Forum Replies Created
Hi Yule7575,
Yes that’s right. If you know what you want or don’t want it should be fairly easy to choose by having a bit of a chat. The first question I would ask is do they deal with investor a lot (they will all say yes I suppose) but then drill down and ask about whether they recommend putting all business with the same lender and cross collateralising or if they prefer to use stand alone structures. If they don’t understand that then alarm bells should ring. Also if they jump straight into talking about % rate that would be another alarm bell. They should be asking lots of questions as to you current and future plans, what LVR you would want to start at and why etc.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeIt’s a matter of degrees. I’m happy to have a chat to anyone or meet with them and do some preliminary calculations/ scenarios for them but they need to decide after that if we are going to work together. Too much paperwork to muck around with for all parties at that point.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeHi Dave,
The problem you have is if you want to use company profit then you would need the other shareholder director to guarantee you. Stupid I know but the logic is the bank doesn’t want to rely on income that your business partner could withhold.
Your only shot is to supply interim financials prepared by an accountant for this year supported by BAS statements to confirm turnover and the last say 4 years ITR’s to show last year was an anomaly. Also you would need a good explanation as to the decrease in income last year preferably supported by n accountants letter. If you could provide all that I think you would be able to get an exception made. Either that or look at a low doc type option.
Thx, Marty
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeJeez, They seem a bit inflexible to me. I would push for the revaluation of the IP immediately so you know where you stand with them. If they wont allow perhaps its worth trying a valuation through their broker channel Homeside which any broker can order upfront. That is on the basis that Nab will accept the Homeside ordered val which I am not 100% on but think they would. get the broker to check with their BDM beforehand.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeI had Nab on a commercial deal want to trust to be a guarantor for this very reason. I think its not required in practicaity ie if the beneficiaries are giving personal guarantees why should the bank care about the trust not distributing the income. At the end of the day they are lending the person the money really not the trust otherwise why would they allow a 2 days old trust to borrow money.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeProblem here is every state is different. Jenni in most states you don't cross things out on the contract as part of negotiations, this is only in WA from what I have seen. You could drop your offer into the vendors property (if they live there) if you think the agent isn't passing on your offer I suppose.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeJacM wrote:Sounds like your broker wasn't doing a very good job. He/she should have checked what was on your credit file and decided which lenders it was possible to approach without your record being a problem. Sack your broker. Get Richard (Qlds007), Jamie (Jamie M) or Terry (Terryw) from these forums to take care of you.Not fair at all….With a number of recent enquiries on a credit file negatively affecting the chances of approval (especially on a 90% + deal) I and I am sure many other brokers are loathe to check a clients file before submission in case our enquiry trips the deal over and causes an auto decline. IT DOES HAPPEN. So the best way is for a client to check themselves which doesn't count as an enquiry. The other alternative is asking the client upfront if they have had any defaults but of course this wouldn't have helped in this case.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeIt wont be $87 stamp duty for the new purchaser though? Not new once transferred once I would have thought.
Have you tried other lenders?
I would be doing this as well as talking to a solicitor about on-selling.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeIf you are talking from your own personal experience with each lender I dont think that really qualifies you to comment on banks credit policies in general.
CBA conservative? I think most brokers would disagree with you there. They do all sorts of lending that others wouldn’t. Perhaps not great with serviceability so that is perhaps where you are coming from? but by far the most lenient in many other areas.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MePat007 wrote:Also like alot of times in business you need to remind yourself that a business is made of people, and with a large corporation you may hit a roadblock simply by speaking to someone who is technically correct, but unhelpfull or lacking in knowledge about what they can do for you.Try getting a meeting with a branch manager, if they are not helpful maybe try another branch.
Find the right person, thats the key.
Too true its people that matter, I think 2 opportunities is enough though!
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeYour problem I think is that someone at the bank told you a furphy ie thet they can use the valuation over purchase price to give you instant equity….that is clearly not policy. It has always been policy to take the lower of the two when calcultiing the LVR.
Therfore you are going to have to pay lemders mortgage insurance (LMI) or have 20% deposit or have a guarantor supply additional security.
Here is an idea….
If you have a relative that has equity in a property and is willing to be a guarantor for you short term you could use thier property as additional security to settle the purchase without paying LMI, then a month after settlement you apply to have the guarantor removed and the bank will be obligded to to go off the valuation they have on file. Then you have the equity!
