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04-10-2019, 07:21 PM | #1 | ||
FF.Com.Au Hardcore
Join Date: Dec 2007
Location: Ballarat
Posts: 2,132
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Whats involved in this and should i shop around? Currently with aussie but since my local branch has been sold its impossible to get an appointment and the owner seems like a gronk.
Currently sitting at 150k debt, car loan at about 33. Value of house is 250ish. It looks bad though with renos going on. Was told to finish house first then refinance but want to clear other debts to fast track renos. I want to sell the car but wont get enough to clear the loan or itll be too close for my comfort Advice? |
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04-10-2019, 07:25 PM | #2 | ||
FF.Com.Au Hardcore
Join Date: Dec 2007
Location: Ballarat
Posts: 2,132
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Should also say i hate people and paperwork and have burned bridges at the only other big broker in town. I also have no patience or time during business hours. Also the loan is actually through aussie who i think is funded by cba yet somehow got a better rate
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04-10-2019, 09:17 PM | #4 | ||
FF.Com.Au Hardcore
Join Date: Jun 2010
Posts: 700
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I have put a car loan onto a house loan before, the advantage is you pay a lower rate for a house loan than a car loan.
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04-10-2019, 09:20 PM | #5 | ||
FF.Com.Au Hardcore
Join Date: Nov 2009
Posts: 2,858
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for a much longer period.
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04-10-2019, 09:23 PM | #6 | ||
FF.Com.Au Hardcore
Join Date: Aug 2016
Posts: 820
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04-10-2019, 10:18 PM | #7 | ||
FF.Com.Au Hardcore
Join Date: Feb 2005
Posts: 5,070
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Redraw 33k from your house loan and pay off the car. Amounts to the same thing.
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05-10-2019, 07:39 AM | #8 | ||
Banned
Join Date: Jan 2009
Posts: 1,621
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personally i would sell the car and put the money towards paying the mortgage. i would drive a very cheap but reliable car.
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05-10-2019, 07:51 AM | #9 | |||
WT GT
Join Date: Jan 2006
Location: The GSS
Posts: 17,773
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Quote:
Go and spend $2k cash on a good BA sedan. |
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05-10-2019, 08:08 AM | #10 | ||
FF.Com.Au Hardcore
Join Date: Dec 2007
Location: Ballarat
Posts: 2,132
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Thats the plan. But i cant just up and sell the car under finance incase i dont get enough for it
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05-10-2019, 10:10 AM | #11 | ||
IWCMOGTVM Club Supporter
Join Date: Sep 2005
Location: Northern Suburbs Melbourne
Posts: 17,799
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Essentially you would need to refinance the property. Make sure the time of the loan doesn't get reset.
If your already making payments on the car then you need to make sure you feed these payments into your loan or you will end up paying more than staying with what you finance company. If you have a redraw facility on your home loan could you take that money out (if your have some money to take out) for the difference of the finance if you want to sell the car and are still left owing? Essentially at the end of the day you just need to make sure you pay the debt off in the right time. You shouldn't use your home loan if your not gonna pay the extra money. You would be better of at looking for a consolidated loan.
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Daniel |
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05-10-2019, 04:02 PM | #12 | |||
FF.Com.Au Hardcore
Join Date: Dec 2004
Location: Melbourne, Australia
Posts: 2,602
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If your interest rate for the car loan is higher than the mortgage, as long as you put all the money that would have gone to the car loan into the mortgage, you'll come out ahead. Where it costs you more is when you're paying $X for the home loan and $Y for the car loan and you pay less than $X + $Y when you combine the 2 loans.
