Hi everyone,
Happy new year !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I have been in conversation with alistair for the last couple of days regarding home loan structures.
At the moment the structure that I have got is not the right one
He suggested an offset account 100% against the home loan.
It looks like I have to refinance and I was looking at destiny financial solutions at the moment.
Has anyone had any experiences with this company ?
Any ideas
Thanks karlmHi karAs a far as I am aware the company which is run by Margaret Lomas operates on a franchise basis so the service and level of knowledge is as you would expect from any franchise – as good as the owners.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Scrub my last post as i didnt even get chance to finish writing so I will start again.
Hi karlm
As a far as I am aware the company which is run by Margaret Lomas operates on a franchise basis so the service and level of knowledge is as you would expect from any franchise – as good as the owners. From a check of the branch owners i dont believe any of them are Licensed Financial Planners.
Why not get an opinion by all means (as long as there is no charge) and see what other recommendations you receive.
I run a boutique mortgage brokerage where we structure and development loans for clients through appropriate entities to ensure that they are suited now and in the future.
Too many MB’s with little experience merely want to receive the commission from doing a loan rather than building up a longer term relationships with their clients.
Might have a few of my clients on the forum here who can comment.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
I’ve been to an initial meeting with Destiny Financial Solutions. I was impressed with the branch at Clayfield, Qld.
Margaret makes all members undertake extensive training.
My suggestion is to go to a branch in your area and talk to someone.
I will becoming a member this year.
Hope this helps…… Try the web site at http://www.destiny.net.au
Hi barbara,
I have been looking at them for a month or two now.
I bought her books and read them all and she still recommends the line of credit but I am sure she does not mention the 100% offset account against the home loan.
What sort of costs were involved for you ?
The only reason I ask is the people we are with they charged the wife and I $4200 for so called monitoring fees plus if we were to refinance it would cost us about $6500 for break costs.
That in my language is $10,000.
That is a lot of money especially when its not the right home loan I think.Wow that is alot of money especially when most mortgage brokers would do it for nothing.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Yeah I think they saw us coming
Originally posted by Qlds007:Wow that is alot of money especially when most mortgage brokers would do it for nothing.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Hi QLD007,
What would you suggest ??????The normal structure we establish for our clients depending on the circumstances is:
1) Interest only home loan linked to a 100% offset account.
2) LOC against the PPOR to 80% LVR to be access solely for investment purposes i.e deposits and acquisition costs.
3) Interest only loan – stand alone against the security of the IP.
held in an HDT.No loans X Collateralised if possible.
Not all lenders allow this form of structure and the terms, conditions and pricing vary considerably.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Thanks qld007 for the info.
Whats a HDT stand for ?
Thanks karlmHybrid Trust
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Thanks again qld007 for your input.
Am I able to ask what sort of structure the master himself has got.
I am referring to steve himself in his book he mentions the offset account against his loan is this still correct ?
Thanks karlmOriginally posted by Qlds007:Hybrid Trust
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Hey Richard, you forgot the “D”
Hybrid Discretionary Trust
Terryw
Discover Home Loans
[email protected]
Send an email to get my newsletter.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
karlm63,
I was quoted a fee on $2,970 for a Destiny System fee and $396 for a Analysis fee.
As i wasn’t sure if I would be able to handle a LOC properly. I’ve gone away and am trying to live off my credit card as they recommend. I’m waiting till the end of March before going back to see them again.
This type of loan makes sense to me as it pays the loan off quickly and you have money to use towards your next property
my goodness!
Terryw
Discover Home Loans
[email protected]
Send an email to get my newsletter.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Barbara,
The reason I am asking you these questions is because it looks like we might have to refinance sooner than later !!!!
The current institution we are with can not link my home loan to my LOC because they said it can not be done which I think is a load of rubbish because they would be the only institution that does not set it up that way!!!!!!
Plus they took $4200 in monitoring fees and it looks like about $6000 to $6500 in break costs!!!!!!
What sort of structure did they recomend for you, you did mention a LOC ?
Living off your credit card is easy as long as you do not go over your limit.
Thanks karlm63karlm
They didn’t go through a structure with me as yet, once I told them I might not be able to resist my spending on the credit card, they said they wouldn’t really be the company for me, as the whole structure of there product is taylored to using a LOC. So i told them i’d get back to them in a couple of months.
From some comments i’ve been hearing on the forum LOC might not be the way to go for me. I wasn’t aware that LOC’s have an affect on the interest that you can claim from the tax man. It seems that a 100% off set account does the same thing and would get rid of the tempatation to spend additional funds (an issue that concerns me).
It also seems from what your saying that there would be additional costs for me to refinance my existing loan. Would have to confirm this with them though.[confused2]
Another reason I was looking at using this company was the motatavation factory and the idea that they would keep me focased on the final goal of being financially free. Might have to log onto this site for that though.[thumbsupanim]
Hi Barbara,
I dont think a LOC is that bad !!!!!!!
I have one and is split one for investment purposes and the other is for personal purposes.
After saying all of that and enquiring on this forum the majority are saying a 100% offset is the go !!!!!!!!!!!
Would you keep us informed please.
Thanks karlmBarbara
Yes good money if you can get it.
As both Terry and I have stated there are reasons why you would use a LOC but certainly not where you intend to use for a n IP and have your salary and rent paid directly into as it imediately negattes the Tax deduction you would get on the interest.
There are many lenders that are doing deals at the moment and that includes giving you a rebate back on application fees etc so refinancing isnt that expensive after all especially if it your loan is established correctly and you do not have the problems going forward.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Qlds007 wrote:
The normal structure we establish for our clients depending on the circumstances is:1) Interest only home loan linked to a 100% offset account.
2) LOC against the PPOR to 80% LVR to be access solely for investment purposes i.e deposits and acquisition costs.
3) Interest only loan – stand alone against the security of the IP.
held in an HDT.No loans X Collateralised if possible.
Not all lenders allow this form of structure and the terms, conditions and pricing vary considerably.
Qlds007,
Can you help me understand “stand alone against the security of the IP held in HDT”?
Is this a 100% lend or with Percentage LVR? I thought for a first timer, the bank would take a security of sort, eg. a term deposit of equivalent amount in lieu of 20% deposit for 100% lend. Afterall, I’m not in the big league that they’ll fall over to get my business.karlm63 and Babara,
On the issue of Offset – I’ve taken on board the suggestions of MBs here and now have a keycard linked to only my Offset account. The amount of interest saved is sizeable and it does not interfere with tax deductibility of the loan interest as the loan is not paid out each time you deposit into it, or draw down for personal use. Much better than an LOC, that’s purely my opinion.CT
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