Forum Replies Created
When you have trusts it’s a bit more complicated:- even the people makin the fees up are not that smart. I did one with 6 guarantees and we were charged $200 for one guarantee fee because CBAs guarantee fee is per borrower not per guarantor; as strange as it is.
They might also try a trust vetting fee which is where they have their legal team view the trust deed to make sure the trust is able to borrow;
Ask the following;
1. Do the trust deeds need to be sent to legal; if so at what cost?
2. Re 1. Is it two fees due to two trusts
3. Do you need to pay guarantee fees
4. Can they waive the app fee on the economiser ; $600 (take the 3 year initial discount; no monthly fee for the life of the loan)Come back after the meeting and give us an update…
Banker
Keep an eye on the fees. You will pay additional guarantee fees of $200 per borrower and a $150 settlement fee. If you take the wealth package (350 p/a) this will not cover any accounts in personal names. You might find your self better on the economiser. It has nil monthly fees and the manager can waive the 600 app fee.
If you shoot me a private message I’ll reply with a CBA contact for you. If the title is in the name of two companies as trustee/ tennents in common- you don’t want a vanilla call centre or branch manager…
It would be less hastle to change banks. Westpac has some issues round company as trustee as well:- they can do it however it’s out of policy and you need to go direct to someone that can print docs (their doc prep team in SA don’t do trust contracts:- contracts for brokers nationally are printed in SA).
CBA would do the deal not probs:- company trustee is fine for retail loans at CBA.
Nab: – I’m not sure. They have alway struggled with retail lending so I would try them last…
How much is the security worth and how much do you want to borrow?
Gary78,
I see where you are coming from.
Is the loan for invesment e.g. interest only?
Let’s run some calcs at 5 years int only, noting most people refinance or restructure to buy more property.
If you go 5 yrs IO and include all establishment, Val and exit fees it will be a more realistic comparrison.
Banker
They also have a dig at brokers on their site saying they don’t deal with anyone that accepts commisson however they are brokers themselves; just selling various lenders white label products.
They give me the heebeee jeebeees… Stay away….
Go to there website and refer to drop down menu ‘our story’
quote: ‘The funds for our loans are supplied by Australia’s largest wholesale funders’
They are a mortgage manager; albeit a bit bigger than some ofthe single person operators. If they had GE, ING or Challenger as their funders they would have many clients that got burnt. As mentioned above; I simply wouldn’t go near a Mortgage manager: Ever!
Also note the dodgy wording on their standard variable pricing. It says no deferred establishment fee if the loan is repaid but not discharged e.g. You can pay the loan off but not get your title back. Scroll further down and it says if they do release the title it costs 1.0% of the original loan amount.
What gives me the craps most about companies like this is the way they try to hide the fees…
What LVR do you need. You mght be able to do this at 80%?
Two years tax assessment notices are acceptable by some lenders:- even self employed clients. If you can service on this basis you might not need to provide any tax returns or payslips.
wobblysquare wrote:Exit Fees, why would i pay?
If PMG (or whoever i borrow money from) goes under, why would i be expected to pay exit fees? If a new group takes on their mortgage portfolio wouldnt it be with the same conditions (that i signed under). If no-one takes on their mortgage portfolio where does that leave me…don't i have to just refinance as i like? I am doubting here that i dont have to repay the loan…otherwise if my lender went under it would be time to celebrate!they can transfer your account to another mortgage manager. They can also jack up your rate so it is worth the new managers time to look after you: that is assuming you are variable. In the case of GE they just stopped lending but still charged fees if you left. I really don’t see the point if the rate is similar to what you can get at a bank? 1000s of people have been burnt.
For those who don’t know the structure of a mortgage manager:
A mortgage broker can go to a lender like advantage, firstmac, GE etc and sign a mortgage management agreement. These are often referred to as white label loans. The funds come from the lender on a wholesale basis. When the lender sends statements they go out on the broker / mortgage managers letterhead.
Problem is when the broker / mortgage manager moves on, goes broke, goes to work in a bank etc you are left without your contact person. If you call the bank / lender ( in this case NAB) they will simply refer you back to your broker / mortgage manager.
I’ve met people who can’t even find a person to change their repayment date, postal address, or provide a loan increase. In some cases the broker has moved and the address and phone number on the statement is no longer current.
The reason the CEO answers the phone is that he is most likley just another broker with a laptop in his bedroom.
P.s. White labels are provided at a base rate. The broker adds a margin as their trail income. The lower the rate the less the broker is making. If they are under cutting the banks don’t expect any service; they can’t afford staff and will be out of business in no time…
The banks don’t have policies re how long to wait after you are discharged to get finance.
You simply need to convince them all is in the past and you are now in a strong position. You won’t get mortgage insurance so max 80%. It will be easier if you work PAYG rather than start a new business. If the banks don’t go with it try Liberty Financial or Pepper Home Loans (these are the two of the bigger non-conforming lenders).
Which lenderr are you using. Most banks approve their own deals and LMI is automatically approved. This does not work when you use a smaller lender: I would assume this is a small regional bank or non-bank lender. If so try a major…
Because if the funds are in a seperate offset account; interest is charged as if it was in the loan; therefore the same effect as the first example from an interest saving point of view.
If you spend the funds; the loan has not been touched; the loan was still 100% used for the investment therefore the full amount still deductable… Protects your tax benefits.
You can redraw but that portion of the loan is only deductable if redraw is for business or investment use.
E.g. If you pay extra and then redraw 20k for a holiday. That 20k is not deductable. Offset is better.
Richard:- check both CBA and Westpac. They both offer this through the broker channel…
This might apply if the distributions are physically tranferred and then lent back.
Trusts have the option to retain distributions e.g. Tranfer on paper for tax purposes however retain finds; which are listed beneficiaries accounts or unpaid distributions on the balance sheets. I might be wrong but as far as I am aware the is a difference between unpaid distributions and loans from beneficiaries ( albeit one could argue they are the same thing).
Most family trusts that trade in business need to use some profits to amortize debt, investing in stock or plant + equipment etc. Therefore almost all trusts in this position retain distributions to meet cap ex .I don’t think they need a contract for unpaid distribution as the trust deed should already have a clause for retention of distributions.
Therefore distribute on paper to the company ( as Terry mentioned) and retain the distribution. No loan contract required…
I have 2 on the go at CBA. Both approved (one approved yesterday). I think Westpac also do.
Restricted to spouce or parents. They are becoming more and more popular. Also wealthy parents can use their income to assist their kids; at the same time get the FHOG. One of the ones I approved had an applicant in full time study; the parent will make the entire repayments until the son can afford to take it over.
If parents were on title they get no gov grant…
Maybe go work in building / contruction and keep up the accounting studies.
If you understand money and can manage projects / complete your own improvements; you would be laughing.
Re the 20% loan. CBA and Westpac will both do these on a second mortgae: same price and interest as a first mortgage; albeit a deed of priorty is required. Terry is correct re you can just get them to lend you the fund. Either way works.
