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  • Profile photo of RMAARMAA
    Participant
    @roslyn77
    Join Date: 2004
    Post Count: 21

    So my updated response if anyone cares.
    After another couple of weeks with emails back and forth, sending the ‘proof’ that I tried to do this before the change I’ve been told that they will honour fixing one property (2 loans) at the old rate but not the other.
    I’ve questioned this yet again because the only way the banker I’m dealing through got this problem was because I went into the branch (before the change) to get it done.
    Oh the irony.
    In the meantime, I have looked at refi options because I oh so want to take my business elsewhere after this debacle but it’s definately looking like my options are slim to none with all the lending changes and the rates being so crappy.
    I was trying to hold off on going to FOS as I was hoping it wouldn’t come to that but looks like my next couple of days will be putting my head on straight to try and explain (and condense) this saga.

    Profile photo of RMAARMAA
    Participant
    @roslyn77
    Join Date: 2004
    Post Count: 21

    Hi Matt,
    My 2 cents.
    LMI paid may be claimable in your tax return if you refinance but honestly I can’t remember the specifics in regards to timeframes, you’d need to speak to your accountant.
    But have either of the brokers run the scenario with you properly so you can make a decision?
    What I mean is, did they work with you to run the numbers. You need numbers, you can’t make an informed decision without them.
    Like; how much LMI did you pay?
    How much would you need to pay if you refinanced one, or both? The LVR makes a difference.
    What LVR are you trying to achieve? Because both look to be between 70-80% currently. How much do you need for the new purchase?

    If you kept one with the existing lender, maybe the higher LMI premium paid, did a top up with that one, would you pay full LMI again or just on the increase?
    Have they considered refinancing either internally or externally IP2 to say maybe 90%, to repay the original equity release from IP1 so that property’s loans are consolidated and then you reuse the funds against IP1 for the new purchase. And take IP3 elsewhere.
    Could this result in a lower LMI premium if you’ve already paid it on IP2 and only need it on the top up?
    Do you need/want IO repayments? Have they looked into your options if a higher than 80% LVR is required and they’re looking at a lender that is forcing p&I like some are now for investments.

    There’s so many variables.
    There isn’t a ‘right or wrong’ answer as you say but which of them gave you the indication they wanted to work with you to get the most cost effective structure for YOU.

    Rmaa

    Profile photo of RMAARMAA
    Participant
    @roslyn77
    Join Date: 2004
    Post Count: 21

    I wish it was me being difficult!

    Update being, I am no further in my endeavours now than I was a month ago and the month before that.

    • This reply was modified 6 years, 10 months ago by Profile photo of RMAA RMAA.
    Profile photo of RMAARMAA
    Participant
    @roslyn77
    Join Date: 2004
    Post Count: 21

    Benny, What I was trying to fix was-

    Sec 1 – $600,000 was planning to fix at 4.19% 3 years now moved to 4.49%
    another $77,000 as variable using same security but for purchase of sec 2
    Val in January was $810k

    Sec 2 – $815,000 was planning to split $100,000 variable and fixing balance at 3.98% 2 years now moved to 4.38%.
    Val in April – $950k
    These were to fit with IO terms.

    I’ve got a staff member who has explained the situation further up the chain and supposedly waiting to hear whether can use old rates for the past week.

    I know there are good or even better rates with P&I at the moment but I want to concentrate on those variable portions (not be forced by someone else to pay what they want me to) as we’re getting plans and permits on sec 2, so I can debt recycle for soft costs

    Profile photo of RMAARMAA
    Participant
    @roslyn77
    Join Date: 2004
    Post Count: 21

    You’re all right.
    Unfortunately we’re like many caught in the new APRA trap, we don’t have any other options to move to.
    I’ve been trying to consolidate some things for myself (and family as per other posts) but we’ve been told we can’t do anything. If I could sell the kids I might have more hope.

