Forum Replies Created
Terry beat me to it.
The other comment which concerned me was
'They found me a house and land package that I purchased at near the bank mortgage value"
The Bank valuation should always come it at the purchase price and not somewhere 'near'.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Ben
Have to ask why your broker / bank is wanting to cross collateralise the loans together.
One reason it is easy to process for the Broker / Bank however the biggest loser is you the client especially if you wish to access equity down the track on one of more of the properties. Even if you decide to sell one of the securities in the future to release equity you may find that the Bank request these funds be applied to reduce their existing loan committment which will cause problems.
There are so many reasons you would not X collateralise your loans however as i mentioned it boils down to the Broker / Banker and how dilligent they are when it comes to the processing or their expertise in this area.
Depending on your overall lvr the mortgage insurance premium may well be calculated on you overall debt position with the Bank and not just the new loan.
The interest rate as i have written on so many ocassions is just one consideration when looking at new loan structure flexibility both now and in the future is more important.
By the way 7.11% is not competitive after all that.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Stuart
This might help http://www.asic.gov.au/asic/asic.nsf/byheadline/Do+I+need+a+credit+licence%3F?openDocument
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Matthew
I agree with you there is value all over the place IMHO.
I have just gone to Contract on a 4 bedroom luxury home at Hope Island backing onto the Gold Course.
Originally sold for $1.45M and we have had our cash offer of $685K accepted.
Estimate rental is over $1100 / week so not a bad yield as well as the potential Capital Growth.
The Gold Coast is a basket case and there are deals like this all over the place like fruit from a tree waiting to be picked.
I feel a wee bit sorry for clients and valuers who are trying to prize out equity and are having these such sales play havoc with their finance applications.
Anyway agree with you about CBD and surrounding suburbs. Glad some of my IP's are that close in.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sorry Speedy in Qld you only get 5 days cooling off and not 10.
The Contract is dated the day the Deposit Holder signs the Contract not the date the Seller signs it.
Certainly they could be the same date but doesnt have to be.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Your Broker is incorrect some lenders still do full meaningfull pre-approvals however normally such an approval will be subject to a satisfactory valuation and suitably signed purchase contract.
If LMI is required then this will also be an underwriting condition.
As SNM has mentioned as long as you feel the valuation stacks up and your Solicitor has reviewed the Contract signing unconditional is an option which makes it more attractive to the Vendor.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I am on 1.3% Discount with Anz but initially that was borrowing of over $9M and a 50% lvr.
Thankfully now it is down to $1.3M and a 7% LVR but they have maintained the margin.
Will be all gone in a year anyway unless i decide to buy more.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Jamie has nailed it in one.
I have 101 clients who have done similar however it does come at a cost.
Normally depending on the State you are in there is Stamp Duty payable on the Transfer.Still depending on how long you intend to stay in the property can be well worth it.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As Terry said in regards to equity / cash for deposit.
In fact post GFC you need more than before as > 90% lending is very tough.
Unless you have a good UMI i would suggest you need 16-18% to cover a 10 deposit plus acqusition costs.
In regards to the comment made by Dymphna i think you have may have misheard her as all liabilities need to be disclosed irrespective of the entity in which you hold the property.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Paul
Refinancing the Instalment Contract a couple of years down the track has not and is not the issue the issue comes when the original buyer / investor purchases the property with a view to imediately onselling the property thru an IC.
We have all of our remaining IC thru one of the majors done at National level in Melbourne due to the number and volume but this is totally against their Credit policy as it is the Policy of most lenders. Course there is always the odd local manager who slips the deal thru on the QT however non that i am aware of that openly offers such a product to investors.
As always i am keen to be proven wrong just never found a lender yet that officially allows the deal with Full Disclosure of what is happening.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
It is not the best rate going around if that is your question and if you wait a fortnight may find you could do better anyway.
Dont just look at the rate look a bit deeper into the whole product being offered.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Really Jamie i could probably add another 19 lender to that list at the mo.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
There are many a Commercial loan done these days ( especially if with 1 of the Big 4) which depending on how structured have an ongoing requirement for you to provide income information on the anniversary of the settlement.
Standard Term loan would be different but depends on how it is structured.
5 months for a loan is incredible but as Terry has mentioned "what right has your Bank to tell you what name / structure to buy the property in.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Property market maybe quiet but the finance market is not.
Lenders declining deals left right and centre.
As a result some of us USER'S dont have as much time as we used to get in and answer 101 questions.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
There is NO requirement to be a member of VFA but there is a requirement to be Licensed.
If in doubt drop Paul a line as he is an expert on such matters.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes Michael dont you love the Bank West Pre-approvals.
We approve your loan conditional upon you submitting a new application and all supporting documentation and we going through it with a fine tooth comb and seeing if there is any reason why we cant decline it.
Luv those lenders.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
A search on the Company will give you others views as the question has been raised previously.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hate to say if you are merely after the cheapest rate then Citibank is not necessarily the way to go.
Shoot Michael a line as he has already provided you with some information and i am sure he can sort you out.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Again amazing how many first posts from happy attendees.
Mk escort sorry mate NO neither Rams or Bank West will accept such applications.
Matthew C may i ask you as you have done a few deals do you have an ACL?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Think we answered this question on a similar post you placed.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
