Forum Replies Created
I contacted REIQ on this matter, they informed me that once you purchase at an auction, you must settle.
Also, most lenders will want your property as security as well. They want you to take the risk too. If your not willing to do that, why would they be.
Generally, how they work (home builders offering no deposit).
Up until recently, every home loan lender required a deposit from every customer, whether it be 3 or 5%. So what happens is, that these builders/homes put that 3 or 5% in for you.
So, somehow, they have got to get it back. Whether it’s higher interst rate or payments while building.
If you are considering a loan where it is 100% of the purchase price, why don’t you contact broker.
They have access to 100% home loans by St george and Pepper Home loans, there are other 100% home loans also on the market, however they are not truely 100%.With St george and Pepper you can use your FHOG to cover costs or $5000 approx or you need 2.5% geniune savings to cover costs.
Pepper , however does not do construction loans, but St george does. So with these loans you can choose any property, not just the ones offered by the builders themselves.
Some good brokers besides myself; Mortgage Hunter, TerryW, Stuart and Melanie
Send some details and we’ll see what your borrowing power is.
I’m only to happy to find the best loan for you, crunch the numbers etc..
Well, to start with, there is only a couple of lenders who accept wrap investors, so if you ask all the lenders about wrap investing, in regards to them lending you funds for it, they will generally show you the door. If they don’t then they probably, don’t diclose to LMI. But if they don’t have LMI and accept, well your right.
So in regards to your question, I’m sure you will find more lenders being friendly towards reno.
I agree with George.
If you are thinking the $35000 is buying you security and a peace of mind that you are in a supportive enviroment, well you will get this with other companies for nothing. Not only that you will receive higher commisions.
It is in the any company’s interest that you perform well, they recieve commissions from your loans.
If I were you, I would go with another company that costs nothing, you’ll learn as you go, then when you have your experience, maybe start your own. Not only that, you could then spend that $35000 on advertising, imagine your leads.
On the positive side of Mortgage Choice it is one of the largest brokerage companies, but will they generate more leads for you, to make up on the intial outlay and higher commision you would receive elsewhere?
Carlo10
Also, what they will do, is a joint venture with the developer and split profits accordingly. Not that risky when you know what’s going on and especially the developer.
Firstly, in regards to franchises.
I would advise against buying a franchise, I know a lot of companies that sell franchises and ask anywhere from $20000 – $50000. You have to ask yourself what is this paying for?
Do you receive advertising and how much?
How many leads is the company going to give you?Like Terryw said, your best approach is to apporach a company that will give you an area and traing for free. They will generally take 20% of your commission, but look at it this way, your working and learning towards something better – your own company one day. In this regard, you do need to consider a few things – there is now a lot of brokers who have broke away and started their own companies, nearly flooding the market and competing against each other. Therefore, in some cases, it is more beneifcal to be a broker within a company ie. a company that offers great lead generation. You could earn more by being with a comapny like this, than going it alone, especially by the time you would be ready to go it alone.
Also, you may want to get in as soon as possible, because they are making it harding to be a mortgage broker these days and they are trying to regulate the industry, which will make it very hard for poeple to get into the industry, than previously.
If you like, I know some companies, that you might be interested in and could forward their details to you. These companies are not associated with myself, I just know them.
If not, the next best thing would be to grab a copy of The Mortgage Professional Magazine, a lot of companies advertise in there for brokers with no experience needed. They also have a website that you can but the magazine from, if you cna’t find it anywhere else.
http://www.mortgagemagazine.com.au
In regards, to commission, well $1.5m in loan amounts is not very much, depending on your area, considering house prices are min $350k in most areas, this means you only need about 5 or 6 loans per month. If brokers, were only doing this amount they would not be very happy. Our targets are min 12 per month, with an average of 20 loans per month/ settling. Top performer last month settled 40 loans.
I have many clients that I assist setting up SMSF and the yearly audits.
Set up $495 includes everthing.
