- bruhamParticipant@bruhamJoin Date: 2003Post Count: 189
My new development is about to kick off.
Only trouble is that the loan is not to my liking ( I think). There are so many brokers on the northern beaches, I used the first one in the line.
I’m borrowing enough to complete one full duel occ. $225,000.
The loan, which I have the draft of is –
variable ! ( does this sound right?)
interest rate is 7.73%. ( too high?)
This doesn’t sound good to me. Am I right ,or just having an attack of stage fright ?
bruham.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Without more information it is difficult to assess the product but what i would say is that Macquarie being a securitised lender has relatively hefty early repayment fees when you discharge the loan.
Mind you if you sell the property within a 12 month period your Mortgage Broker will have all of the commission you had clawed back so he might not be too happy either.
It all depends on what you are after, development finance at residential rates.
Sometime depending on the size of the project you are better of to pay the going rate of interest and avoid the fees and charges.
We do a fair amount of commercial work but as i say is difficult to assess with all of the facts.
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
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Richard Taylor | Australia's leading private lenderTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
Sounds like the standard Macquarie low doc or no doc. Mac are pretty efficient-service wise and good with construction. I use them a lot for low docs.
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Send an email to get my newsletter.v8ghiaMember@v8ghiaJoin Date: 2005Post Count: 871
Hi Bruham. All the best with your project. Re the loan, if it is a lo doc loan, that rate is what you would expect for that style of loan – however if it is a fully verified loan, and supposed to be at residential mortgage rates, even though better than the ‘banks’ 8.07% type loan, there are better rates around that’s for sure. Then again, if there are special circumstances or service you received I am not aware of it’s hard to say what is good value or not. As they say, if it gets you what you want…….hope it all works out well.[strum]ducksterParticipant@ducksterJoin Date: 2004Post Count: 1,674
You may have been recommended the Macquarie Bank – Mortgage Saver Express Construction $200,000 Loan Product.
Ask your broker to provide you with the documentation for the loan product selected. LVR of 80% ?
There are many other reasons why the broker may have selected the product being recommended to you.
Depending on your employment situation, credit rating, LVR ,length of employment or how long in business you have been and most important – what matched your needs in a loan product and features.
Duckster Financial Services
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Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.