Your second scenario is correct. If your property is $600,000 and the bank allows 80% lend; you have a 'shaded value' or 'bank value' of $480,000. You can take your 480k in a wide range of products e.g. loan or line of credit (or a combination). As Greg said: – you might need to go a 90%er. If you did go with the first scenario you would have: e…[Read more]

Hi Heather, I think you're referring to a 'fixed and floating charge'. Examples of fixed assets are; real estate, cars, equipment, machinery etcExamples of floating assets are; cash at hand, stock, trade debtors etc (move up and down)A fixed and floating charge (also known as a mortgage debenture) can be registered against a company. It means a…[Read more]

I’m pretty sure RAMs will need the mortgage insurer to sign off in the deal:- therefore it’s not going to be their call. You need them to check the post code lists the insurers have to see if they can do 95% in Mt Isa.

Shame your with Westpac:- they’re very tight however do have room in their policy to lend 95% to existing clients. If they…[Read more]

If you search his ABN on the net he is a sole trader set up for approx 3 months. I think the concepts good but he needs to keep an eye on the markets he's promoting his work in. No point in offering something that can get your clients in trouble… give the guy a bit of time and he might work it out.Agree with gurjjeet; removing powerlines etc…[Read more]

Richards got a point re the personal debts however be careful. If you have a CBA debt and repay it; you are back to 90% as you no longer have an existing debt facility. Each bank defines an existing customer slightly differently. Who are your existing debts with? What savings do you have?Is the savings genuine savings?Re. credit score. One of the…[Read more]

Do you have a CBA credit card, car loan or debt facility?If you have an existing debt with CBA (or unused credit card) and have held it for more than 6 months; you can get 95% plus Mortgage Insurance (up to max 97%)CBA approval includes automatic Mortgage Insurance approval for loans under 1M.

Based on the rates I’m guessing your with CBA and looking at NAB.

If it’s NAB I don’t think they will be cheaper than the other banks for long. Within 12 months the margin will narrow. Nab have higher cost of funds than ANZ and CBA. They are just buying market share as their loan book is less than half the size of CBA or Westpac ( albeit they…[Read more]

A couple of things to consider.

Firstly; although almost every broker will tell you they have access to commercial finance – most have no idea how to present a deal.

When it comes to the major banks; dealing with brokers is very different to home lending. Firstly they work on revenue models; The all up rate (usually a base plus a margin) can…[Read more]

The feeback I’ve had is similar. They did not say to receive it in writing however the main point was not to receive any information apart from a name and ph number. E.g. If they start advising you what the client is doing apologise and tell them you have to get that information from the customer.

I don’t work for CBA however give them 5-10 deals p/m. In andrews first post he says he has a great relationship with his bank, good pricing And expects to use them for other purchases however can’t get an offset. Although the product is slightly inferrior If you adapt your day to day banking the differences become irrelivant.

There is no…[Read more]

Hi Richard,

ASIC are still reviewing the referrer part but I actually support it…

ASIC are not interested in the agent / accountant who tell the client to see one of the bankers / brokers up the road. They are targeting the real estate agent / accountant that forms a strategic referral relationship with a financier or broker and refers regular…[Read more]

Min depoist $500. Min withdraw $500. You can have your salary / rent direct credited to it and just transfer say $500 out each month for cash.

Due to the min withdraw you cant use it for all you day to day bills however if you use a credit card for these you just need one withdrawl p/m to pay your bill. You can also have ATM access however once…[Read more]

Hi Dan,

You shouldn’t have any major problems as long as you have a good banker. I’ve financed plenty of accounting firms in VIC; sometimes without real estate. I’ve never not been able to provide finance to partners after they buy in to a firm.

Stay with a major and avoid mortgage insurance if possible.

Banker

Sorry GOM but it is all a load of bollocks.CBA was bank of the year. ANZ Home Lender of the year. Someone else took personal lender of the year.NAB Socially Responsible Bank of the year. Westpac Climate Leader of the year. CBA and ANZ have put their awards on their home pages – the other banks will follow (happens every year). All up there are…[Read more]

If they are a director of the company it will come up on the credit check.

Is it approved? Tell them bankers says it should take less than 24 hours…

The offset with Cba is not too bad but min withdraw 500. If you use a credit card for your day to day spending and just withdraw once per month from the MISA you have no issues. You also néed a day to day bank account however if you are using the credit card as outlined above you only need to hold a float of a couple of hundred cash; if this 200…[Read more]

Westpac are tight on these. If your financials and combo reports stack up you won’t always need a Val : – won’t cost too much to move.
You would be borrowing with a max term in line with balance of the lease agreement.

Servicing is often an issue if the lease is under 10 years. If your balance sheet has a directors loan owing too you change the…[Read more]

I’m trying to work out from the original post if there is enough equity in the existing ppr and the land to do it without worrying about a build contract. It does say the land is owned outright and there is equity in the other house.

If you took a line or credit to 80% of the existing house and 80% of the land would you have enough money?

You…[Read more]

Hi Scab. Ask the banker to check the wealth package fee. If your partner pays the annaul fee that will cover your personal accounts: not an application in the trust. The trust will have its own package fee..