Forum Replies Created
- Qlds007 wrote:
Oh whilst you are there Angus.
Can you tell us is the loan mortgage insured when the lvr is less than 80% irrespective of who pays for it.
This is a critical credit question for most investors and i look forward to your reponse.
On the matter of not charging a DEF or early repayment fee if it is like any of the other First Mac products not a matter of not wanting to it is a matter of legally with effect from July 1 not being allowed to.
Cheers
Yours in Finance
Thanks Richard,
Im happy to provide basic factual information about our loans and the company to ensure that people are in a position to make informed decisions. Im not seeking to offer any advice or to suggest one product or lender over another. If that were the case, I would see that as promotion.
In terms of LVR below 80% we insure some not all loans and wen we do we pay the LMI.
Hope this is of assistance
Cheers
AngusJamie M wrote:Totally agree – I'd also question there cash-out policy (which is probably non-existent). Cheers JamieHi Jamie
Yes we do have a cash out policy/option available on our loans.
Feel free to give me a call on 13 10 90 if you would like additional information.
Rgs
AngusQlds007 wrote:Had another client ask me about it only the othre day.
Firstly it is an offset / redraw account so not a proper offset account and would not be good if you want to rent it out.
Secondly every loan is mortgage insured irrespective of the size of the loan or the lvr.
Might be ok now but why involve LMI when you dont have to.Ask youself who actually lends the money and then remember what happen a year or two with such lender.
Think to yourself how do they do it and is it a special offer for a week or two before they put the rate up.
Personally they are dime a dozen lenders like this and they come and go like the seasons.
For an investor who intends to be around for the long term i would give them a wide berth.
Cheers
Yours in Finance
Thanks Richard
The offset account is a 'propper' offset account. Its a seperate account linked to the loan and the daily balance of the account is offset 100% against the loan. So, for example, if you have a loan of $100k with $10k in the offset account, you will only pay interest on the net difference which is $90k.
One of the advantages of this account, especially for a property investor is that you can deposit additional savings, your salary etc into the account and access your funds via a linked Visa debit card which you can use via EFTPOS, BPay, ATM (we are linked to the Westpac, St George and Bank SA network), online and phone. There is no mimimum redraw and no fee for a redraw.
You can also make additional payments direct to the loan account and redraw, again no minimum and no fees.
The borrower only pays mortgage insurance when the loan is over 80%.
loans.com.au (https://www.loans.com.au) is owned by Kim Cannon who has been in the industy for approx 30 years and is also the owner of FirstMac. FirstMac is a wholesale funder to a large number of brokers and other non-bank lenders and is one of the largest non-bank lenders in Australia. Being a wholealer, they arent as well known as many of the retail brands they acttually fund.
The loan itself is linked to the RBA cash rate for the first 5 years, so while no one can predict future rate rises, one thing we offer that few do is this RBA rate link which means that the interest rate will go up or down at the same rate as movements in the whlesale cash rate.
The insterest rates we offer are not honeymoon rates, they are our standard variable rates and better still, we dont charge a DEF or exit fee so if a better offer does come along, its prety easy to change lenders.
Hope this answers some of the questions you may have and feel free to contact me on 13 10 90 if you need forther assistance.
Rgs
Angus
