Does anyone have advice about refinancing? I think from recent experience that you have to be careful to 'increase' your finance, not call it a refinance, or the cost can be horrendous. Last year I found a potential new IP & the RE agency had an in house finance brokerage who said no problem, we can use the equity in that IP for the deposit on the new one. So I agreed to have them to that, but specifically requested that they "refinance" with the same lender. They did this and I was surprised at the amount of paperwork, especially letters from the lender's solicitors mentioning discharge of mortgage etc etc. I was horrified afterwards at the costs taken out (close to $5000 on an increase of $32000.). The new purchase did not go ahead. However worse was to come last month when I did refinance the same IP with another lender ( because the value had gone up & the new lender does a higher LVR which allowed me to purchase another new IP). The original lenders fees came to over $14000!!!!!, on top of paying out the loan. They claim it was a "new loan" last year & therefore the exit fees are calculated on the loan being less than a year old.
It's a very expensive way to learn to ask for an increase & not a refinance! I feel the broker should have been aware of the difference & should have had a certain responsibility to point this out to me, shouldn't they?
This has made things VERY tight as I was depending on having enough left over to pay holding costs for several months.
Has anyone else had a similar bad experience?
It's a very expensive way to learn to ask for an increase & not a refinance! I feel the broker should have been aware of the difference & should have had a certain responsibility to point this out to me, shouldn't they?
This has made things VERY tight as I was depending on having enough left over to pay holding costs for several months.
Has anyone else had a similar bad experience?
BEFORE you settle 