One big problem though is if they order another valuation at that point which could be the tricky part as if the sale goes through at the lower amount this may negaitively affect the subsequent valuation amount. However CBA normal policy is they WONT order a new valuation if the last one is less than 3 months old.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeKeep saving
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeSome bad advice in amongst some good..for mine.
Borrowing via a p/l is very rarely a good idea. Crossing to boot. AVOID.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone Mevucko84 wrote:1) We discussed that if I lodge Tax11/12 before October 2012 – I will have a lump sum tax payment due in May 2013 ($50k) and go into PAYG instalments for 2012/13 based on this financial year income, correct? 2) If I withhold lodging Tax11/12 until May 2013 – I will have a lump sum tax payment due straight away ($50k)? And then what happens? Do I just keep withholding as I am this financial year or will Govt want some money up front? Confused…Not an accountant but this is what my understanding is
1) lodge in October 2012 and you will have to pay the tax bill within a month or two. Why would they let you wait until May 2013?You will then go onto installements quaterly based on 2011/2012 turnover and some GDP BS that they add on too.
2) lodge in May 2013 and pay by June 2013. Go on to quaterly installements same as above.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeHi Tiggie,
Firstly sorry for your break up.
My advice is your situation is not sustainable long term, therefore you are going to need to acquire an ongoing income even if it is part time or casual work to strat with. It may also be an opportunity to get out of the house and meet some new people. I would leave everything as is for the moment and take some time out to reflect on what you want to do work wise and lfe wise. Then jump in.
The professional renovation idea maybe it but start this off slowly with another regular income job as many try and fail doing this.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeI was wondering how you make a living too.
According to the SMH article you are a self funded retiree at 35. Jealous.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeThe OP would not be complaining if rates had moved in his favour.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeIt would be nice if the ban included break costs on fixed rates but the commercial reality is if that happend the fixed rates would have to be higher to allow for this.
I also take umbridge to the fact that this is confusing to borrowers. I always make sure clients are FULLY aware that break costs are possible when taking a fixed rate loan. To be sure I have them sign a document and initial it right where it says the same. All brokers worth a pinch of salt would do this.
I also posted an articale on my website about how they mechnaics of break costs are calculated for those interested. I too saw a few $60K and $50k break costs during the GFC.
http://mortgageexpertsonline.com.au/fixed_rate_loans/fixed-rate-loans.htm
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeI would say if you are happy to sell if the price is right i would get in touch with your neighbour and strike an agreement with them first before you do anything legal wise with the developer ie you agree with the neighbour on X amount each and then sell as a job lot for a premium to current market value.
As big money is involved do not trust anyone at face value and get a good lawyer to protect your interest.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone Merobwilson wrote:
To start up with a mortgage aggregator or try and build up my own panal of lenders ?Major pit falls of the business to watch out for ?
Is this a very tough bussiness to get clients in ? what would be the average amount of loans processed per month for a good broker working on his own ?
Best lending software to use ?
Ideas to start and grow my own business with limited capital ?
1. You need an aggregator/ most lenders won't direct accredit you unless you do certain volumes with them…like a lot of volume.
2. Ultra competitive. Potential clients being mecinary in their decisions. A lot of brokers earn very little. Dealing with banks can be really frustrating. Long hours. Night time appointments.
3. Yes very tough. Average accross the industry is $600K per month (2 or 3 loans) which is not enough to live off. It costs at least $20,000 pa to run a broking business + your time / wages say $50,000 minimum. If you are not getting trail (takes a while to build up and many lenders dont pay it in the first year) you will need to settle about $1,300,000 a month to break even. Most dont do this.
4. Aggregator will supply it.
5. You need at least 12 montsh income up your sleeve to even consider a carrer as a broker.
I don't mean to sound negative but its a tough game. When I am busy I often work 12 + hour days and sometimes you get a run when nothing is going right, clients dick you around, banks dick you around and you basically are working for nothing.
From client first contact to actually getting paid is usually at least 3 or 4 months but can be 18 months or 2 years or whatever. There is a very long lead in time to make it a viable business. You also end up answering a lot of questions and running endless scenarios often for no reward.
It can be a great job when things are going well and I truly enjoy it most of the time especially the interaction with my clients. The money can be good if you are good but most brokers struggle.
Dont give up your day job until you give it a go and you need some capital to give it a go.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone Me
