Hi Guys,
I recently refinanced from CBA to AMP. My initial purchase was for $310k @ 90%. I then refinanced to AMP for $340k @ 90%. There was LMI taken out of course. For some reason they came up with that there was only $13k available equity – this doesnt add up. Anyway, in the wisdom instead of capitalising the LMI and fees they decided to take it out of my available equity. This left me with about $5k in equity in the offset account instead of $13k which wasnt even right to start with, it should have been in the low $20,000's (unfortunately i cant remember how I worked out the exact figure, someone else helped me).
What I want to know is who is at fault? Is it my broker that didnt tell them the correct thing? Or is it someone that registered the loan pushed the wrong button? I have been requesting through my broker for atleast 3 months now to get it sorted for me. He keeps saying that he keeps requesting updates from his bdm etc and nothing ever happens. No one has ever contacted me from AMP which I find disgusting. Since I took up the loan 4 or so months ago I have taken out 2 other loans with Bankwest for some new purchases. They are losing my business and dont seem to care in the slightest.
There is no chance I will rest until I have that money back in my bank account and the right amount to begin with. There was literally no point in refinancing to lose the small amount of equity gained. I am so pissed off at the whole situation and unprofessionalism they AMP have displayed. I want to go to the ombudsman and will take legal action if it isnt sorted..
WHAT DO I DO!?!?!?!?!?!?!?!?!? PLEASE HELP.
Sash
Sorry guys I forgot to mention that AMP have refused to give it back and are trying to tell me stiff s#@t.
I cannot understand what you are talking about sorry.
Sounds like you are jumping to conclusions.Don't talk equity, talk figures and it may make it clearer. Money in an offset account is not equity – it is cash. Equtiy is the difference between the value of a property and the loan outstanding on it.
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
Hi Sash
I am with Terry mate i cant understand a word of what you are saying.
The letter of offer you would have received would have set out the Gross loan amount and all of the costs including LMI which would have been deducted on settlement. The letter of instruction you signed would have set out how you wanted the available funds distributed.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sounds like your getting mixed up with usable equity and what something else….not to sure where your getting most of your numbers from??
1.What value did the AMP valuation come up with?
2. Wat was your loan amount with CBA ( refinance amount)
3. How much was your LMI?Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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My quick attempt at putting numbers to the situation:
If you had done the same refinance with CBA rather than going to AMP, you should have received 90% of the $30k difference = $27k cash to reinvest / do what you want with that you didnt have before, less the LMI, lets say maybe $5k = $22k This is the amount that you would have had sitting in your offset account with the same lender, but you would have expected the same result, when moving to a different lender.
mattnz is on the money with the figures.
What i'm trying to say that the AMP valuation was $340. the outstanding loan amount with CBA was $283. The new loan amount with AMP is for $306. I want to access the $30k hence the reason for the refinance. They some how came up with a figure that the refi would allow me to acces $13k in cash. To start with this figure is too low as mentioned by mattnz above.
From $13k they took out $8k in LMI and all that stuff which seems a bit high leaving me only $5k cash in the offset account instead of $13k which should have been $22k.
I clearly dont know much about finance but anyone knows that LMI and fees would usually always be capitalised. In my case I have now lost about $17k (already received $5).
Does this make sense?
Qld007 – wouldnt a broker always capitalise anyway? if not he should have asked me yes?
LMI is not usually capitalised. Not many lenders allow this now I think. How long ago did you pay LMI on the first 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
about 2 years now. last time they just added it on top
Too late to can a refund then. All this changing banks costs so much when you add in the LMI.
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
Sash – No not all lenders capitalise LMI as Terry mentioned.
If it was deducted on Settlement this would have been outlined in the letter of offer which you signed.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
AMP dont allow LMI cap above 90%.
From your figures it sounds like you have some money in your redraw when you refinanced?
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
P.s 90% Max for refinance anyway + not existing customer.
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Sash wrote:mattnz is on the money with the figures.
What i'm trying to say that the AMP valuation was $340. the outstanding loan amount with CBA was $283. The new loan amount with AMP is for $306. I want to access the $30k hence the reason for the refinance. They some how came up with a figure that the refi would allow me to acces $13k in cash. To start with this figure is too low as mentioned by mattnz above.
From $13k they took out $8k in LMI and all that stuff which seems a bit high leaving me only $5k cash in the offset account instead of $13k which should have been $22k.
I clearly dont know much about finance but anyone knows that LMI and fees would usually always be capitalised. In my case I have now lost about $17k (already received $5).
Does this make sense?
Im still a bit confused ? as your trowing random numbers around and i dont know how you calculated these numbers- ie where did the 13k come from?? and the 30k?
Valuation – $340 x 0.9 = $306,000
Loanwith CBA = $283k ( presuming no redraw)
Current loan with AMp = $306,000So im guessing you got $283k straight refi + $23k = your new loan with AMP of $306,000 = 90% LVR
Not sure how you paid for the LMI? or where…
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Valuation = $340k x 0.9 = $306,000
CBA Loan = $283kCurrent Loan AMP = $306, 000
LMI Paid was $8000 Correct ?
so you paid off the CBA loan with the $306,000 leaving you with $23,000 (306,000 – 283,000)
Take out the LMI you should have $15,000 in equity. (23,000 – 8,000)
A loan account with -$306,000
and an offset account that should have $15,000.Unless you asked for the proceeds to be disbursed to a different account?
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