Forum Replies Created
The comparison rates you have are incorrect. It is NOT POSSIBLE for the comparison rate to be lower than the ACTUAL rate. The Homestar site has listred these comp rates for a while now, and I am honestly suprised they have not been pulled up on it yet.
Also, the rates are very close to ING becaues Homestar just rebadge ING wholesale money.
Best of luck anyway.
Tim
Richard,
It sure is.
My business partner arranged 100% funding for a commercial project only weeks ago.
Most commercial facilities are not considered on a servicibility basis if there is a clear Xit Strategy in place. You just need to have room to cap interest and a revolving GST facility built in.
Totally possible.
You just need to know where to look.
Bite the bullet and just get a commercial construction loan.
It is, after all, a commercial project. You are setting out to build a dwelling for immediate sale and profit.
Even though it is only a small scale (there is no smaller project than build one structure and sell it), it will be a much easier way to indicate your intentions to the bank and to get the correct value assigned to the properties.
CentralChoice wrote:Hi Joyce,I am pretty sure your lender will have an issue with it – if your name is on the title it must be on the loan. However, you can be on the loan without being on the title, just not the other way around.
The only other way would be for your husband to "gift" his share of the property to you, eliminating the need to pay any stamp duty. Then you can refinance. You'd have to do the whole thing all at the same time.
Cheers.
Unfortunately, Henry is not correct in this instance.
The opposite of what he said is correct.
If you are on the loan, you must be on the title.
You can be on the title but not the loan.The reason is that if you are signing up for the obligation to repay the debt, you MUST have an obvious interest in the transaction ie interest in the property. Otherwise, it would be considered a third party guarantee (either for security or for income purposes)
Also, you application does not change with or without your husband. If he is not on the application, you still have to disclose he is living there, and he will become a dependant. If he is on the application, you just do not supply financials, and none of his income is taken into account.
Everything stays the same whichever way you approach it.KISS principle applies here. Just put everyone on the application and go for it.
Best of luck
Lucy,
The reason you are confused is that the person on the other end of the phone had ABSOLUTELY NO IDEA what they were talking about. All your questions are pretty standard, and you should call your bank back and ask to speak to someone that handles Mortgages on a regular basis, not just the first bank teller that is available.
I could spend thwe time to address all your questions (which I and most of the brokers on this forum are more than capable of doing) but that would negate the need for me to exist. If your bank is crap, and you can not get good service, you should use a broker to fill that gap.
Try calling the bank again and speaking to a more experienced Mortgage consultant.
Best of luck.
As long as the figures are all OK and you don't have any defaults etc then it should not be a problem.
and I am sure that the Refund broker (that was a plumber or carpenter etc) only weeks ago will be very helpful.
The funny thing is Wayne Ormond actually uses that point as a sales pitch when selling his franchises. "I have brokers that are writing loans today, and they were plumbers and Mechanice two months ago". "This could be you"
Find a broker that has some experience, takes the time to ask questions and understand your individual situation and pay them what they are worth.
Best of luck
As a novice, you have not yet had the opportunity to experience the banks and all their stupidity.
The answer to your question is a simple one.
Option one – Go with the bank
Option two – Go with the same bank, but ues a broker.
Now my opinion is biased, but you should consider that if the rates are the same, thd the fees are the same, you will get more for your money by using the broker. You get all the bank has to offer, and then a broker whom you do not pay to give you even more advice and service. It is an easy question to answer.
Also, not to let the wind out of your sail, but you have precisely 0 bargaining or haggling power with the bank. One tiny small loan is not going to have them running around looking for new ways to impress you. You need to continue doing what you are doing, take the advoce of a (your) decent broker and have the loan set up to suit you.
Bast of luck.
PLAN does not require that you be a member of MFAA (there is no MIAA). You can also be a member of the FBAA.
If your are not a member of either, you should consider reviewing your credentials as they are almost a 'must have'.
I have just joined PLAN, but I have no real feedback yet as I have had only limited dealings with then.
