Hi Everyone,
Two years ago I place a deposit on an off the plan project which is due for settlement in mid january. I was encouraged to use a broker here in sydney to get the rest of the finance. These persons at the beginning had told me they should be able to get the deal through however, this morning admitted that they were not able to. Then recommended that I use RAMS for the loan.
The problem that I have is that I am self employed with no accountant, not registered for GST and it was considered that $40,000 income was too low for the amount that I needed. I currently have two properties, one residence other investment with a mortgage of $390,000 part of that is equity which i use for shares.
My plan was to let all (3) properties out, which would generate potentially $1,500 rental income. The interest bill on the loan would be estimated at $1,200 but I have been turned down by the banks, so I was told by the brokers.
I am totally perplexed. Any one can advise and steer me in the right direction would be really appreciated. Time is not on my side.
Regards,
Wayne
Hi Wayne
You are in a bit of a problem it sounds. I dont think you would qualify for finance on those figures and that situation. You need to act quickly as you run the risk of not being able to settle and losing 10% deposit and more.
Quickly go and see a few more brokers to be sure about the finance issue. If you cannot get finance you may be able to end the contract and should see a solicitor about that. Another option is to try to onsell the unit before settlement. has it gone up in value?
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
Why Rams?? they won’t help with “serviceability” issues; they are however a lender that offers a range of low-doc products including 80% LVR, accountants letter only etc….but that won’t help in your case- sounds like your broker is firing blank shoots.
If serviceability is an issues and your wanting Low-doc then i can only think of two lender that will do this; and one of them is part of our private lender ( an international financial institutions) – Last time i used them it was something like 2 years fixed rate of 7.20% ( Low-doc) – this will be your serviceability rate; all another rate loaded at SVR + 1%.
$40,000 is not a lot so…the acceptance of the loan with this lender will depend if your overall financial and if you can service the loan at 7.20% sensitivity rate ( normal sensitivity rate is ~ 9.10%)
Lastly with a income of $40,000 is this after tax or before? and if after- how much deduction did you claim back that year?
Since settlement is mid jan- and x mas is the most busiest time; i suggest you act quickly – shoot me an PM/email and we can work on the file if you like.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Wayne, as the boys have mentioned sounds to me like you could have got yourself in a wee pickle.
Without being funny i would not hesitate but get onto Michael tomorrow morning and get him to sort this out.
January 12 is not that far away and i assure you that the Seller will not be happy to wait whilst you go and sort finance elsewhere.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Micheal,
I have sent you an email. In reality, to be honest I don’t think I can get this deal through. But would be prepared to give it ago.
Thank’s Terry and Richard.
Cheers,
Wayne
Yep got your email; have sent you a question air to fill out so we can understand your financial a bit better.
Don’t want to give you false hope; but at the same time don’t want to shoot you down without trying- so once i get the info back from you we shall go from there…
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Shape wrote:Yep got your email; have sent you a question air to fill out so we can understand your financial a bit better.Don’t want to give you false hope; but at the same time don’t want to shoot you down without trying- so once i get the info back from you we shall go from there…
Regards
MichaelHi Michael,
Don’t understand your email when you say that you have sent a question air which I have not received. And I had sent you a direct email letting you know that it was not received. Why no response? I guess every one is busy.
Thanks anyway.
Wayne
Hey Wayne
Give the boy a chance.
Us Brokers are flat chat at the moment dealing with a flood of Compliance paperwork, daily battle with lenders and even the odd new deal or two.
Michael is usually well on the ball and maybe he has just let that email slip.
Shoot him another note and i am sure he will email over his Client Analysis Form.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Wayne,
i sent you the email + question-air twice.
Once yesterday in the arvo, and once again this morning at 12.20am.Check your spam folder?
Give our office a call on 1300 74 5626 – Ext 2.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi Richard and Michael,
Firstly, I was not trying to be rude but to make the point that I had not got the said email. And as Michael has said that he had sent it twice seems a bit strange that neither had arrived.
And as you both agree and I accept, time is not on my side. In hindsight, I should have started this about six months ago. At least I would have known what I was in for and been better prepared.
Cheers,
Wayne
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