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Mortgageman
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@mortgageman
Join Date: 2004
Post Count: 164
August 24, 2007 - 4:38 am
Hi Richard,
Sorry I hadn't read your earlier post. It is a bit of a shame as the no doc was a really good product, but the rates are now getting a bit unworkable.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
[email protected]
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
August 10, 2007 - 1:01 am
Moosehead wrote:
Hi Richard… couple questions from your posts –
You say most loans in Australia aren't securitised – this surprises me as I would have imagined a lot of the debt would be in the housing market and secured against property? Similarly business debt would be secured against assests? Or do you mean that when the loans are aggregated and sold off, the seller provides no security?
And when you say St George securitises against 30% of its loan book… what is the security?
Apologies if these are stupid questions… I was oblivious to the workings of the second-hand credit/debt market before this whole sub-prime scandal
Regards
Moose
Hi Moosehead,
I should add that when loans are bundled and sold off they are securitised for investors through insurance. So while the big banks lend off their balance sheets for lower LVR loans, nearly every loan written through smaller lenders (and some quite large ones like Macquarie) are mortgage insured.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
August 8, 2007 - 1:58 am
Hi Chewboonhoe,
As Wade says, you need to get some legal advice with this matter. Queensland has some funny laws with purchase contracts, but if you have an unconditional contract I would have thought that was it. While financing the property with one month shouldn't be a problem, I read your mentioning of one month to mean that the title on the land would not be registered within this time frame and it can indeed take quite a while to get a title registered. I dealt with a similar situation in Queensland recently and we had to get the application re-approved because the title didn't register for over 3 months after the expected settlement date so the original approval had expired. I suggest you have a property lawyer comb over the contract and see if the developer is within his rights.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
http://www.perryfinance.com
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
July 31, 2007 - 7:16 am
I have to concur with Richard here. Although we are both brokers so the charge of bias is obviously hard to refute, I've got to say the sweeping generalisation Hutch has made based on his own personal experience is very unfair. Having said that, while RAMS aren't a particularly good lender for turnaround times, six weeks until verbal approval (if all of the documentation has been submitted) and two weeks for documentation is very very unusual and poor performance from your broker may be involved. It is just as likely, however, that RAMS have dropped the ball. As a general rule we don't deal with RAMS because of their service levels as well as the lack of flexibility and high break costs involved with their loans. Also, your mention of verbal approval concerns me. Have you got anything in writing?
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
http://www.perryfinance.com
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
July 29, 2007 - 11:32 pm
Richard,
This is the case with ANZ but not with NAB their rates are set regardless of P&I or IO.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
July 26, 2007 - 11:19 pm
Hi JSawtell,
If between $500k and $1m it is 2.68%.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
[email protected]
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
July 26, 2007 - 12:46 am
Hi Hannah,
Why don't you just add an extra variable facility on top of your fixed facility against your existing property. This shouldn't be a problem at all and would save you breaking your fixed loan. Under almost no circumstances should you break your fixed rate under the current environment as another rate rise soon looks almost inevitable. I hope this helps.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
http://www.perryfinance.com
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
July 25, 2007 - 12:48 am
Hi Post Enterprises,
Try ANZ, I know they have offices in Vietnam.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
http://www.perryfinance.com
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
July 22, 2007 - 11:38 pm
Hi bjb007,
Is the person self employed? If they are PAYG then a couple of payslips would usually suffice. If not, as long as the drafts are accountant prepared then they should be ok, particularly if you are putting in 20% deposit as mentioned. You have plenty of options if you do not want to show financials. I suggest you speak to a good broker about your situation.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
http://www.perryfinance.com
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
July 19, 2007 - 5:31 am
Arranging an overdraft of $15,000 wouldn't be a problem, which could then be increased to $30,000 after 3-4 months. This could be one solution for you, but you may need to do the primary loan as a development loan (rather than residential construction) if you can't demonstrate the full funds to complete up front. Otherwise as you indicated in the previous post you may be able to get a development loan against the end value of the project rather than the costs and this may be enough to cover 100% of the construction costs, however you would need to factor in higher costs for this type of facility.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
http://www.perryfinance.com
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
July 19, 2007 - 5:13 am
I see, but unfortunately there is no way to get around guaranteeing a loan for a property you own short of relinquishing ownership or at least total control of the trust to your partner.