Cheers.
I think the best you could argue if you were facing a big fee is to break down the remaining term, and compare your current rate to the predicted rates over that period.
ie If you break a loan today, and you are on 8%, and todays rate is 6%, this forms the basis for the penalty. The result is then multiplied for the remaining term is 2.5 years.
If you took this one step further and looked at that particular institutions rates for fixed loans over that period, you might find that todays rate is 6%, but the 1 yr fixed is at 6.3%, and the 2 yr fixed is 6.5% and the three yr fixed is 6.9%.
You could argue that the bank should break down the remaining term to more accurately reflect their loast revenue, and maybe this will be a lower figure.Honestly, I have seen some institutions use very basic methods for working out the break fees, and I have seen some two page scientific formula's used also.
It will be most practical to ask your bank for a copy of the formula (if you cant see the breakdown of the formula in your loan agreement), and find a way to manipulate it to your advantage.
Best of luck.
Eugene,
Why will you be the only applicant on the loan?
If your wife works, it will be better to have her income taken into account where possible. You will have to show her on the application if she is going to be on title. If you do not want her on title, you will have to note her as a dependant anyway, and this offers no protection of the asset anyway.
Is there a particular reason for your suggestion?
Also, the guys above are right. You have not explained if you have any kind of deposit? If not, then you will need to use the FHOG to complete the property transaction, as most 100% loans are 97% loan and 3% fees and charges. Leaving you to come up with 3% of the purchase price and costs.
Should you have an alternative strategy, then you are quite free to use the FHOG however you like. Most people tend to use it for completing the property transaction.
Best of luck.
Richard is right.
Sometimes the best advice is free, and the worst is the most expensive.
Some of these marketing groups do OK work, but there is a vast majrity that do not.
Take your time to do a bit of research yourself, and learn as much as you can . Jump on the net, and look at what is out there.
Then go out and seek some additional advice, and you will be better equipped to sort the crap form the wisdom.
Besk of luck.
It sertainly sounds like there ia a multitude of things wrong with this transaction.
I am pretty sure that the first thing required to be signed in WA is the Finance Brokers Contract and authority to act. Everything elst that follows without that signed is contrary to the finance broking laws of WA.
In addition, the above points are excellent ways to exit the contract. You can't just drop the contract price. The loan will need to be completely re-assesed by the bank, and the valuer will have to issue a new Valuation report noting the correct contract price. Your brother would have to (as mentioned above) sign the new contract, or at lease initial the amendment. Without agreeing to the amendment, their is no valid contract.
I just went through a similar situation with a client of mine but in QLD (the contract issue, that is).
Best of luck.
I fancy if you begin to mention 'solicitors' and 'legal advice' then your brother might find a direct path out of this mess.
Maybe you should man up and tell us all who you are. You need some new material. You have already covered crap website and lives with mum.
As outlined, some of us can dish it but cant take it.
So, open up and take it. Tell us who you are?
Obviously you have no idea what you are on about. Finance brokers have NOTHING to do with APRA. APRA is the regulatory authority for banks and super funds (among other things)
Either way, I am not wasting any more time on you as this post has just become rational feedback countered by personal attacks. When you are man enough to tell us who you are, maybe you will earn some credibility. Maybe.
Wake up to yourself kid. This forum if designed to provide constructive discussion. All you have done is turn it into a slanging match and you have not made a rational arguement yet.
Bast of luck with growing up and making something of yourself.
Badger,
I am not particulary fussed as to your opinion. Everything you have said in relation to the site is correct. Spot on. It is very low rent, and thats exactly the way it was intended (obviously barring the typo).
The fact of the matter is that I put the site up in about 3 hours from start to finish (and it shows). It was intended purely to fill the space where an ;under construction' page would sit. Nothing more. I do not intend for it to be high traffic and nor will I ever have the site for that reason. I am too busy writing loans and servicing clients all over the country to worry about the opinion of a coward such as yourself.
