number 8 wrote:
You may be missing my point?P&I should never be used, hence there is no need to ask the question – I am a Broker an Planner and I do not want to know what banks have the policy that you are describing. All my clients are I/O. If the bank doesn,t allow this, then take your business to another who will. There are many options when…[Read more]

Richard – don’t think they are looking to borrow in the trust . The borrowing is in his name and the business operates through a trust… E.g it is where the income is.

Sarah – without disclosing details can you tell us what the business does?

I will be the first to put up my hand and say these deals confuse me a bit. Banks accept declarations in some cases up to 80% of turnover from bas statements. Then lend 80% on low doc. If you not a rating 1 or 2 client in terms of risk grade banks still accept 40% of turnover as a declaration. It is only a few like liberty that actually calulate…[Read more]

It can proceed in a trust. Can you provide 12 bas?
What is your annual turnover and what does the business do?

Cross collaterlising relates to security rather than debt servicing. If the debt levels are the same either way you shouldn’t need to x collateralise to make the deal work. When the banks / brokers lodge the deal on their computer the system will automatically link the security. If they are lodged seperatly You get no cross collaterisation. E.g.…[Read more]

No major issue if you have equity. Most lenders will let you go up to 80% of you home or 90% with mortgage insurance. Assuming you can service the debt.

Re your mum, you will need to make sure she can afford the repayments – might cost more than renting. You might deed to tip in some cash on a monthly basis.

Unfortunatly i’ve seen plenty of people lose money on property – similar situations. Forget about capital growth at the moment and have a look at what rental returns have been doing in the area. E.g. How much does rent need to grow for it to become positivly geared? How long will this take based on average rental growth over say the last ten…[Read more]

Not at that rate. Their offset is called misa which is more like a net based savings account rather than a day to day account. In this case you would take their standard varible with wealth package attached (this is called mortgage advantage via broker Chanel). Rate is then 6.61 less discount based onthe size of the loan.

Get a credit card with Cba. In six month you will be elligible assuming everything else stacks up. They have a 3 year variable at 5.93% that reverts to a base variable after three years . Base variable currently approx 6.1%. 600 app fee. No monthly fees for the life of the loan. Westpac anz and nab will struggle with the 95%. I don’t track what…[Read more]

The first lender won’t know if you lodge a second unless you tell them. It will be the bank taking the second that needs a deed of priority from the first otherwise they won’t know what level of the security is supporting existing debt. Without the DOP a major bank won’t do the second.

I am assuming you are talking about taking a second at a much…[Read more]

I have a second mortgage approved and ready to settle. Cba, nab and Westpac all do them.

Cba and Westpac are doing plenty due to their family pledge / guarantee products. The one I have approved is due to the client not wanting to break a fixed loan with another lender. The rates are the same as a first mortgage.

They are not really any faster…[Read more]

It all depends who you bank with. Westpac and Cba lend 95% to existing clients however 85% and 90% respectivly for new to bank clients.

They have different policies re who is an existing client e.g. Westpac – know one knows. Cba – if you have a Cba credit card, home loan or personal loan , and have had this for more than 6 months – you can apply for 95%.

So you have Cba, Westpac and anz all for on the spot approval. Add nab and a few others as well because reality is anyone can get approval on the spot. Only Cba will be able to print contracts there and than at first appointment. Broker Chanel takes longer as they can’t prepare their own loan contracts.

If you take a second mortgage option the…[Read more]

Cba offer 60 min loan approvals. If the manager can approve the deal they then try Internet based valuations though rp data. If you get approved on the spot and rp data supports your Val they can print docs while you are there. You are then ready to book settlement. All at the first appointment.

If it goes to credit add 24 hours, if they need a…[Read more]

I might call Maurice and get a couple of million for myself. I just need one of you to lend me $6000 to transfer to the Uk to get the ball rolling.I met this banker on the net who has 12B pounds and has offerred me half if i help him move the money to Australia. When this comes though I’ll give your $6000 back (plus interest) and payout my good…[Read more]

I might call Maurice and get a couple of million for myself. I just need one of you to lend me $6000 to transfer to the Uk to get the ball rolling.I met this banker on the net who has 12B pounds and has offerred me half if i help him move the money to Australia. When this comes though I’ll give your $6000 back (plus interest) and payout my good…[Read more]

Captain M,NAB portfolio and NAB choice package are different products. Portfolio is mostly sold via business banking and has a higher annual fee. I think it is approx $550 – $600 P/A. The “portfolio limit” is what you apply for and have any guarantees signed for.  You can then adjust your splits and even change the names on each split without the…[Read more]

Fredo,

In most cases banks work off gross income however bank managers can usually accept your net pay if it is deposited in to your account (only if it is deposited into their bank). This history will enable the banker to approve future loans without payslips. They will put the net figure though a calculator which will estabish what your gross…[Read more]

Hi Richard – comment was actually meant for Dirty not Dan however I’d be interested in Dans feedback – and yours.

If a client has funds in off-set for three years equal to the amount of the investment loan and therefore does not pay interest – is future interest changed once offset funds are used for personal use still deductable – according to…[Read more]

Hi Dan42 – Interest only with off-set is available with most lenders. I recently had a client run in to a problem using off-set like this. He had a 300k investment loan and 301k in offset – he paid no interest for 3 years. When he eventually used the funds in off-set for a  new home he assumed it was tax deductable as the loan had not changed. Wh…[Read more]