The fact it is on Today Tonight means is will be a complete fabrication anyway.

As for you commnets about the people with no money being the high net worth individuals of the future…I take your point …..but try going into a BMW dealership and saying I have no money today but I might have some in the future so you should give me a new 5 series…[Read more]

People forget that Bank coustomer service levels are actually very high. Look at banking 20 years back and look at what we have now:

You can use an ATM 24/7
eftpos
online banking
24 hour approval on home loans
margin lending on shares
low mortgage margins
higher mortgage gearing (100% LTV)
redraw
LOC
offset
the list is endless

IMHO opinion…[Read more]

So this article is about banks doing what they are leagally allowed to do and if they were smarter would do a lot more quickly than they currently do.

If you are in default (typically you have not made a payment for at least 90 days, more like 180 days) what more can you expect.

Keep in mind if they are PPOR houses you have many avenues to show…[Read more]

Self insurance really only works for bigger companies because they might hav eafleet of 1000 cars and that goves them a porfolio of spread risk. For a person with 1or 2 cars 1 or 2 houses etc it doesn’t work as well.

Health insurance: if you look at the claims charts you will see that people in their 20 and 30 pay more than they claim except for…[Read more]

They use a term called ‘full economic break costs’ which roughly translates to :

If I lend you $100,000 at 9% for 5 years and after 2 years you break the loan and I can only relend the money back out at 6% then you owe me the present value (PV) of 3% on $100,000 for 3 years.

A couple of points to note:

the banks to not set the fixed rates according to what they “think” the rate will be in X years…they go off the money market rate for where they have to lock in funding for fixed rate loans and tehn add their margin. (the rates are published in the AFR everyday)

As for a stock broker telling you that rates will be…[Read more]

Centerlink do them as well !!

In the UK they are writing billions per year in RVM’s.

.

Many commercial loans include covenents where the lender can check the financil postion of the borrower every six months and if EBIT or EBITDA fall below a certain level then the loan can be called.

Keep in mind many commercial loans only have a life of 3 or 5 years anyway.

BTW I have doubled check with our in house lawyer and you cnanot call a…[Read more]

How are you all going??? Is anyone able to offer any form of proof that a bank can call a loan??? Or are you just going to go around in circles and criticise me for having the hide to question a statement??

Maybe because nobody questions the stuff on there. ie they believe every thing that is posted is true just because it is on the net.

Where did the idea that most are funded offshore come from??

Hey commercial loans are a different kettle of fish to home laonsand I did point out that UCCC loans were not invetsment loans.

I do note that nobody has been able to show a single piece of evidence that a bank can call a normal home loan just beacause the LVR moves teh wrong way.

Bring it on clowns

Quote: “Nat, the bank will not forclose a loan as long as the person/persons keep up their repayments.?

…From memory I think that is what I said upfront.

If somebody defaults then the bank has every right to step in…that is a world away from the original incorrect suggestion that the bank can call up at tany time and force a sale.

BTW I’m…[Read more]

Items like this are a matter of fact not opinion.

Tim …where do i start?

UCCC – uniform consumer credit code…no lender can move in a sell a property whilst the borrower is still fullfilling thier obligations to pay and is not in default or arrears.

For non code loans ie investment loans…what bank in thier right mind is going to wake a sleeping dog i.e. take a performing loan and sell it…[Read more]

LTV = LVR
LTV = Loan To Valuation ratio
LVR = Loan to Valuation Ratio

You guys are still way off teh mark on negative equity.

Sure it is a bad thing but if prices are going down who cares how much equity you have in the deal !!

Quote: He told us that many loans written today, have a clause that allows the lender to trigger a mortgage sale if the equity/debt ratio shifts too much.

…absolute fiction !!

Sorry to say it but your reply makes less sense than your original post.

It really doesn’t matter what LTV you kend people as long as they keep paying.

Think about it…you lease a car for $30,000 …the next day its worth $28,000 and you owe $29,999. What happens ??

Do the wheels fall off,,,do they kill your first born son??

Why are some people so caught up on the LTV???