All Topics / Finance / finance for quick reno sell

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  • Profile photo of Rookie DeveloperRookie Developer
    Member
    @rookie-developer
    Join Date: 2005
    Post Count: 188

    Hi
    I hope someone can help me with this. Brokers please feel free too!
    I am doing a couple of quick reno sells & would like to find finance with little to no entry & exit fees as they become quite substantial when it is over just a few months. this shifts the effective rates through the roof.
    I am after a loan with the lowest TOTAL costs including interest & fees, not just a low interest rate
    I am sure many out their in reno land are in the same boat

    Troy

    TroynBec

    The ducks are flying closer to home!!!!

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    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    One of the standard loans wiht a major bank is probably the way to go. eg Bankwest’s Lite Home Loan, 6.65% with about $300 in exit fees.

    With brokers, we usually have to give back all or most of the commission if the client’s loan is repaid within the first 12 months.

    Terryw
    Discover Home Loans
    Parramatta
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    Profile photo of mikebluemikeblue
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    @mikeblue
    Join Date: 2005
    Post Count: 27

    And that one you mention there is the one I typically use, but am thinking twice about it now because where I was payintg $500 in Est. fees as an individual, now that I am operating through a Trust, the sting is $800 Est. Fees and then the $300 to bail out.

    There surely must be a cheaper option than $1100 in fees alone on top of your interest.

    Regards

    Bluey

    “Its all beer and skittles really.”

    Profile photo of mikebluemikeblue
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    @mikeblue
    Join Date: 2005
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    And that one you mention there is the one I typically use, but am thinking twice about it now because where I was payintg $500 in Est. fees as an individual, now that I am operating through a Trust, the sting is $800 Est. Fees and then the $300 to bail out.

    There surely must be a cheaper option than $1100 in fees alone on top of your interest.

    Regards

    Bluey

    “Its all beer and skittles really.”

    Profile photo of AmandaBSAmandaBS
    Participant
    @amandabs
    Join Date: 2005
    Post Count: 549

    We use a CBA Business mobile lender and she set us up a variable loan at 5.99% which we’ve used twice so far on a reno and sell. When we sell the property we pay the loan down to $10k and then reinstate the loan for the next purchase. No establishment fees providing we don’t repay in full within 5 years.

    Amanda
    “It is better to be inconspicuously wealthy, than to be ostentatiously poor…”

    Profile photo of mikebluemikeblue
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    @mikeblue
    Join Date: 2005
    Post Count: 27

    Amanda BS,

    You just made my day. I’m on it.

    Best regards

    Bluey

    “Its all beer and skittles really.”

    Profile photo of mikebluemikeblue
    Member
    @mikeblue
    Join Date: 2005
    Post Count: 27

    But when you reinstate the loan, is the security over the new property, or over a consistent property such as your own home. I am wondering how the bank does not stiff you for valuation fees and so on.

    Thoughts?

    Bluey

    “Its all beer and skittles really.”

    Profile photo of Stuart MilneStuart Milne
    Member
    @stuart-milne
    Join Date: 2006
    Post Count: 196

    I know of a lender who will give you 90 days to find your next security property and will foat the loan unsecured for this time, which means you can look for your next property while yours is on the market and when you sell you take your loan with you and never have to pay it out. It’s portability with a huge difference – If you haven’t found your next you then have 3 months to come up with the goods before your loan expires and you get the fees. Now you gotta be happy about that…

    Stuart Milne
    Non-Conforming Specialist
    READY Mortgages
    http://www.readymortgages.com.au
    [email protected]
    Mob: 0404 056 055

    Profile photo of AmandaBSAmandaBS
    Participant
    @amandabs
    Join Date: 2005
    Post Count: 549

    With the CBA they have us on a “Wealth” package (ie. debt over $500k) which entitles us to a .5% interest discount on all our loans plus no bank valuation fees.
    We do pay an annual fee of around $300 but we’re well in front I think.

    Amanda
    “It is better to be inconspicuously wealthy, than to be ostentatiously poor…”

    Profile photo of brahmsbrahms
    Participant
    @brahms
    Join Date: 2004
    Post Count: 485

    with minimal discretion we (humble mortgage broker) write 0.7.% off $250k aggregate borrowinigs – btw not blowing my trumpet, do same AND BETTER for many other funders.

    cheers

    brahms
    Purveyor of Fine Finances
    aka Mortgage Broker Brisbane

    Profile photo of Rookie DeveloperRookie Developer
    Member
    @rookie-developer
    Join Date: 2005
    Post Count: 188

    Thanks to everyone for contributing
    Amanda, you say annual fees of $300 but no valuation fees. are there any establishment fees or similar?
    we have a great relationship with Bendigo bank & would like to remain loyal to them as they have to us over the years. they are not very creative in their thinking however we have managed to change their thoughts a couple of times in the past & hope they can provide something to suit us now. however we need to look after ourselves 1st so we are looking to find the best deal possible.
    Does anyone else use/provide a loan/package that suits?

    thanks again everyone with your help

    Troy

    TroynBec

    You can have more than you’ve got because you can become more than you are

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    Profile photo of Stuart MilneStuart Milne
    Member
    @stuart-milne
    Join Date: 2006
    Post Count: 196

    Amanada last time I checked the CBA’s Wealth Package it was on a “relationship balance” of $150,000 or more and the Wealth Package Plus which was the superior by far product was on a “relationship balance of $250k.

    .7% discount is great but it’s only off the standard variable rate which in most cases isn’t much better than you can have your broker negotiate for you without the annual fee…

    I think perhaps brahms forgot to mention that part…

    Shop around. If your bank won’t play walk…

    Stuart Milne
    Non-Conforming Specialist
    READY Mortgages
    http://www.readymortgages.com.au
    [email protected]
    Mob: 0404 056 055

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