Has anyone got a Destiny Global Mortgage product from Margaret Lomas' company 'DFS'?
It seems to be a global limit product secured at 80% LVR on whatever property you offer as security. I want more info without going through the dramas and talking to their mortgage brokers and having them try and sell me.
Who underwrites this product? Can I simply go to the bank myself and get it?
thanks
Fred
Treser
Might want to do a search first on the top and see what has been said previously !!!
There is no magic on what is recommended in fact as someone who is very Anti Cross Collateralising Securities I am one of the biggest critics of adopting such a strategy.
Richard Taylor | Australia's leading private lender
While I enjoyed reading Margaret Lomas' books, and her passion for property/building wealth through it, I would never agree with this type of product. The above comments form QLDS007 have been made for a reason (ie they are spot on as you would normally expect !) , and in all fairness, why would anyone want to go with a policy or structure that can and will stifle their flexiblity and hand what is effectively unlimited control to the lender. Did you know, that a lender is within their rights to ask for all sale proceeds of a sold property that is bundled into a cross secured loan like this in some circumstances (short explanation, in an extreme situation – but I have seen it happen).
In most if not all casses, you do not have to set up a loan with this type of product. Sure, it may mean having your loans with more than one lender at some stage, but it gives you the most safety and flexibility.
The shorter answer, is don't get one!
Cheers
v8ghia wrote:While I enjoyed reading Margaret Lomas' books, and her passion for property/building wealth through it, I would never agree with this type of product. The above comments form QLDS007 have been made for a reason (ie they are spot on as you would normally expect !) , and in all fairness, why would anyone want to go with a policy or structure that can and will stifle their flexiblity and hand what is effectively unlimited control to the lender. Did you know, that a lender is within their rights to ask for all sale proceeds of a sold property that is bundled into a cross secured loan like this in some circumstances (short explanation, in an extreme situation – but I have seen it happen).In most if not all casses, you do not have to set up a loan with this type of product. Sure, it may mean having your loans with more than one lender at some stage, but it gives you the most safety and flexibility.
The shorter answer, is don't get one!
Cheers
As an investor you will often need to use different lenders because of the way servicing calculations are made, you need flexibility if you want to maximise your lending potential, hence x-coll is generally something to avoid. In many cases it also adds to the cost of mortgage insurance. I have no idea who the actual lender is in this case, but I would suggest that in the current environment it is best to stick to the banks where possible.
thanks for the comments All. I got a reply email from the DFS guy who ofcourse wouldn't give up any details unless I met with him
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;-)” title=”>;-)” class=”bbcode_smiley” />I think that Destiny recomend St George's portfolio product. It is a great product for a LOC, but a slighly higher rate than the standard variable loan.
I to would never recomend cross collateralising your properties – too restrictive and hard to untangle later. And, if you are going to get a LOC i would recomend you only do so for the excess equity in your property. Using a LOC for a standard investment loan could be a disaster from a tax point of view.
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
I got a loan from a Destiny branch and they didn,t recommend that loan for me. I don't think they have a set loan that they reccomend but like a broker hopefully give you the loan that is best for you.
Athers
Athers, just for interest, what type of loan did Destiny recommend for you?
;-)” title=”>;-)” class=”bbcode_smiley” />
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