Audits from $795
Also a lot of clients like to invest their super in our 2nd mortgages, which you can earn a return from 15%- 30%p/a.
Saying 2nd mortgages are risky is stereotyping. Some are, some aren’t!
Take this into consideration:
The new 100% home loans with ST George and Pepper
How risky is this to the banks? Why are they doing this?Why do Stgoerge and many other lenders do 2nd mortgages?
Why did Liberty start off, doing 2nd mortgages and is now one of the biggest, if not the biggest, non-conforming lender in the market?
There are many other analogies, I could present, and it just comes down to: Research, research who you are investing in. Make sure there is adequate security, for example – take security over vehicles, if needed. Make sure your rate is worth the risk.
All in all, this type of investment, can be safer than the 1st mortgage, when you have added security/equity, and you receive a better rate. Also, these investments are generally only 12 month terms at IO, and with the current property markert, clients are refinancing in 6 months with investors rolling their funds over to another 2nd mortgage that suit their needs.
As per Terryw, you will need property ie PPOR, for security, (they like you to have the risk, so thye will want your PPOR as hurt money), besides that they will generally only lend 50%, some cases a little higher- up to 75%, but if you have a property, use your equity, you’ll receive a lower interest rate.
Generally, a business loan, starts at 7.35% and the lenders only like it over a term of 10-15 yrs max.
If your looking at a home laon for this, there are many lenders and many rates, for business loans, well, there are also many, however to point you in the right direction, some more infor would be needed.
IE. Do you have property/equity,
If not, have you ran a business before?
Is this business in the same industry that you are currently in? Basically, what’s your experience, in regarards, to this business.Lenders will ask a lot eg. business plan, 3 years tax returns etc..
If you have equity in any property, this will be the easiest method and best outcome for you, if not it will be a bit more of a challenge.
If you want you can email me some details.
Need some more info to fully assess.
Why was it declined and by who? Mortgage Insurance?
What is the value of your PPOR and post code?
Do you have children, if so, how many?
You may need to go for a loan amount of 80%LVR to avoid mortgage insurance.
Only to happy to assist.
There is still many options available to you.There is better oportunities, than Aussie.
Aussie only pay $300 – $800 per deal, regardless of loan amount, I hear.With most companies you would recieve an up- front payment and trail commission. This method is much higher income for the same work.
There are a few companies that will train you, some for free.
Also, you might like to try http://www.supereasy.com.au
However, they say it is complete, but don’t provide minute books and other paper work needs. But still worth a look.
There are a few better products than rams, that have lower interest rates and lower break fees.
Contact a good broker.
There are a few on this site.
There certainly is;
one is
The interest savers
http://www.interestsavers.com.auI personally haven’t used it, but you might want to try
Stuart from Prosolutions
He may be able to assist, he has a programme. He is on this site,somewhere, but haven’t seen him for a while.
It always best to see a good mortgage broker. A mortgage broker generally has numerous lenders and can find the best deal for you. Also, good to compare brokers.
Always a couple of things to ask them, which lender they recommend and why?
What commision do receive?
This will make sure the broker is not putting you through a lender on the basis of their commision.Do you charge a brokerage?
Try to use one that doesn’t.How many lenders do you have?
Try to use a broker that has more than 20.Are you accreditted with MIAA?
There are plenty of good brokers on this site. Simon AKA Mortgage Hunter would be very helpful. Melanie from Homeloanconnexion can also assist.
I am also only to happy to assist.
Obviously it’s for personal use, hence the FHOG
Billfromoz
1)$8000min is legal cost for placing caveat, lodging claim with district court, solicitors fees etc..2) It was sent to the vendors but did not want to sign. But that shouldn’t matter anyway, the contract has gone uncoditional and the 1 st buyer has now got the funds and is ready to settle, the vendors are not ready.
In regards to the FHOG it was only asked to the vendor, it was not a condition of settlement or the contract.
The client has done everything right.