For low docs, the interest rate will depend on a few factors, including how long you've held an ABN. If you don't currently hold an ABN you would be looking in the high 7's, if you've had your ABN for two years you could get as low as 7.29. Trust structure is ok.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
http://www.perryfinance.com
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
July 19, 2007 - 4:46 am
Hi t803815,
Do you have any equity in other property? If so, you could possibly draw on this. Also, what is the shortfall for the 20% of construction costs? If it is not too much, a good option might be to take out an unsecured overdraft for the project. If the shortfall is signficant and you are able to get a loan for the construction costs, this might be the best option as you need to take into consideration that raising money from an investor will involve giving up equity and will therefore probably cost a lot more than paying LMI.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 962 2044
http://www.perryfinance.com
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
July 18, 2007 - 6:40 am
Hi Mike,
If you are both on the title and both guarantor's then servicing for both of you can be used. Are you sure that you can't service taking both your's and your friend's situations into account? Why is it that you don't want to be a guarantor for the loan? Also, why is it you are wanting to avoid low doc's? If you have at least a 20% deposit you would be able to get a low doc at a pretty good pricing and this may be the solution to your problem.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
July 13, 2007 - 4:48 am
Hi Brizza,
How long has this "she" been working in her current job? If she is PAYG and has been working in her job for a decent amount of time she could get a loan, but she isn't going to be able to borrow much with no deposit and a car loan. If her parents were open to it, a family equity style loan with a parents guarantee may be one solution.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
http://www.perryfinance.com
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
July 13, 2007 - 4:20 am
Blue Heeler,
My earlier point related to the situation where you had a 20% deposit. Once again, this is all a moot point because the product is not available for investment, but nonetheless you suggested taking the equity mortgage product, putting the 20% deposit into an offset account so you are paying interest on 60% of your loan. Lets say the property grows by 10% pa, therefore you are giving away 4% pa on a loan for 20% of the property, effectively 20% interest. You may be not using the 20% in the offset account, but its tied up nonetheless. However way you want to spin it, its a 20/80 loan, not a 60/40 and you are being charged 40% of the capital growth. Not a good deal in my book.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
http://www.perryfinance.com

Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
July 9, 2007 - 6:13 am
Blue Heeler,
No offence, but putting aside the fact that the product is not available for investors, it would be bordering on insane to take an equity share loan when you have a 20% deposit. You have to give away a large percentage of the capital growth which could well equate to an astronomical amount, particularly if you sell after holding the property for a long period of time. I'm not big on the product in any situation, but it is strictly for those who can't afford the deposit for a house and would not be willing or able to wear the large LMI fees on other 100% loan products.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
June 27, 2007 - 5:31 am
Hi Scruff,
You need to get yourself a good accountant.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
email: [email protected]
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
June 26, 2007 - 4:21 am
Non recourse loans are available on freehold properties through the commercial arms of most of the majors at 65% max. These loans are typically used for syndicates or unit trusts with a number of unit holders. However, the issue is generally the servicing as for non-recourse loans, the rental income is the only income that can be taken into consideration. Therefore you need a strong yield on a commercial property to borrow 65%. You will generally also need a strong borrower/s. No lender as far as I know will lend non-recourse on a business only. It would be crazy to do so.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
email: [email protected]
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
June 12, 2007 - 4:53 am
Hi Supertedd,
As Wayne says, you need to make sure the facility you are in does not incur high deferred establishment fees. It is also preferable that you aren't paying LMI or, if you are borrowing over 80% that the LMI you pay is as low as possible. You should speak to your broker about what you're trying to do and see if they can come up with appropriate products. They are certainly around.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
June 4, 2007 - 1:12 am
Hi BJ,
Does your PPOR have an offset account? If so, you should be paying everything you can into the offset account or straight into the loan so that you're PPOR repayments are as low as possible. As Duckster said, the key is paying down the PPOR debt as quickly as possible as it is not tax deductible.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000