AFR July 24, 2004 The broker, one of many who scouts supermarkets for customers, convinced the couple they could pay off their home loan in seven years simply by applying for a credit card.
Andrew Willink, has an additional warning for borrowers considering mortgage refinancing. When you have your home refinanced, the lender may revalue your property. Let¿s say you bought a home two years ago and you had a loan-to-valuation ratio of at least 75 per cent, so you had a 25 per cent deposit," Willink says The value of the property might have dropped and you might have to pay mortgage insurance to the new lender,” he says.