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05-10-2019, 05:02 PM | #13 | |||
FF.Com.Au Hardcore
Join Date: Sep 2014
Location: Catland
Posts: 3,750
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Quote:
Good comments from Simon (do you want to be paying it off in 30 years) & Fairmont GS & Boson & vztrt (you make it sound like a minefield vztrt! But you sound like you know your stuff) My relative is almost at that lightbulb moment where he sells the 50K loan dual cab, and gets a good BA or VY or old Corolla or something similar to get to work. He was really good at getting the debt down for some years, but then life/house/crash saw the loans get larger. I do worry for him as he works really hard, would love to be able to just pay it out for him if I could. But yeah, choices we all make... Personally, our paid out old Terry is 12 years old now, paid cash, it's probably about to go in the bogan stage, but it still works pretty well. Costs enough with 700 rego, 430 insurance but we're driving it less so it's a tank of fuel a month. Relatively cheap and AWD if we need it for the ski stuff. Plus, if you choose a really good condition BA, you might just hold it long enough to see it go up in value, somewhat negating all the fuel and maintenance to get to work. But that might be a while, and depends on the run to work not being too long. You never know. *BA's also had dedicated LPG, depending on where you are that can be considerably cheaper on fuel. I got 10.9L/100km with the old school gas setup in the BAII ute back when it was new on my old job out in the field, good savings.
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I6 + AWD |
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05-10-2019, 05:10 PM | #14 | ||
FF.Com.Au Hardcore
Join Date: Sep 2005
Posts: 1,380
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If your valuation comes in at $250k - then most lenders will loan up to $200k (ie 80% of it's value) - without Mortgage Insurance. Obviously you also need to show serviceability.
So you could refinance ($150k) + include your car loan ($33k) + total new loan of $183k. If the valuation comes in lower than say $230k - which it very well might, due to the current work in progress on the property, your stuck. This is why someone (no doubt with a bit of loan/valuation knowledge) has suggested you should try & finish the house reno's first - so it looks nice & has the best chance of valuing up without any dramas. You mentioned that you don't like people, paperwork & have already burnt your bridges with one Mortgage Broker already. You're going to have to change your attitude in the current lending climate where lenders are focused on living expenses & are making customers/Brokers jump through hoops to get a loan approval... Check with your car finance mob about any early repayment penalties as you might be up for an extra couple of grand there as well. |
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05-10-2019, 07:08 PM | #15 | |||
IWCMOGTVM Club Supporter
Join Date: Sep 2005
Location: Northern Suburbs Melbourne
Posts: 17,799
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Quote:
Don't waste your money when lenders want your business. Perhaps if the OP can try the one of the comparison sites for better rates. Find a decent lender for refinance and they will come to the house. But he will have to fill out the forms....which didn't bother me when I saved 2.5k a year when I switched.
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Daniel |
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05-10-2019, 08:47 PM | #16 | ||
DIY Tragic
Join Date: Apr 2018
Location: Sydney, more than not. I hate it.
Posts: 22,354
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Depending on level of realistic ability to maintain a car, there is good value and a wide choice of durable used vehicles from $5K-$12K done and dusted (private sale prices).
There’s a lot implicit in the original post, I have concern the finances could start to go backward and gather speed quickly. |
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05-10-2019, 10:08 PM | #17 | ||
FF.Com.Au Hardcore
Join Date: Dec 2007
Location: Ballarat
Posts: 2,132
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Some good advice although i don't need help on deciding on another car. I already have a 2nd car and the financed car only gets used on long highway trips so basically lives in a locked shed so im not really needing it. I am extremely comfortable at the moment with bills and expenses, i just thought of moving it on after renewing the insurance last week.
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06-10-2019, 01:12 AM | #18 | ||
FF.Com.Au Hardcore
Join Date: Feb 2013
Location: Perth
Posts: 830
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My bank gave me a “loan”, extra on the house for my car, but in a separate account over a different term. Basically they gave me $20k at 3.7% over a 4 year term but still on the home loan. I was just going to pay cash but I have put that money elsewhere earning me more than I’m paying.
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30-11-2020, 05:03 AM | #19 | ||
Starter Motor
Join Date: Nov 2020
Location: Melbourne
Posts: 6
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I haven't heard about such a possibility. However, I would also try to sell the car in order to get some money and cover a part of the loan. I always try to cover them as soon as possible, because it's a terrible feeling for me. I think that the best thing would be to consult a specialist. He can advise you what is best to do as he is a professional and can tackle all kinds of mortgage issues. I appealed to such services and I'm very pleased to it. It extremely eases your work, so let me know if you try it.
Last edited by nuthin' fancy; 30-11-2020 at 05:50 AM. Reason: Don't need links to UK based financials services here. |
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