You promised a comparison, Badger. Now I've shown you mine……..?
How about your name? The name of your company, if you even have the initiative to own and run one?
How about reviewing the list of comments in response to your moronic comment, and the obvious ignorance it was bourne from. Almost everyone responded with the same comment. You are a biased moron.
So how about providing us with your resume and everyone can see why they should listen to you?
All you have done be attacking my (happily admitted) cheap and nasty site is the equivalent of punching someone that has their hands in their pockets. Weak.
Let us know your name, phone number, email, website and other credentials and we can all decide for ourselves?
Man or mouse?
According to the current rules, you can own 10 investment properties and still be eligible for the FHOG. The great is to assist with the purchase of your first owner occupied property.
There is essentially no difference between an investment loan and an owner occuspid loan. It just comes down to your own actions. If you claim the interest charged by the bank as a tax deduction, then it is an investment loan. You decide if it is an investment loan, not the bank.
Badger, you are obviously a pleb, and have likley not held a job any higher than low/low-middle management.
Seminars can be useful, when they have accurate content and seek to accomplish a fair goal. Obviously, the goal in most cases is for the organiser to promote/peddle their products or services. That simply must be assumed. That is their business, and they seek to make a profit. Providing it is carried out in an ethical and legal way, there is nothing wrong with that.Maybe your post should have had the quote 'property books are for mugs. They don't contain anything you can't learn at a few seminars' ????
Your opinion is simply biased, and could be explained away by your ignorance. Different people learn in different ways. If you have ever had to manage or train a team of staff or accociates, this would already be known to you.
There are an equally large number of rubbish 'investing / self help and property' books on the market as there is crap seminars to go and see. You are a dullard for even raising the issue based on the merits of the seminar content, as each and every seminar contains such drastically different material. What you have attacked is the method, a good reason why the topic is not one that can be resolved. Different people learn in different ways.
Here are some key points –
If I had the oppurtunity to attend a seminar with a top property expert, I would probably look into it, and would not rule out attending simply because it is a seminar. (Books do not answer when I ask questions)
If you wrote a book, I would not buy it.
Again, different people learn in different ways.
All the best with opening your library.
As most of the transactions you winn need to perform will be electronic, I would recommend an institution with strong internet banking facilities.
Other than that, just make sure you do the sums if there is any kind of fee attached to the account. Figure out how much money will need to be in the account to cancel out the fees, and make sure you are gettign a good deal on the loan itself.Best of luck.
There is no such thing as a 'normal loan'.
You can have an interest only loan on the house you live in, and you can pay p+i off your investment property.
Just based on the very basic summary you have provided, it would probably be suitable to structure your loan in the following way. Take out a competitively priced loan with an offset account, and try for something with minimal or no ongoing fees.
Put your income and any money you are saving for the trip in the offset, which will reduce the interest you pay on the loan. When you decide to go for a trip, you don't need to do anything with your loan. You do not need a different kind of loan. The bank will just continue taking payments from you (presumable from the offset account)
The Tax deduction is worked out (hopefully) by your accountant. Once the property is rented out, and being used for investment purposes, you can claim the interest that the bank charges you. You will also need to disclose the rental income on your tax return, and you will be well advised to get the place valued in order to make working out your CGT obligations easier.
If you would like clarification on any of these ideas, or if you just have further questions, please feel free to shoot me an email and I will be happy to go over it with you.
Have a good one.
The pre approval is basically just showing you have the income to service the intended loan amount. As credit policy and restrictions change almost daily in the current lending climate, your pre approval is not worth the paper it is printed on. Especially without a security property selected.
Just find a suitable property, and apply with the lender you wish to go with at the time. Definately do not contunie to make applixcations, as a lot of institutions will take issue with this. Also, if you will be needing Mortgage Insurance, then they have mors specific thresholds ie more than 5 enquiries in past 3 months etc etc, and their credit scoring systems does not leave much room for negotiation.
Best of luck with your purchase.
