Join our investing community

Refinancing in retirement.

Discussion in 'Finance & Banking' started by blks2k, 10th Jul, 2008.

  1. blks2k

    blks2k Member

    Joined:
    26th Dec, 2007
    Posts:
    6
    Location:
    Melbourne
    Hi All,

    Need some advise.

    Looking at doing the LOE principal. The one thing that concerns me is how to refinance when retired.

    If there is plenty of equity not financed, ie: lvr 40%-60%. How can you access this without having a regular wage? Serviceability is allot harder to achieve due to the only income being rent.

    Any ideas how to tackle this?

    Thanks

    Rob.
     
  2. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Credit crunch or not there will always be asset based lenders. The question will just be how much is the interest rate and what LVR can you get?

    You've raised very prudent concerns though. Just like the big corporates, it would be poor planning for you to be subject to refinance risk (which in your case would actually equate to a cashflow constraint). So you should ensure you have a good cash buffer and that you give yourself or your broker plenty of time to try to refinance/increase existing facilities.

    Cheers
    N
     
  3. Rolf Latham

    Rolf Latham Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    45
    Location:
    Gold Coast and Sydney
    Hiya Rob

    At sort of LVR, I suggest even today you will be fine to draw down to 70 % lvr with not much stress, IF you are "structurally financed".

    Get yourself a good independent mortgage broker u trust, or a banker u trust 3 times as much, to run the numbers.

    That isnt to say bankers down know their stuff, they indeed do know THEIR stuff.

    ts
    olf
     
  4. Smartypants

    Smartypants Well-Known Member

    Joined:
    2nd Jun, 2006
    Posts:
    226
    Location:
    NSW
    .......he said, with his tongue planted firmly in his cheek ;)