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Advice wanted: RE Finance(for a motorcycle)

Discussion in 'Businesses and Service Providers' started by Gazzr1100, Nov 28, 2008.

  1. Basically, all I want to kno from anyone who works in the finance sector is, am I screwed because i'm on a disabilty pension in relation to getting a loan(to purchase a MC).

    I know the banks won't touch me(tried them), and have been knocked back by a few other finacial institutions, even tho in 25+ yrs i've paid off one house and numorous personal loans, all early.
    I've never had a bad credit rating & only owe a 5th of what my current house is worth(according to rates notice). Outside the house, we own everything else outright, including two cars & a caravan.

    The crazy thing is, that the banks were tripping over themselves to throw $10g's my son's way, who has no credit rating, and a 6 month work history. Go figure.

    I am looking to borrow $20,000.

    Thanks in advance.
  2. Refinance?
  3. something smells, have you asked if you can add it to the mortgage? Should be no problem if you have 80% equity. :? :?
  4. Convert your mortgage to a Line of Credit. Then it is none of their business what you spend the money on. I use the CBA Viridian Line of Credit, and while I owe nothing against it, it gives me totally flexibility and mortgage rates up to the agreed amount, and then personal loan rates beyond that. There is a small monthly fee, but you may be able to find a LoC without a fee these days.

    Otherwise, ask Steve at www.bikefinance.net.au He is an advertiser here. https://netrider.net.au/?page=partners under Other.
  5. Thanx for the replies peeps.

    Refinance is a no go with the bank as once again, their excuse is that i'm on a pension, and then my age comes into it(too close to 50).

    It seems that once you are on a pension thay don't want to know you. Mind you, they haven't bitched once in the last ten yrs whilst we have paid on average an extra $700 per month over and above our required loan payments. We have since stopped this practice and told them to their face they ain't getting a cent extra and can wait the normal term of the loan to get their money back. Kind of biting off our nose to spite our face I kno, but stuff them. Why should we help them recoupe their money quicker, when they won't help us.

    But I digress.
  6. You forgot sticking pens in your own eye and setting your hair on fire too.

    I hate to point out a fundamental flaw in a policy which seems to make you happy at present, but the bank wants nothing more than for you to take as long as possible to pay what you owe. If you want to get up them, owe them nothing as of tomorrow. Then there is no business between you!!! They are in the business of selling mortgages for as long as possible.

    You could be losing TENS OF THOUSANDS of dollars by adopting this course of action.

    Any finance on a depreciating asset (read non-asset!) such as a motorcycle will be punitive compared to what you pay on the mortgage.

    Can you not redraw on what you have already paid as voluntary payments? If not, your loan is rubbish and best you get out of it completely asap since you get absolutely no benefit from it.
  7. I know, I know Macman, and I would if I had that amount of money. Then again, I wouldn't be posting in the first place as i'd have the money for my bike :wink: .

    Sadly, in hindsight, we had our loan fixed for 5 ys when I was pensioned off so we didn't have to worry about any serious rate hikes, as we did struggle initially with the huge drop in money. A fixed term rate doesn't come with redraw facility which we knew at the time. We did it a second time as we still had 5 kids at school. It gave us peace of mind financially for those 2 periods of time, and I still stand by our decision at the time.

    Since our two eldest have left school and are working now we are more financially viable & have just reverted to the variable rate with redraw. However, what we have already channelled into paying the house off early doesn't count. It only includes funds payed over and above since we reverted back to the variable rate, which is just on 3 months now.
  8. Hi.



    and tell him Doug sent you, great helpful guy and a friend for 35yrs.

    PM me if you like for the full details, I'm not posting them public.

  9. Thanx Doug. Have to wait till after Christmas now :cry: . Too much crap going on before then
  10. Hiya Gazza,
    An option for you may be a second mortgage. I know you have a fixed rate and cant redraw. I pretty sure even on a fix rate you can have the amount of your loan extended providing total LVR will be less than 90% and they consider this to be a second mortgage. A lot of finance companies will give you the finance (second mortgage) on your property as the see it if you default they always have your house to fallback on. There are also some finance company's (city finance) that use existing vehicles (car, caravan) to loan money against.

    Good luck.
  11. I would speak to a mortgage broker and see what they can do from a refinance perspective. It's a shame that you can't leverage the asset you have built up over the years.