Preparing for loan renewals for property investments
There is not a lot of indication that mortgages are getting any easier to get. Recently I heard that for those who have to find new finance because a loan has run its course, are finding that they are at times, being asked to pay exorbitant interest rates. Should the property price have dropped or be near the equity level desired by the lender, owners are in some ways at the mercy of the lender.
Now is the time to be really diligent about knowing exactly where you are with your finances.
Take care not to leave any refinance that you have to do until the last minute. In previous blogs we discussed applying for finance and the risk of making applications yourself and being refused, which then show up on your credit rating.
Talk refinance situations over with mortgage brokers and get a feel for what would happen should you have to refinance at the moment. By doing this well ahead of time you will avoid any ‘last minute’ decisions which could cost you heavily.
The RBA raised interest rates again this month and there are sure to be more. Property prices appear to be rising solidly in most areas, but regardless of this there still seems to be difficulty in getting finance.
Filed Under: Interest Rates
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