lender's mortgage insurance) because it is seen as a higher risk. This amount varies between individual banks depending on where they get their insurance from and can be a few thousand dollars. Having a 8-11% deposit to bring the LVR down to 80% would avoid . Good luck