Forum Replies Created
Only thing that was abolished was Deferred Establishment Fees as Jamie mentioned.
You still get charged a Settlement fee with most lenders on the way on and on the way out.
Break costs on a fixed rate loan are totally separate.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As Jamie mentioned exit fee and fixed rate break fee are two totally different things.
Dont forget in addition to the break fee they will probably charge a Settlement fee if you leave them.
So much for Swanny wanting to provide competition and make it easy for borrowers to switch lenders.
All that has happen is that many have merely said we will charge an upfront application fee instead of an exit fee that way we know we get out money.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Pfranky
Sure happy to recommend my Conveyancer as she has done 1,2 or even 202 transactions for me over the years.
Details are:
CSM Conveyancing – Leonnie Dixon
6 / 82 City Road
BEENLEIGH
Q 4207
Ph: 07 3807 2233 (office)
Fax: 07 3807 3841
Email – [email protected]
Tell her i sent you and she will probably put the phone down, no only joking she will definately look after you.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Kp
Welcome to the forum and I hope you enjoy your time with us.
Happy to refer you to an excellent Accountany based on the Northern part of the Gold Coast.
Shoot me an email and will give you his details.
As Jamie mentioned a good investment orientated Mortgage Broker can give you advice on how much you can borrow and how you can structure the loan. Wouldn't be suggesting you use cash unless there is little alternative in regards to equity.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Great in theory buying below market, reno and pull out the equity to buy again but not always possible.
Whilst Nathan uses Westpac for his deals they would be in the lower quartertile of lenders when it comes to serviceability and most
lenders and certainly both mortgage insurers will not allow equity to be extracted on a regular basis.There are some lenders that have very generous serviceability models compared to the Big 4 and some that are very investor orientated.
i think matts comment in the original post relating to the 30% rule was in relation to the rent reliance.
We havent see this applied for a while post GFC but i certainly could see it coming in again for Professional Investors.Merely plan ahead, structure your loans accordingly and as long as you can find equity if you bought the right property then financing it shouldn't be a problem.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Unlike to get too many lender go above 90% lvr but 95% is possible if you have a good track record with your lender.
Trouble is it wont just be the deposit but also the acqusition costs and the extra LMI you might have to also find.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Call me old fashioned but would anyone use $40K of their own cash savings to cover the acquisition costs when they could sensibily gear this and have the interest deductible.
I am not sure ravenhard fully understands the loan structuring concept so would strongly suggest you get a Broker to work thru the numbers with you and explain what can and cannot be deducted.
Only this way will you be able to work out the true cost of such a purchase.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Peter
Sorry been flat out so havent had as much time as i would like to visit the forum and answer posts.
As Terry mentioned wont be any Tax issues having her as Co-borrower or Guarantor as this dictated by the Title ownership and not the loan. Like the CBA many lenders are going the route that they wont allow a Guarantor to increase income and therefore insisting on the co-borrower arrangement.
Personally unless it is a must i am not sure i would be putting her in such a position.
Have you looked at alternative lending options as each lender has a varied serviceability model. CBA would have to be in the bottom quartile when it comes to serviceability.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
No you cannot claim your Super back but you can roll it over to an approved fund in the Country you are moving to.
Moving to the Blue Mountains i hate to say doesnt count.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Nothing to stop you starting your own SMSF but going to be limited to the amount of contributions you can make if your emplooyer wont allow you to roll over your existing fund or make future employer contributions into your fund.
I recently wrote an ebook on Buying in Super so drop me an email and i can send you a copy.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
ssusanh hate to say you cannot withdraw your Super and use it as deposit even under the hardship rules.
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Yours in Finance
Richard Taylor | Australia's leading private lender
So we can see lol
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hey Terry put your teeth back in that's 2 in a row very unlike you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As Terry has mentioned.
In saying this i would be starting to extract equity where possible out of the existing securities and then be looking to secure separate funding for the units etc from a new lenders irrespective of what entity you use to buy them in.
Many lenders wont touch multiple units on the same Title and if you intend to keep them long term you wouldnt want to strata them.
I still own a block of 24 units here in Brisbane on a single Title and have no intension to strata title them as the Council rates would jump overnight.Sure down the track if i decide to sell them then this is a consideration but being held in Trust you have more flexibility as to how you distribute the income and the potential capital gain.
Lenders will often tell you that they charge a higher rate or increased fees when buying in Trust but often this is merely an excuse and there are just as many lenders who dont. Half the battle of course is finding a lender who will fund a multi unit development.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Rachel
Firstly welcome to the forum and i hope you enjoy your time with us.
Without knowing the actual numbers it is difficult to comment with some authority but i must admit i would be concerned why your existing lender is wanting to charge LMI again as had they done it correctly the first time you wouldn't be up for the additional cost.
I spend most of my working week at the moment untangling loan structures for forum clients who have had them badly structured by their Banker / Broker. It all really boils down to either a lack of knowledge or laziness on the part of the Banker as there is no difference and in fact i cannot think of any positive reason for a borrower why you would want to cross a loan.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sorry hate to disagree again but failure to disclose is considered mortgage fraud.
Rather than tell them "what the want to hear" you "tell them the truth" on your application.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jac
Mez wont work as the value of the land is less than the current land loan.
Tmr initial problem is avoiding having the existing lender wanting a cash reduction given that he has breached the Terms of the current mortgage and their security is dimished.
As Michael has said there is often a way as long as the rest of the deal stacks up.
No one said it was going to be cheap but could be done with the right numbers.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Mark
Being a Naysayer and being realistic in the current climate is another matter.
Stamp Duty on a purchase for a $350K property are over $13,000. LMI is another $10,500 + S/D.
There is only 2 lenders i am aware who doesnt require of that dont require 5% genuine savings although still require to sight the 5% without being borrowed and that is another $17,500.
There is a mile of difference to the lending climate in 2012 and 2005 with Credit scoring being used by the majority of lenders and auto declined deals not re-assessed by many.
Trust me as some with a reasonable sized portfolio ($18M +) and more than a bit of experience in Vendor Financing i wish ssusanh every success however you also have to be realistic. Since the inception of NCCP anyone providing Vendor Finance needs to hold a Credit License so many of the mums and dads who did the odd one or two and have disappeared due to the ongoing compliance requirements.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I hate to say i dont think you will any chance with only $6000 deposit as the investors Stamp Duty will more than that.
Your own costs (based on the fact that you dont qualify for the FHOG) will also be more than $6K.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
If you post some further details you might find the odd investor from the forum register some interest.
How much deposit do you have and what sort of purchase price are you looking at ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