    I’ve been collecting education online and as a result spoken to numerous brokers, I’m not saying good or bad but in some cases after an initial discussion, their silence has been deafening.
    Not wanting to waste anyone else’s time my plan was to fix majority and knuckle down during that time to reduce some debt to be able to move forward. Which is why this peeved me even more as if I had to wear it, it would mean less off principle.
    The harder part is all my stuff is 90% without LMI due to being able to access certain benefits and we’d be talking BIG $$$ if we had to pay it. They win again.
    So Ethan, yes a complaint is looking like our option. I’m the type that would do that and I’m not going down without a fight.

    Profile photo of RMAARMAA
    Participant
    @roslyn77
    Join Date: 2004
    Post Count: 21

    Nathan yes it’s a big 4. How’d you guess?!
    Jamie, it is totally unacceptable.
    Every one I’m dealing with lately (not just the fixing saga) is so focused on sales/ targets it seems they forget there’s a customer attached so anything admin related or seeming remotely like work is involved is not important.

    Profile photo of RMAARMAA
    Participant
    @roslyn77
    Join Date: 2004
    Post Count: 21

    Lending with STG other with ANZ.
    Spoken to multiple brokers, finance strategists if you want to call them that, some even with the luxury of no response once details have been given.
    looking at speaking to them directly again, as last time was 12 months ago, just to see if anything has changed.

    Profile photo of RMAARMAA
    Participant
    @roslyn77
    Join Date: 2004
    Post Count: 21

    Thanks Ethan. I know it’s a weird one.
    I’ve seen it before when they were crossed so they only needed to reduce enough to keep the LVR under 80%.
    But I was just asked the question and I hadn’t come across anything like it before when the properties weren’t crossed. So a bit like substituting security as Terry said but using another property that the bank already has mortgaged, not cash.

    If it helps it make more sense i’ve created some hypothetical numbers..?
    Property A worth $400,000 debt of $50k
    Property B worth $250,000 debt $220k
    If they sell and discharge they have $30k in the bank.
    If they could transfer the $220k over to the other property, with it 100% offset until such time they want to draw upon it rather then reapply for equity release down the track.

    I guess its just in this new environment where a lot of people don’t qualify for what they already have pre APRA, you don’t want to fully discharge debt as you may never get it again!

    Profile photo of RMAARMAA
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    @roslyn77
    Join Date: 2004
    Post Count: 21

    Thanks Terry, but could they substitute the security the bank already holds if they don’t want to purchase again to leave access to the funds for contingency?

    Profile photo of RMAARMAA
    Participant
    @roslyn77
    Join Date: 2004
    Post Count: 21

    Not those initials Corey. But all approved. Docs signed. Were just waiting for a couple of land transfer documents to be signed and given to the bank.
    I don’t want to bad mouth anyone as there could be a reason, I just can’t think of why.
    I guess just venting as I thought maybe my expectations were off.

    Profile photo of RMAARMAA
    Participant
    @roslyn77
    Join Date: 2004
    Post Count: 21

    Just an update we’ve decided to keep the property at the moment.
    One thing I can’t fathom though, going a bit off track is that we’re finally ready to settle with the refinance and I haven’t heard back from my broker for nearly 8 weeks.

    Is this normal practice for a broker to get everything approved etc and then just disappear not returning calls or emails?
    I guess I’m a little disappointed as they came highly recommended.

    Profile photo of RMAARMAA
    Participant
    @roslyn77
    Join Date: 2004
    Post Count: 21

    Thanks for the reply Terry.
    We discharged around Jan 15 but moved in during the 13/14 FY (passed the 2 years for amendments) and about to make IP so i’m guessing that we’ve missed out on the ability to deduct any of the lmi cost.
    I wish my accountant had given us better instructions/advice.

