Refinancing a home loan

[JapaneseMike]

So, my lack of PR means pretty unfavorable terms for a first mortgage. Aeon for example will offer a loan at ~3.5% APR, and the maximum loan term of 15 year. Not exactly what you want in a mortgage.

Am currently weighing up the option of taking the (bad) loan and then refinancing the mortgage once I get my PR.

The lady at Aeon bank mentioned that most companies won't let you refinance over a longer period than the existing loan, i.e., you can't switch a 15 year loan into a 30 year loan through refinancing. This was new to me, so I thought to ask the collective RJ oracles.

Comparing the options. honestly, even if I could get decent (sub 1%) interest rates as part of a refinance deal, a loan term of 15 years just doesn't make sense. It seems far better to have the loan over as long a period as possible, take advantage of the silly low interest rates and have the excess cash working on growing in eMaxis Slim all country.

Also, not sure if there's a 'minimum' terms to hold a mortgage before you can refinance. If (for example) I have to wait 2 years, then the interest of 3.5% for 2 full years makes this plan a non-starter. Would want to get the loan refinanced ASAP (so within 6-12 months I guess?)

Keen to hear from anyone who refinanced their home loan that could share their experience?

Thanks

[goodandbadjapan]

I got a mortgage without PR at unfavourable rates but they agreed at the time to renegotiate when I got PR. They did but it still wasn't as good as I had hoped and after a few years I switched to a different bank. I think there was a penalty for switching but it didn't feel like it as I was suddenly paying less each month. I don't think the lender can force you to stay with them, but they may include penalty clauses for early repayment (or switching) so that is something you'll need to watch for.

[Wales4rugbyWC23]

So, my lack of PR means pretty unfavorable terms for a first mortgage. Aeon for example will offer a loan at ~3.5% APR, and the maximum loan term of 15 year. Not exactly what you want in a mortgage.

Am currently weighing up the option of taking the (bad) loan and then refinancing the mortgage once I get my PR.

The lady at Aeon bank mentioned that most companies won't let you refinance over a longer period than the existing loan, i.e., you can't switch a 15 year loan into a 30 year loan through refinancing. This was new to me, so I thought to ask the collective RJ oracles.

Comparing the options. honestly, even if I could get decent (sub 1%) interest rates as part of a refinance deal, a loan term of 15 years just doesn't make sense. It seems far better to have the loan over as long a period as possible, take advantage of the silly low interest rates and have the excess cash working on growing in eMaxis Slim all country.

Also, not sure if there's a 'minimum' terms to hold a mortgage before you can refinance. If (for example) I have to wait 2 years, then the interest of 3.5% for 2 full years makes this plan a non-starter. Would want to get the loan refinanced ASAP (so within 6-12 months I guess?)

Keen to hear from anyone who refinanced their home loan that could share their experience?

Thanks

Have you tried SMBC? They are not so fussy about PR, more interested in your salary and employment situation. Local credit unions might be another option.

[JapaneseMike]

So, my lack of PR means pretty unfavorable terms for a first mortgage. Aeon for example will offer a loan at ~3.5% APR, and the maximum loan term of 15 year. Not exactly what you want in a mortgage.

Am currently weighing up the option of taking the (bad) loan and then refinancing the mortgage once I get my PR.

The lady at Aeon bank mentioned that most companies won't let you refinance over a longer period than the existing loan, i.e., you can't switch a 15 year loan into a 30 year loan through refinancing. This was new to me, so I thought to ask the collective RJ oracles.

Comparing the options. honestly, even if I could get decent (sub 1%) interest rates as part of a refinance deal, a loan term of 15 years just doesn't make sense. It seems far better to have the loan over as long a period as possible, take advantage of the silly low interest rates and have the excess cash working on growing in eMaxis Slim all country.

Also, not sure if there's a 'minimum' terms to hold a mortgage before you can refinance. If (for example) I have to wait 2 years, then the interest of 3.5% for 2 full years makes this plan a non-starter. Would want to get the loan refinanced ASAP (so within 6-12 months I guess?)

Keen to hear from anyone who refinanced their home loan that could share their experience?

Thanks

Have you tried SMBC? They are not so fussy about PR, more interested in your salary and employment situation. Local credit unions might be another option.

Thank-you for the suggested, so SMBC say they don't provide loans to that area 地域外 or some such.

I guess local or credit union it is. Anyone used あすか信組合