Forum Replies Created
Terry you are correct as we all now that the slightest hiccup means LMI delcine the deal as they dont need an excuse
We have been piloting both the SMSF product & No deposit for investors for the last 3 months and certainly picking up momentum.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Ian, happy to email you the product specs if you want to PM your address.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes product was launched in June after Cooper Grace Ward signed off on the product and to date we have settled about 30 deals.
At the moment we are getting a deal a day in from our Broker network.
The product is a SMSF Rent to Buy.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Chris, As a Non Resident you wont get ANY UK lender to provide finance on an investment property.
I have a property in the UK and a UK Bank Account having been born and bred there and even i can’t get finance.
You thought it was hard to get Finance in Australia as a Non Resident well the UK is even harder.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Matt
The facility is not an SMSF loan and therefore does not fall under the LBRA rules.
It is done by way of a direct lease agreement with the SMSF and therefore has greater flexibility as well as considerable Tax advantages for the SMSF in the long term.
We have spent a considerable amount of money with Cooper Grace Ward ensuring the product is both ATO & SISA compliant and the launch has been overwhelming. To date, we have settled around 22 applications with another dozen or so in the pipeline.
Recently changes in VIC legislation concerning such arrangements have temporarily restricted Victoria but NSW, QLD, ACT & WA we are assessing deals daily.
Hope this helps.
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Yours in Finance
Richard Taylor | Australia's leading private lender
80% or even 85% with 1 lender available however interest rates certainly have not come down too much.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Are you PAYG or Self Employed ?
If self employed and have your last 6 months Bank Statements then depending on what industry you are in there are a couple of lenders who may look at but won’t be cheap.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Brizza
Yes certainly is and how most investors go about it.
Trick is however to avoid cross collateralising your loans.
Normally you would draw upto 80% of the value of the first up and use this as deposit for number 2 but just running your numbers you are going to be well over 90% lvr inclusive of stamp duty and that is likely in the current climate without paying a premium on the rate and LMI.
Might have to go to between 85-90% on IP 1 and try and reduce the Lvr on IP 2 thus reducing the LMI.
Probably of matter of your broker working backwards and see what you need to come up with and then what is available.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Due to popular demand we are launching our in house SMSF loan product with no liquidity and no minimum fund balance.
It is a lodoc loan so even if you are self employed and the lvr and property asset is right you will be considered.
Even if a new Labour Govt carry out their threats and withdrawn LBRA’s the product will still strive.
Just waiting on legal opinion post an ATO PR to release it to the market but certainly if initial inquiry is anything to go by there will be no shortage of takers.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Sure Debshe will back on shortly to tell us they have now helped her pay off her home loan in full and she doesn’t pay any tax at all due to their teachings even in insolvency.
Maybe they were busy saving everyone else Tax they forgot about paying their own to the ATO.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Unless you are existing accreditated introducer Macquarie isn’t taking on any new SMSF’s now let alone June.
Still several other SMSF lenders and some interesting post LBRS products in the pipeline.
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Richard Taylor | Australia's leading private lender
Hi Craig
We have our own white label SMSF product which is a leader in the SMSF market.
Certainly an area we see lots of borrowers come unstuck.
Drop me a line if you would like me to get one of credit officers to email you some product specs.
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Richard Taylor | Australia's leading private lender
Big difference between an Expat and a Non Resident.
As an Expat you can purchase a second hand property so have the opportunity of purchasing below market value like the rest of us. If you are looking at flipping the property then certainly doable but need to consider the Stamp duty implications and other associated costs.
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Yours on Finance
Richard Taylor | Australia's leading private lender
Hi Dave
Doesn’t surprise me we see it all the time with the big 4.
Would need more information to be able to advise you further but you are likely to be limited to circa 75% lvr depending on the size etc.
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Yours in Finance
Richard Taylor | Australia's leading private lender
If the lender is based overseas not covered by NCCP.
This is why we and other lenders have a separate lending entity in Shanghai doing Lodoc Non Resident Loans in Australia.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Terry, under NCCP a loan under 62 days in term is not classified as a coded loan irrespective of the purpose.
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Richard Taylor | Australia's leading private lender
Yes it is illegal to provide credit to anyone (To an individual for personal purposes) without holding an Australian Credit License or being a Credit Representive of an ACL Holder)
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Yours in Finance
Richard Taylor | Australia's leading private lender
Breach of NCCP if the loan is for personal purposes.
Heavy fines for doing so without an ACL.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Ben
When you consider that the compliance costs of a Retail Mortgage Fund are well over a $1M per annum I don’t think the rate we offer our investors is too low at all.
Whilst you don’t need a Credit License to do a Non-Coded loan going forward you may well need to register with APRA. We were forced to register with them last year and of course that it itself does not come cheap.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes although only under certain restrictions within NCCP.
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Yours in Finance
Richard Taylor | Australia's leading private lender
