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  • Profile photo of jimjim
    Participant
    @james22
    Join Date: 2015
    Post Count: 3

    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!
    Jim

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    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.

    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

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    $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
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of jimjim
    Participant
    @james22
    Join Date: 2015
    Post Count: 3

    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.
    Jim

    Profile photo of Kinnon BellKinnon Bell
    Participant
    @kinnon
    Join Date: 2014
    Post 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.

    Kinnon Bell | Kinetic Funding
    http://www.kineticfunding.com.au
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    Mortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    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 Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post 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.

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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
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of jimjim
    Participant
    @james22
    Join Date: 2015
    Post Count: 3

    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 7 years, 3 months ago by Profile photo of jim jim.
    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    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 Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post 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.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

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