Firstly, Pretty much anything the agent tells you will be a lie so ignore it.

Secondly, What you have to do is gain the upper hand and put them under pressure. If you put an offer on the place make sure you put a drop dead time frame on the offer i.e. say that unless they come back to you within 6 hours you will not deal. Otherwise they will hold…[Read more]

For a group that claims to know so much about specialsit lending they are way way off the mark on how builders finance no deposit, no legals type loans.

Not quite right…if you did hold your credit card for 5 years without default then the original enquiry would have rolled off your baycorp report and there will be no record of you even having a credit card.

Note: also the baycorp report shows that you made and application with a finance provier but it does not show if you actually took out the…[Read more]

“studied” and “theories”…exactly waht i mean…yes traders are taking a view but not on interest rates, just where the next trade will be, they don’t care about the underlying product.

Hedge funds (the biggest sector of the market) don’t have interest rate views they just look to capture direction in the market.

BTW..my views come from 14…[Read more]

“studied” and “theories”…exactly waht i mean…yes traders are taking a view but not on interest rates, just where the next trade will be, they don’t care about the underlying product.

Hedge funds (the biggest sector of the market) don’t have interest rate views they just look to capture direction in the market.

BTW..my views come from 14…[Read more]

Stu…I see what you mean but in practice.

It is not so much ‘sellers of money” it more supply and demand and the swap market matches up the different parties. There are thousands of factors that feed into this market and the view of where interest rate are headed is only a very small part of this. (many layman books on the markets promte this…[Read more]

There really is no such thing as a credit history in australia other than a bad one ie. baycorp only register what credit you have applied for…nothing on how well you went paying it off or what a fantastic borrower you are, they do however keep a register of anything where you have defaulted.

Sorry to bust your bubble on how they set the rates. There is an interbank fixed interest rate market in Australia (called the Swap Market) that allows banks, corporates etc to fix there rates out to 10 or so years. They also use this to exchange money borrowed overseas into Aussie dollar exposure (cross currency swaps).

Fixed rate mortgages are…[Read more]

A few points to note:

Bluestone and Liberty are not private lenders, they are specialist lenders, but they source their funds from the wholesale capital markets (both here and offshore) not from private individuals.

As for only getting one go at submitting your income numbers…most brokers will tell you what income number to lodge to ensure you…[Read more]

All the banks borow offshore and have done so for many years. However they then have to hedge the repaymnst via the swap markte which negates the bulk of the advantages.

Terry …that is example is not a 95% lend from the bank’s point of view…the way they see it they lent 80% of the value.

I assumed you meant “his current income + renatls” but his future income plus rentals will cover the repayents.

Keep in mind there are only 2 LMI companies left. 3 if you count the in-house one that St George use.

Have you tried some of the solicter lenders…however. I think they would struggle with teh 75-80 LVR’s.

TeasherK6….There are many inaccuraices in your post but let me offer some advice.

If you can’t get a loan in the current lending enviorment then you have one of two problems:
1) you are speaking to the wrong broker
2) you are dead.

As for regsitering as a small business it is so they can get you a cheap lodoc loan and the loan made to you will…[Read more]

All they are doing is lending it to somebody as a mortage at a very high rate so in effect you are still exposed to the property market …albeit with somebody eles’s equity under you (maybe not much) and in a pooled portfolio.

Yes many of these debenture lock you in for a long term.

WARNING: There is some seriously incorrect information in this thread…anybody who is thinking of trying access their Superannualtion money should consult a large, well known, professional accounting company before entering into any of the sturctures mentioned here. As for setting up a unit trust…the Tax office stopped that about 3 years back.…[Read more]

A few points on the topic of US loans and fixed rate loans:

The US market can offer 30 year fixed rate loans as their wholesale capital markets take a different approach to funding mortgage assets and assume the risk that the borrower may refinace out of the loan before the 25 years are up…note: there is no penalty costs for early exit in the…[Read more]

Erika.. LMI will be payable on your loan, I can only assume that the CBA has chosen ot pick up the tab for you.

The Reserve Bank makes it very difficult of banks to lend more than 80% without LMI by imposing a higher capital charge on the banks balace sheet. The non bank lenders chose to use LMI on every loan (but only charge the borrower for…[Read more]