    Profile photo of RMAARMAA
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    @roslyn77
    Join Date: 2004
    Post Count: 21

    Absolutely.
    I’m on the lookout but the time of year has killed me for that.
    We have some foreign investments that seem to have stumped them as well. Been waiting since Melbourne cup day for a response on that one.
    Might be another direct call to the ATO is in order but then I’ve been waiting for them since Julyish too. 😜

    Profile photo of RMAARMAA
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    @roslyn77
    Join Date: 2004
    Post Count: 21

    Thanks Benny.
    The size is nearly 450sqm so not huge but compared to what developers are carving up nowadays and charging a premium for it’s actually pretty good.
    The thought isn’t really out of left field because that was something we were considering actually.
    But good to have someone else who think’s it’s not such a crazy idea. It’s just getting them to agree.

    Profile photo of RMAARMAA
    Participant
    @roslyn77
    Join Date: 2004
    Post Count: 21

    Thanks for the insight Benny.
    You are right we bought a ‘solution’.
    Unfortunately as the place is 5-6 yo there’s not a lot we could do to add value to it at this stage.
    Also as it’s in an estate the covenants dictate a lot for the exterior.
    The positives are it’s part of the SE growth corridor of Melbourne, new (additional) train station due to the population growth, more schools etc. but there is a lot of land around to build on at the moment.
    It was actually the REA advice NOT to sell if we could help it because it is a ‘great property in a great location, getting a good rental return’.
    You’re right in that we’ve all contributed and earlier this year I painstakingly went through statement after statement to confirm how much so in any sale scenario we’re all working on the “carve up” would be equal thirds.
    Ethan, I think the above answers a couple of your questions but I’ll confirm.
    1 out of the 3 wants to “cash in” so the remaining 2 either take it over or sell. (my hubby to become #3)
    I literally have loan documents ready to sign but we’re just at the point where we all need to agree on a “sale” price. This also covers if we put it on the market.
    But due to the bank valuation we can’t borrow enough on the mortgage to pay out the third (they won’t accept that it’s only worth $460k because of the RE appraisal) so we’d have to borrow it from elsewhere.
    In regards to another purchase for a similar price, I’d probably look elsewhere to be honest if it is for shorter-term or manufacturing growth but the fact that NG on this is purely due to depreciation is attractive as this gives us cash to start paying down home. We knew when we bought this place that it would be a buy and hold type property.
    If we did sell though we also wouldn’t have enough funds to buy again in the short term.
    I keep coming back to that in reality we’re only purchasing a third of a house not a full house.

    Terryw I did query the valuation with our broker (I noticed that they put the house as older than what it is so not sure if that would have had an impact at all) but we’re using a lender with no LMI for CPA and I guess stupidly, I didn’t want to irritate the tenants with numerous valuers wanting access as our lease is coming up soon so we want to be seen as easy to deal with landlords.

    I guess the situation overall just had me kicking around in my head which scenario is better so I thought I’d put it out there if anyone had any opinions/ideas that I haven’t already thought of!

    P.S I had a chat with our accountant but unfortunately she’s just agreed with every scenario I’ve mentioned that it all is possible but not given any advice as to what they’d suggest based on our circumstance.

    Profile photo of RMAARMAA
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    @roslyn77
    Join Date: 2004
    Post Count: 21

    hey hybrid, 
    I had a loan with onedirect which i just recently refinanced elsewhere.
    I was quite happy with the products being offered but had a bit of fun with settlement originally – rather then liasing with my solicitor/conveyancer it seemed everything was being asked of me directly so i had to do the running around.

    Then when i discharged the loan there was more stuffing around as my 'mortgage manager' had moved on so noone was looking after my loan and the docs kept getting shunted elsehwhere which meant i got hit with the interest rate rise in early november last year from my new lender.
    Also one of the fees had increased of which i had not been informed about so i was overcharged and has taken me 6 weeks of regularly contacting them, throwing their own terms and conditions back at them that i have finally been granted a refund of this money. am still waiting on the cheque in the mail though.

    after this i'm a bit embittered especially when this is the treatment i recieved as staff!!

    regards, ros

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