Couple of questions to those more experienced…
1.After reading a bit about Wraps, i’m a little confused…. If the ‘Wrapper’ has used finance to purchase the property then how will they have the ‘title’ in hand??? Isn’t it a stipulation that the Wrapper must have the title to be allowed to Wrap a property? Or is it adequate for the mortgager to be holding it on your behalf?
2. What are the feelingS on wrapping to clients who have good savings and excellent credit ratings but cannot secure finance because they are older. I have potential clients (a couple) who are around 50. At that age, they will be paying off a mortgage until they’re 75-80. Is this a viable business transaction. This may sound morbid, but what happens in the case of a death?
Thanks for your help, it’s very much appreciated! [inlove]
***There’s no such thing as tried, just DID or DIDN’T!***
(This is my favourite quote, i stole it off a ski lift in NZ!)
The title passes to a purchaser on settlement of a property transaction. That title simply has a mortgage over it meaning that any sale of the property would need to address the mortgage before title can pass again to a new purchaser. It is not a big deal.
If the clients are about 50 now, they should have no problem getting a mortgage. In any case, if they a wrapping, they would want out as quick as they could to take advantage of cheaper rates. They will only be with you for a few years.
Also, lenders cannot discriminate by age. If they can service, they can get the loan! Tell them to find a good mortgage adviser.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Most wrappers have loans on their properties, therefore banks holding the title. This is standard practice.
I agree with mortgage advisor, age cannot be used to discriminate. But if you think it is a factor now, then what about your clients cashing you out?
Terryw
Discover Home Loans
Mortgage Broker
Click below to email meTerryw | 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
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