Just because interest is not charged to one party to a complicated transaction does not mean interest is not charged or earned in the process. I think you will find that your wheelbarrow is safe and the money would be taken instead.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

My example involves no gearing and is a return of 24% gross per annum. There is a lot of great investments available in the market if you look around.

I also consider this investment to be relatively low risk.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

Terry, that is exactly what was stated is illegal in Hart’s case.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

MMS is a standard loan so your client would be declined for applying for this as a low doc loan application. As a full doc, the rate is 6.80% which is higher than the loan I have in mind anyway. The equivalent Macquarie low doc loan would be 7.55% for the first year and 6.80% by the fourth year which is still higher. If your client wanted a LOC,…[Read more]

I would love to see that case.

Apart from capitalising interest being non-deductible in my opinion, I can not see any benefit to doing this if there is no non-deductible debt to pay off (and then the capitalising interest is definately non-deductible).

Why would anyone want to pay $1.00 today to get back $0.47 (or $0.30 if a company) tomorrow.…[Read more]

There is not many lenders who do what ANZ do. You cannot put every client into ANZ.

What if it is a $100,000 Low Doc loan at 80% LVR? Where would you get the LOC and at what rate (no intro)?

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

Originally posted by maximus:
I’m trying to get equity through lines of credit against my I/P’s to use for deposits as well as service the loans into the future.

I don’t know why you are looking for a LOC but what concerns me more is your comment above. If you need a loan so you can service other loans, I would be advising you not to borrow any…[Read more]

Originally posted by Nat R:
There is also a variation where the interest is capitialised for 25 years to create a larger principal amount, which is then paid off in equal payments….the increased payements are then considered to be all principal.

No such variation exists because no interest is allowed to be charged or it would not be a Muslim…[Read more]

Kerri, interesting stuff. I have been working on the same thing since January. I am awaiting some industry affiliations before making it public. Maybe we should merge them.

By the way, brokerunity.com.au is long gone.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

Firstly, on those figures, you could only get $20,000 if the house is worth $270,000 unless you feel like throwing a few thousand away for mortgage insurance.

Secondly, you should use a split if the funds will be for an investment purpose. An offset account is fantastic to have against your family home debt. You can set the loan up and deposit…[Read more]

Jules,

As Kerri pointed out, a bank cannot discriminate. The easy way to get your terms if you want to stay with them is to write a letter regarding the discrimination and that you will make a formal complaint to the banking ombudsman if they refuse to provide the loan over a normal term of 30 years. If age was their only excuse, they have to…[Read more]

It does not take into account the pay-per-use fees such as redraw and ATM charges. Be careful.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

There are only two main players in the mortgage insurance game. These are Genworth and PMI…

http://www.mortgagepackaging.com.au/index_files/mortgage_insurance.htm

As well as these two, there are many other mortgage insurace companies but they only insure the lender that owns them or closely affiliated groups. They allow these lenders much more…[Read more]

Cross collateralisation is also used for multiple loans. It merely requires enough security property to cover the borrowings. This could be one loan or 50 loans.

Lenders sometimes have to do this as a result of their policy especially if there is a high LVR, specialised security or less saleable security offered as security for a loan.

In high…[Read more]

MMC are pretty good and linked to another very popular up and coming non-bank lender. There is a member of this forum who works for them and I will let them respond to you.

I have never heard anything bad about them.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

ANZ may have rejected you because of serviceability. They have one of the higher serviceability rates in the market. There are some good packages out there for multiple property investors like yourself.

I would most likely go to one of the packages to obtain the benefit of higher interest rate discounts for higher levels of borrowing. I would not…[Read more]

Establishment Loan actually goes to 106% and they will also let you include the expensive mortgage insurance ‘replacement’ they charge. They are a great product for those who need it but a little expensive rate wise.

Regarding no money down, you could be eligible for one of the 100% lenders as previously mentioned by mortgageman but this would…[Read more]

Another major reason why people sometimes use interest only loans on their non-deductible debt is because it provides a bit of breathing space when things go a little bad.

Consider the following regarding non-deductible debt…

If you set your loan up as principal and interest and then lost your job, you would be required to continue making…[Read more]

Super, what figures did you use to calculate what the compounding rate would be? I don’t recall anyone stating how much they actually had to reach the 3k a week figure.

I know that I can earn $3,000 per week (gross) without working or worry with a capital base of $650,000 which is not very much for many people.

Robert Bou-Hamdan
Mortgage…[Read more]

Originally posted by surreyhughes19905:
Hi,
PS: if you fully pay off an IP you no longer reap the gearing benefits that amplify your gains.

OR LOSSES!!!

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links