Government search fees by ANZ

Viewing 12 posts - 1 through 12 (of 12 total)

s0805
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@s0805
Join Date: 2006
Post Count: 85
May 9, 2013 - 11:10 pm
Hi there,
Quick one, I am planning to convert my existing P&I loan to IO only (for 3 yrs) for my PPOR with ANZ. I am part of their breakfree package.
Now, apparently they have changed the process so I've to do the full application…..I've the done the full application via broker…received my loan docs and it says the charge of $15.80 (Government search fees). I just don't get it why they have to charge this fee when I am just changing it from P&I to IO. Also, my remaining loan term is 25 yrs,,,,but I am asking to make it 28 yrs ( 15 remaining + 3 IO years), is that why?
Can any of the brokers please confirm/advise, this just doesn't sound right to me…..
cheers
S0805
Jamie Moore
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@jamie-m
Join Date: 2010
Post Count: 5,069
May 9, 2013 - 11:13 pm
Yep, sometimes a change like this is considered credit critical by ANZ so a whole new app is required. If you're not changing the borrowing amount, you might be able to make the change in branch.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
May 9, 2013 - 11:19 pm
It would probably be a title search.
They would have to check title again and see if there are any writs or caveats.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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s0805
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@s0805
Join Date: 2006
Post Count: 85
May 9, 2013 - 11:19 pm
Hi Jamie,
Yep, I am not changing my loan amount….but should i be worried that on loan docs the amount it stats is different than my actual current balance….I had asked my broker but he said that's fine…I am not sure on this as well cause I am signing on this legal paper accepting the new loan amount…..
what about fees is it normal on changing loan from P&I to IO.
Jamie, your advise pls….
cheers
S0805
Jamie Moore
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@jamie-m
Join Date: 2010
Post Count: 5,069
May 10, 2013 - 3:17 am
Hi again
Whenever a new loan is originated there's usually going to be some fees involved.
If you're concerned, just ask your broker to spell out what they're for.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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Mortgage Broker assisting clients Australia wide Email: [email protected]
s0805
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@s0805
Join Date: 2006
Post Count: 85
May 10, 2013 - 4:09 am
thanks Jamie…..
PLC
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@plc
Join Date: 2012
Post Count: 400
May 10, 2013 - 7:19 am
As Jamie mentioned, you're most likely going to be charged some type of variation fee for the change, and any accrued amount of interest that hasn't been paid would be added to the loan amount at the time the loan documents were done in the first circumstance.
Cheers
Tom
PLC | Phoenix Loan Consulting
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Melbourne based Mortgage Broker | Making Finance Simple
s0805
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@s0805
Join Date: 2006
Post Count: 85
May 11, 2013 - 7:40 am
Thanks Tom….
I am just surprised that by changing the P&I to IO with the same loan balance could trigger this Title search fees ( curious to know the logical reason for it……)can't avoid this fees anyway
Regarding Loan amount, it is not the accrued interest either, my loan balance is 219xxx.xx, but the loan docs says 220K (seems like they/broker have just rounded it off)…..anyway I've made it clear that I am not singing the docs until they get the loan balance right……
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
May 11, 2013 - 11:37 am
s0805 wrote:
can't avoid this fees anyway< .
Are you saying you cannot afford $15.80?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
s0805
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@s0805
Join Date: 2006
Post Count: 85
May 11, 2013 - 1:02 pm
Terryw wrote:
Are you saying you cannot afford $15.80?
Terry, it's not the question about affording or not……i can afford 5K doesn't mean i pay that
it's about the logic behind fees getting charged for the same loan, balance, same security….if in the past same process was handled within branch by same lender without full application then why fees now?
Surely, anyone paying $15.80 or $0.01 in fees can ask a question……
cheers
Terryw
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@terryw
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May 11, 2013 - 1:24 pm
No you have a right to ask. I was just curious because you said you couldn't afford it!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
s0805
Participant
@s0805
Join Date: 2006
Post Count: 85
May 11, 2013 - 1:35 pm
Terryw wrote:
No you have a right to ask. I was just curious because you said you couldn't afford it!
Sure, I prefer to avoid it if i can…