Hi
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.
Thanks!
JimIts 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.
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
$5k spotters fee! I’ve never heard of such a thing.
Hit up Terry W above for a second opinion.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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.
JimWhy 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.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
La Trobe would be better probably – but she just needs to weigh up the fees and rate.
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
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.
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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?
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
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.
Jim-
This reply was modified 8 years, 10 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?
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
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.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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This reply was modified 8 years, 10 months ago by
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