My daughter currently has a capitalized loan with Create finance Group and is refinancing with Bluestone Financial. What pitfalls should she be wary of? The loan was originally $120 that blew out to $220k in 12 months so she needs to re-finance the #220k at a better rate. She has 2 properties recently valued at $600k so security isnt a problem just finding it hard to get a better deal. bluestone have accepted her servicability and valuation but there must be better options available. One of the conditions of the contract was that she has to pay a $5000 spotters fee because she didnt go to bluestone direct. Any advice would be appreciated.
Its a bit ridiculous to pay a $5k spotters fee when the broker will get a commission as well. Maybe she should approach Pepper via a broker that doesn’t charge.Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
Thanks Terry and Jamie for your replies. Daughter got onto anther broker who advised her to pay for a valuation up front and he would see what he can do. He has come up with Latrobe Financial Services. Better interest rate and no spotters fee but they want $3500 establishment fee up front. I suppose thats to stop any further shopping around. Personally I`ve never dealt with these type of second tier lenders before. Which would be the better, Bluestone or LaTrobe?
Thanks in anticipation.
JimKinnon BellParticipant@kinnonJoin Date: 2014Post Count: 151
Why Latrobe or Bluestone? Having those as the options leads me to think there’s something out of the ordinary with your daughter’s situation such as adverse credit.Corey BattParticipant@cjaysaJoin Date: 2012Post Count: 1,010
Why Latrobe or Bluestone? Having those as the options leads me to think there’s something out of the ordinary with your daughter’s situation such as adverse credit.<i class=”rw-ui-like-icon”></i>0<i class=”rw-ui-dislike-icon”></i>0
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I’m with Kinnon on this one – is there a specific reason she is being funneled to these types of lenders – is she credit impaired or some other adverse reason than she can’t source mainstream finance?
Thanks Kinnon. What is out of the ordinary is that most lenders wont re-finance the capitalized loan. Credit reference is good but no history of repayments. Bluestone was happy with rent payments as proof of ability to make regular payments.
Yes Terry, I`m thinking La Trobe as well. I have been doing some internet research on La Trobe and they don’t seem too bad. I was concerned about exit fees but it seems such fees have now been eliminated except for small administrative and government charges. at least that’s what I have been led to believe by information posted on La Trobes web site.
I`ll let you know more about that spotters fee when I have more details.
Thanks for your help and info.
- This reply was modified 7 years, 3 months ago by jim.
It is unusual to have a loan that capitalises. What is her reason for not paying the interest and was this allowable under the terms of the loan?Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Jim, unless there is something we are all missing i would have thought you could do a lot better than either of these lenders.
Many lenders won’t do a loan where the interest has been capitalised unless the original loan documents allowed for it.
Did one thru the CBA Commercial only this week.
Yours in Finance