damn my financial broker gave me the wrong info, said i can loan 90% of my property purchase and get a Fixed Rate Interest Only for 5 years at 6.44%. He sent in the application, and now, just 1 week before i must have the finance ready and approved, he rings back and says he got the wrong info and Homeside only gives 90% loan to either
1:Principle and Interest
2:Interest Only 5 years VARIABLESo now my only option is to either raise 20% to get the standard 80% loan, or go variable interest only, or apply for another bank!
Do u guys have any recomendation which bank can approve loans quickly or one that has Interest Only FIxed Rate 90% loan???
HELP!!!!!!!!!!!!!!
Ah,
Welcome to the problem of trying to organise finance. It has been a consstant source of frustration for me that financiers tell you one thing and end up doing something different at the 11th hour.
I can’t give you a recommendation as such, as I think that any lender will have trouble will stuggle inside one week (they need to get loan docs signed etc.).
As such, I’d be tempted to go with the I/O variable loan (the interest should be cheaper than it’s fixed cousin), but on the basis of understanding the payout costs should I refinance at a later date when you have more time up your sleeve.
That will mean you can still setlle on time but can also refinance later with hopefully no/low penalities.
Also – make sure your broker refunds any application costs for stuffing you around.
Good luck,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
the discharge fee for the 5 year Variable interest only is $200. Is that expensive?
the var rate is 6.11%, the fixed was 6.4%or should i go for HOMEPATH which FIxed Rate Variable is only 5.65%???
ok so what will happen if i dun get the finance approived and the contract goes ‘unconditional’? what does that mean?[
!]Hi,
You need to make a decision… quickly.
If your contract goes unconditional then it means that you will have to come up with finance… that is, you can’t back out.
You need to work out the cost:benefit of each loan product and go with the one that best suits your investing purpose.
$200 isn’t a big penality, but I’m cunfused with the ‘5 years’ business. What happens after five years… do you need to refinance at the prevailing interest rate? Seems odd.
Five year I/O fixed… no problems. But five year I/O variable? Why not a 25 year loan with an initial 5 year I/O period?
OK – gotta get home or Julie will be most displeased. [
]Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Just had the same thing happen to us. Organised finance, Mike went to bank to sign…uhhh..oohhh, something fishy with interest rate? That’s not what our broker told us… On to the broker, who then apologized…said would call tonight…no call.
Okay, so now I’m on the phone to another broker myself and I will fix this up.
The problem with the broker’s stuff up, is the fact that
A) we can’t do our numbers unless it’s on a hypothetical interest rate…
our onseller’s are waiting for us to let them know how much they will need to pay (this is tomorrow night deadline)
C) we wanted to settle early… fortunately this isn’t too bad, because I organized early access, at least they can mow the lawn!This new broker won’t touch anything under 100K. Their loss… obviously their kick back isn’t going to make them rich on my measly sum… [
]
No probs…I’ll just get Back to the drawing board….
One door shuts, another opens…
Cheers
Sooshie []There are no problems, only solutions
Fullout
If your loan has been submited you will have an inquiry on your CRAA. Not such a bad thing as you could explain it, but still another enquiry!
Have you considered ING, 5 year fixed at 6.29%. Interest Only up to 95% LVR. this is a cheap rate. reverts to standar rate after 5 years. The average 5 year fixed rate is about 6.44% at present.
Heritage BS is low too; only 6.39% 5 yr fixed IO.
Terryw
[email protected]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
terryw,
eh what is a CRAA?[]
I tried ING but they dont do in Churchill which is a countrytown.oooooh guys,
it tihnk i wont have the time to get another lender other than homeside, which is waiting for me to choose P&I loan at Fixed rate, OR IO loan variable at 6.11% (with $200 discharge fee). Bascially they have approved the property and everything, just waiting for me to choose which plan.Should i go fot the IO variable now, and then later refinance? uuuuuuuuuhhhhh.
Fullout
CRAA is your credit reference file (i forget what the letters stand for).
You should get a copy of your own file just to see what’s on it. This is what the banks check, every time you apply for credit there will be a record. And any default etc will be listed.
see http://www.baycorp.com.au , You can get a copy for free.
Terryw
[email protected]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
FulloutCRAA is your credit reference file (i forget what the letters stand for).
You should get a copy of your own file just to see what’s on it. This is what the banks check, every time you apply for credit there will be a record. And any default etc will be listed.
see http://www.baycorp.com.au , You can get a copy for free.
Terryw
[email protected]hi went to the web site and they are charging $20 for a credit file maybe i’m looking in the wrong place.[?]
cris[?]Try http://www.baycorp.com.au/personal_information/free_credit_services.asp?CountryID=1&UserTypeID=11
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.auI noticed your thread last night, but waited until this evening to reply.
I’m a broker (7 years) and deal with Homeside regularly. I have written similar loans for clients, but just to be sure, checked with my business development manager today, and you can have 90% fixed five years interest only.
I think you should go back to the broker and check.
oZbroker,
i called my broker and he said it was actually HOmeside didnt even know what products they can give me with the 90% loan. It seemed that the Mortgage Insurance company called Homeseide and told them they cant do it for IO Fixed Rate. And homeside apologised to my broker about it, cos they actualy approved the loan on the 16th May and 2 days later came back and told my broker that no, they made a mistake.
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