Hi all. Has anyone heard of Premium Finance? I've just had a cold call from them offering to send a consultant to show me how I can access a $6500 tax rebate for mortgage payments (no obligations). Some new government incentive. I'm still curious as to how they make their money.
Any comments appreciated.
beware of cold callers
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Stephen
Listen to what they have to say and then put it on the forum. It sounds like they are just offering something that you can get through any mortgage broker , but you never know, it may be something new that not many people know about.
Cheers
K
Are they tax advisors? Probably not. Sounds like yet another 'morgage reducion' type scheme that gets 'sold' for several thousand dollars, when any switched on lender (or switched on business person or relative or mentor) should help you with for zip…..Keep us posted but please be cautious.
Meeting the consultant tonight. I'll keep you guys posted. I managed to find the website and actually rang the customer services to try and get a better idea of what they do.http://www.premiumfinance.com.au
sumnerstephen wrote:Hi all. Has anyone heard of Premium Finance? I've just had a cold call from them offering to send a consultant to show me how I can access a $6500 tax rebate for mortgage payments (no obligations). Some new government incentive. I'm still curious as to how they make their money.Any comments appreciated.
The fact that they quoted a dollar amount for a tax saving without knowing your financials would suggest a meeting will be a complete waste of time. People are always looking for some secret that will put them ahead of the pack, so making claims such as this is good marketing, but there is no way they will have better knowledge of potential tax deductions than any decent accountant. I would go further though and say there is a 99.9% chance that they will know less.
I remember speaking to a forum member some time ago who had received advice on structuring their loans from one of the many debt reduction companies out there, and what was proposed to this person was blatant tax evasion.
I should note that I know nothing about Premium Finance, they might be fantastic, but from the sales pitch I doubt it.
Regards
AlistairWell I can now give you some feedback. The service they offer is all about creating a strategy to reduce personal debt, access better tax benefits and hence have more money to invest in property. (I think the whole $6500 tax rebate mentioned on the phone was just an inexperienced telephonist). Where they make their money is on the commission from any future products you get through them (Apparently they can get better rates on anything from mortgages to house insurance).One other cost is the $295 now which will get us a day with at their office in Melbourne to personalise our strategy. This actually includes flights there (for us from Perth) and accommodation. Even if we don't even use any of their information, return flights for two of us + accom for $295 total isn't a bad deal.
I am with Alistair they maybe wonderful but anyone who charges upfront for a residential mortgage brokering service linked to debt reduction is taking advantage of you.
I tell you what for half that amount I would do it through in a Financial Plan and provide you with a free email monitoring service for the first 12 months.
Seriously how can someone tell you over the phone they can save you $6500 of Tax rebates.
Richard Taylor | Australia's leading private lender
Thanks guys. I appreciate the feedback.
Thanks Ben
Premium Finance's staff are qualified too – Can you tell what they are qualified as ?
Richard Taylor | Australia's leading private lender
Hi All
I went serching to find out more about Premium Finance, My Wife Anne and I did the $295 trip to Melbourne
and months later, after lots and lots of stuff-ups, The whole thing has gone terribly wrong. I won't write more about this yet because I Intend to give them the chance to fix the problems. Cheers Annican.Premium managed to sort out the few problems we had, and I have been very satisfied with there approach toward the customer
This is a great setup if you want someone to do the work for you but probably costs a little more. All in all I have found Premium to be a reputable company with a good product.Annican great first post, what section of the company do you work for?
Can anyone confirm having to pay an initial $5000 fee to become a client prior to using Premium finances refinancing or purchasing services.
I would just like to check that everyone has had to pay this or is it just me. Its not mentioned anywhere on the website or during the phone conversations, only at the very end of the visit to the office. Has everyone had to pay this or am I getting the wool pulled over my eyes.
All responses will be appreciated.
PM me if you wish although I see no harm in making this information public.SteveJ wrote:Can anyone confirm having to pay an initial $5000 fee to become a client prior to using Premium finances refinancing or purchasing services.I would just like to check that everyone has had to pay this or is it just me. Its not mentioned anywhere on the website or during the phone conversations, only at the very end of the visit to the office. Has everyone had to pay this or am I getting the wool pulled over my eyes.
All responses will be appreciated.
PM me if you wish although I see no harm in making this information public.
Yes, I think everyone cops this. Makes you a "client for life", apparently. They do not charge this when/if you buy more properties through them. They will also try to get you to use their "preferred" lawyers for conveyancing and to manage the rental property as well. All signed up on the same day, before you fly home!
If you have an existing mortgage it will probably be refinanced with a particular bank and your investment loan could be spread between more than one lender.
So they make money from the fee, no doubt from the commission paid by the developer for the land-house package or whatever it is, from managing the new rental property and the commissions on the new and, possibly, refinanced loans. And the plan is that you come back to buy more.
They have expanded into Melbourne after doing quite well in Brisbane. Have an idea they concentrate on Melbourne's outer suburbs, where house and land packages are plentiful. They have probably been priced out of Brisbane in some regards.
Read between the lines …
Hope this helps.
I would put my A$5000 into my mortgage…NOT in their pocket.
"Preferred Lawyers"… hm… sound interesting… I would get my own INDEPENDANT Lawyer to save my hard-earned $$$$$
"Client for life" = Blood sucker for lifeI was just trying to say it a tad more subtly
Hi there, In regards to Premium Finance did the trip to Brisbane to head office not really knowing much about property investing.
Was going to invest my money in managed funds and super originaly, After the meeting wich was very informative ( took a while to get my head around it!) headed back home to think things over. After inquiring with estate agents and getting values of properties mentioned called back to agree to let them set up my finances to invest. They were very helpfull and informative through the whole process and have even helped me with financing properties in my home state as well. I paid the client for life fee as they stated that I would be able to use their help for financing property elsewhere. To my knowledge they make their money through developers commissions.Yes Frank
Of course… only one and THE ONLY Post EVER…….
you will never see them again…. such a low life
Called themselves "Premium Finance" = "Premium Sucker"Time for ACCC and ASIC to regulate so called "Finance" company
Where is our "toothless" Mr. G. Samuel !!!!!!Couldn't agree with you more G o M.
At least National legislation will clean up the Mortgage Broking industry and get rid of a load of cowboys.
Guess it is a start.Richard Taylor | Australia's leading private lender
Hi All 
You must be logged in to reply to this topic. If you don't have an account, you can register here.
