Refinancing in retirement.

Discussion in 'Loans & Mortgage Brokers' started by blks2k, 10th Jul, 2008.

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  1. blks2k

    blks2k Member

    Joined:
    1st Jul, 2015
    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.
     
    blks2k, 10th Jul, 2008
    #1
  2. Nigel Ward

    Nigel Ward Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    989
    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
     
    Nigel Ward, 10th Jul, 2008
    #2
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,638
    Location:
    Gold Coast (Australia Wide)
    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
     
    Rolf Latham, 13th Jul, 2008
    #3
  4. Smartypants

    Smartypants Well-Known Member

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    NSW
    .......he said, with his tongue planted firmly in his cheek ;)
     
    Smartypants, 14th Jul, 2008
    #4