Refinancing in retirement.

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.

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

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

.......he said, with his tongue planted firmly in his cheek