ANZ is only on the portfolio – which has higher set up and higher ongoing costs – realistically not suitable or comparable in this sceario. The additional 750 set up fee and 550 annual fee for 12 splits versus CBA 350 for unlimited splits. Also under portfolio all securities are crossed via a floating multi…[Read more]

Keep in mind a first home buyer will pay far more (approx double) as a percentage of their weekly pay to buy a home in Australia than they would have when rates were at 17%.

It is important to note a couple of…[Read more]

ANZ portfolio has a set up fee of $750 plus guarantee fees and an annual fee of $550. They don’t offer company / trust structures at standard pricing and portfolio is not suitable for a loan this small.

NAB need to be signed off by business banking which is a pretty hard sell without business exposure.

The dragon and trusts – let’s…[Read more]

I would also prefer to mortgage only one title.
If you did get in strife you could sell the IP and pay the debt therefore the owner occupied home has minimal risk. If you have a funding buffer or funds in offset you will have time to sell the IP if in need.

CBA are one of the only lenders that…[Read more]

Not only do buyers need to watch there own budget, the banks will take the higher rate in to their debt servicing calculators so everyones max loan amount will drop a little.

With some developers in Melbounre already having trouble moving stock, Property Investment companies sales dropping, AFG…[Read more]

For example the structure e.g. Sole trader, partnership, pty ltd or trading through a disc trust will all depend on: expected turnover, how you plan to get funds in and out of the business, how many customers…[Read more]

1. Split banking: banks support their loyal customers. When you have split banking the banks have no way to assess your overall position on an ongoing basis e.g. Less ability to monitor you through your “hardship”. An example of this…[Read more]

Non disclosure of debt is very common however the new legislation (NCCP) will put more accountability…[Read more]

No. Think of it as having 100k in cash and then buying 100k property. You have not lost the 100k. You have simply transferred it from cash…[Read more]

I would like to see commissions to any other parties banned. As soon as your broker pays your real estate a commission you need to wonder; are they looking after…[Read more]

The title will say something like this;

99 of 100 shares; mr Jack…
1 of 100 shares; mrs Jack…

If this is the case you will get 99% of income / deductions
Your wife will get 1% of income / deductions.

The upside for you is tax benefits if neg geared – you claim…
The down side is capital gains if sold while you have high income……[Read more]

The average of two years and the 20% growth rule discussed above is more of a generalisation. It is simply a trigger to ask some more questions to make sure you understand what is driving the growth. If it…[Read more]

Also, keep in mind you don’t need to both be on title to get a loan in both names – if one person is on title the other can be on the loan as a second applicant however needs to have a financial…[Read more]

There were times banks paid a little more notice to end value however it is an area where a HUGE percentage of loans fall in to default / arrears. If you have problems during contruction e.g. Financial problems, problems with an exteral business, seperation etc. – the end value means…[Read more]

If it’s a mortgage manager with deferred etc fees I wouldn’t got near it.

Depending on the loan amount I could give you someone in each state at CBA or ANZ that can do the same. Dealing direct with the bank.

Banker

Min size 18sq… Have the policy in front of me…

I wouldn’t read to…[Read more]

Vic is not too big. Depending on the use of the land, where they bank and if they have have other property you could get 80%.

For example. If they were in the top risk grade, had other property or assets, good income etc banks will bend if land size is the only exception to policy. If the…[Read more]

Often you don’t even need to value a clients existing properties (subject to lender) so I’d have to say where I’m sitting the…[Read more]

Is it a farm? Or non farming land?

I’ve spent most my life in banks. Now out but still advise a little.

Of course you can get a better rate. Especially in business banking where as a banker you include brokerage in the aquasition cost of a deal – and set you margins accordingly. Brokers offer superior choice. Bankers offer supieror price and flexability (with one lender).…[Read more]

Complete load of bollocks.

Reality is that many people have paid over market value for properties in the last year or so.

Going back almost 2 years I had a client who purchased a property and…[Read more]

Who is the lender?
Same as 1000 other mortgage managers:- wholesale funders!

They might be nice guys but I wouldn’t go there…

Like all the other mortgage managers – clients that have been burnt are too many to be counted…

Our system is inflated with easy access to money, stimulas, negative savings patterns and reliance on never ending growth (capitalism). Without never ending growth out economy dies. Never ending growth is impossible.

I’m not being negative, I just know that if I’m eating an icecream, it doesn’t matter how small my licks are – at…[Read more]

I’ll play devils advocate because you did ask for pros an cons…

The risk is substantially higher when gearing at this level. Jamie M pointed out the benefits of gearing when prices grow. Gearing will enhace the results either direction in the property market.

For example.

If you are geared at 80% and the market dips 10%. You lose 50% of…[Read more]

In some cases when you develop property, or if you buy commercial property to owner occupy, you mght pay GST.

So for example if you buy property for $1.0M you need to pay $1.1M Inc gst. The bank lends say 70% of $1.0m (700k) and you need 300k plus costs and GST. Some bankers will give you a short…[Read more]

Commercial is a lot more complex; largly case by case basis.

Branch lending is the “starting point” for a lender. E.g. Crap wage / often in their first 6-12 months from being promoted from a tellar. If they do well at this they move in to mobile banking or relationship management.

Mobile lending is also interesting. There are a lot of non-proformers who don’t write a lot…[Read more]

Most people ignore LMI because it’s added to the loan. Unfortunatly you still have to pay it back…

If you get the right banker. They were recently paying conveyancing costs. My guy has up to $500 per client to…[Read more]

CBA

The majors often self insure which is cheaper. They also have slightly cheaper LMI in some cases due to the volume of business they offer the insurer.

Don’t think that LMI is always the same price…[Read more]