Forum Replies Created
It is interesting to see how quick your ‘loyalty’ went out the window when you did not get what you wanted. Your story is a great example of why borrowers should not go direct for their loans and expect they can do all their business with the one lender as they grow and diversify.
When I speak of ‘churn’, it has nothing to do with borrower happiness. It is about shonky brokers moving their clients around for the sake of making more commission. Many of us in the industry are trying to change the legislation to prevent this.
The poblem with trying to prevent ‘churn’ is defning it in the first place. I consider ‘churn’ to be when a loan is refinanced and there is no benefit to the borrower. Benefit can be either a financial benefit or other benefit that the borrower may receive.
Robert Bou-Hamdan
Mortgage Adviser
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Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdHey Michael,
Just be careful before you speak or you might get you head chewed off!
Good luck with the study.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdWhat does the propery rent for? I am thinking 200-230 p.w. AT BEST!
Sale price sounds a bit over the top to me. The valuation must be old.
Why do you want to get rid of it “fast”?
Robert Bou-Hamdan
Mortgage Adviser
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Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdWhy TRY and raise the funds yourself????
You already have them. If you only owe $380,000 on a 1.75 million dollar property, you have over about a million dollars accessible to you. I am sure you will not need anywhere near this much just to subdivide. Just borrow the costs to subdivide if you think you can make the repayments until the lots starts selling (if they are in demand).
Finance for this is not hard!
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdOriginally posted by brahms:i would have thought discharge fees were an attempt to recover set up costs of the initial mortgage – increased clawbacks being in place to prevent churn?
cheers
brahms
Clawbacks usually don’t last more than 12 months. Discharge costs are usually up to 4 years or more. More lenders are implementing these to recover costs AND prevent ‘churn’. This helps prevent ‘churn’ as a borrower may not want to move when they see the cost to them for doing so.
Clawbacks are not effective as they reduce in most cases. Even if you refinance during a claw back period, you can move the loan into a new lender and not lose the trail and still be in front.
Luckily, I have not experienced a clawback yet and hopefully never will.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdOriginally posted by Sonja:BTW she was only ex by about 10 days when he died.
In this case, I would guess that she will be the sole benficiary if she is the mother of the children. 10 days is a separation, not an ex.
Robert Bou-Hamdan
Mortgage Adviser
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Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdNice and clear… Thanks David.
Robert Bou-Hamdan
Mortgage Adviser
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Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdSimon,
I don’t think that the SES would support severe storms and wind destroying property being described as “remote”. It happens a lot!
I would certainly not buy a car and not insure it as one silly mistake could force bankruptcy. The same applies to property. If I pay 500k for a property (and it was my only one) and then I don’t insure it, where do I pull the money from if it is destroyed? The income from the property would also be gone.
Insurance is a CRUCIAL pary of any solid financial plan. This includes life, health, income protection and property.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdThere are a few who calculate discharge fees on current balance. I personally try and stay away from products with discharge costs but it is getting harder as lenders are trying to prevent ‘churn’.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdYou would need to speak to others about that. May I suggest FW – Felicity… she knows wraps!
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdFrom memory, the order usually goes spouse first, children second, parents third. An ex. should not win the case as you described. The children will be the next of kin in my opinion. I think it is the trustee which is the big issue as the kids are so young.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdOriginally posted by Ravtown:Hi Robert,
I am another newbie and this talk of interest only loans has me curious, as I alway thought that they were difficult to access.
Generally speaking who is eligible for an interest only loan?
Everyone who is eligible for a loan.
Do you have to have equity in an existing property to leverage off?
Only what you need to get any loan.
Is an offset account a regular feature of an interest only loan these days?
It is readily available with many products.
Are there restrictions on property locations that are suitable. ie are IO loans not an option in truly regional areas?
NO
Anyone else with experience in this please chip in.
cheers
heather
A final note, an INTEREST ONLY loan is not a separate loan. It is the same loan most people have but intead of paying principal and interest, they only pay interest. Usual terms are 5 or 10 years but these can usually be extended.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdI think this book is very clear. It is about CONTROLLING 1 million dollars worth of property in 12 months using stringent purchasing guidelines.
Can we move on now?
Robert Bou-Hamdan
Mortgage Adviser
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Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdIf the wrap falls over, you re-wrap it. It is diferent to a mortgage.
In your first example, you re-wrap it.
In your second, you re-wrap it.
In your third, they cannot force a sale because they don’t own the property.
In the fourth, you don’t sell it. You re-wrap it. I can’t see costs being higher than market value unless you are referring to the wrap sale price.
Whether or not the wrappee gets any payment for equity depends on the initial agreement or legal action if you are a dodgy wrapper.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdWhat is fustrating is that insurance policies are forever changing. Exclusion clauses are becoming common-place. Soon, we will see insurance policies that cover everything EXCEPT damage to a property.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdDon’t dwell on lost opportunities and don’t listen to those with no idea about what you are doing.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdAll the largest National Associations have State based branches. This is an excellent idea as each branch can address State issues and all States can collectively address National issues. SA certainly needs a State based branch!
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdI am just trying to work out what the valuers are thinking. Maybe a valuer can tell us?
Robert Bou-Hamdan
Mortgage Adviser
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Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdJust one tip, if you had got an unsecured loan to reduce the principal amount, it would most likely have cost you even more. Good luck with the sale of the proprty.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdWhat Monopoly said!
I tried to get away with paying CGT with capital gains from shares by reinvesting profits a few years back. The accountant quickly corrected my error.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
