Hello to you all. l need some suggestions. I have a finance issue in that l cant get it, except maybe with one bank. I have a mortgage broker (investor savy one ) working for me. Is it worth, or has anyone done this, where they have had more than one broker working on a funding solution for them. If the answer is yes to using another broker at the same time, can you recommend a broker who specialises in getting unusual deals across the line.
Second question. if l cant get finance through a mainstream, l will go down the path of a private lender. Does anyone have experience doing this nethod, can they recommend a firm, should l approach my property lawyers for this?? I know there are lots of online companies l can go through. Any advice would be appreciated.
THANKS
PAULINEThere’s little to if any value in getting more than one broker looking over the deal unless you don’t trust your initial broker. (in which case don’t use them). On the other hand ‘shopping’ the deal around to multiple brokers shows poor respect for a brokers time, as we’re only paid on the settlement of a deal.
All brokers get people who make contact like this and it’s very obvious – we generally decline the work immediately as it’s not exactly profitable to potentially be spending 40 hours for zero pay.
Even more dangerous if you apply for multiple loans simultaneously (through each of the brokers) – the lenders will see the credit hits come up and have them asking questions.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Thanks for your reply Corey. The last thing l would want is to waste a brokers time. Its just that in the past l have read of an investor doing this. I am desperate to get this deal across the line. its an unusual situation so hence the banks reluctance to fund. I would also not want multiple hits on my credit history. I though a broker probably has a good idea if its worth putting an application in without formally doing so and risking multiple credit hits. My broker says CBA maybe,but thats the only bank who has said maybe. At this stage we havent put a formal application in. Its not a bad credit rating, or equity issue, just unusual scenario.
Appreciate your answer
PaulineWhat’s the ‘unusual’ situation?
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
The other issue you need to bear in mind is a lot of Brokers will provide a Quote for their work performed upfront and sent this out with their Credit Proposal Disclosure.
You may find you get an invoice from the broker even if you decided to proceed with the other Broker who got your deal over the line first.
Totally agree with Corey. If i am aware a client is using another Broker or going to a Bank direct we immediately decline the work.
There is so many good deals out there at the moment a Broker doesn’t need to be doing a load of work for nothing.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Agree with the others.
Be patient and give your existing a broker the opportunity to find a solution.
If you give a brief rundown on your situation you might get some decent responses on here.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
ok this is a brief rundown of my situation.
My mother in law is moving into a retirement village and needs $500,000 up front to pay for it. Her PPR is a developement corner block in Templestowe Lower . It is in high demand both for buyers and for rentals. Naturally we dont want to sell and wish to develop the block ourselves. We are after a line of credit to finance her into retirement apartment and to fund her lifestyle once her funds in bank run out.
We are wanting to take out a line of credit with her, my brother in law and myself and my husband as co signees. We all have a good credit history and there is no mortgage on the house. The value of house is 1.1 million. House will be rented to pay interest on loan. If we put this house on the market it would be sold in 1 day. There are always call from local agents to my mother in law , trying to get her to sell.
But the banks dont seem to want to play with us. Broker says it is a unusal scenario, only bank that says maybe is CBA.
If we cant source loan from mainstream banks we will look at private lending. Does anyone have experience with private lenders. I know interest rate will be higher but l am committed to finding a solution to this, l do not want developers to profit from this land, it needs to stay in the family.
A reverse mortgage is not applicable as the trigger to repay this type of mortgage is leaving the property ( usually a death ).
Any advice would be appreciated-
This reply was modified 8 years, 2 months ago by
paulinek64.
Non owners cannot go on loans – they can, but no bank will allow it.
Your best option is a reverse mortgage – not sure why you think it not applicable.
Another option is to transfer part of the ownership – but stamp duty, CGT and other consequences.
Your MIL needs some good legal advice on the consequences.
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
There’s specific products for this – you don’t need to go down a traditional loan if the retirement village is an aged care bond etc?
Effectively they work as a facility which can creep up over time amortising the interest.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Your best option is a reverse mortgage – not sure why you think it not applicable.
Am also keen to know why OP see this type of mortgage as non applicable
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
We cannot use a reverse mortgage as we need $500,000 up front to pay for serviced apartment and reverse mortgages limit the amount borrowed, the most l have seen is 350,000 , so not enough. Also the trigger to pay back full amount occurs when the owner moves out of the home, in our case this is happening immediately. A reverse mortgage helps the owner to stay in the home, in our case our owner wants to move out of home at the beginning of the loan.
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This reply was modified 8 years, 2 months ago by paulinek64.
You might have to try an accommodation bond loan in that case.
Another option is for a family member to borrow and onlend to MIL under a formal loan agreement. Loan can be paid out from the estate (if MIL dies first).
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 looked into this for a client recently – Macquarie seems to have a product specifically for this purpose (accommodation bond)
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
If you do use another broker be upfront and offer to pay for the service.
Nothing worse than some one milking you for info with no intentions of engaging your services when you could be spending the time and resources on some one who is genuine.
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This reply was modified 8 years, 2 months ago by Colin Rice.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
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This reply was modified 8 years, 2 months ago by
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