Forum Replies Created
Sebastian,
To clarify typical policy is no LMI to non-residents or non-citizens of Australia. If you are not either of these you need to apply for foreign investment review board approval and max LVR is 80%. However if you are one of the above its 95% as Richard has stated.
Cheers
MattThats crazy having to fly back to sign up…….I agree with the others – swap banks, I know for a fact ANZ does not require you be in the country to sign docs.
Cheers
MattA deposit bond is something you use in lieu of cash when paying your deposit on a property. They range in costs, depending on the term you require the bond for ie. 3 or 6 months & the amount of the deposit to be guaranteed ie. $10k or $20k.
The only time a bank can issue one of these for you is if you have a loan approval for the said property.
Dont confuse a deposit bond with a deposit guarantee – a guarantee is something you may use for a longer term ie. as a deposit for an off the plan apartment and these typically require security.
Cheers
MattAs I see it, utilising an “incomplete” property as security would not be achievable as the bank is putting itself at even more of a risk should for some reason your house under construction is not completed.
I believe the reasoning behind the bank person saying it may be wise to split the loan into joint names x 2 and taking guarantees of the 2 parties not present in each loan, rather than all 4 names in one loan is because under a 4 name loan structure if one applicant was to apply for another loan they would have the entire loan repaymnet of their existing facility included in their statement of position. Obviously that would limit their borrowing capacity.
As a guarantor this is not the same case as you do not own the debt and therefore only part of the debt/repayments would need to be included in the S.O.P. as the loans you are liable for is only say half of what it was under a 4 name structure.
It should be noted that different lenders have different thoughts on this policy, but I believe this is the main consensus. Also, just because you are a guarantor doesnt mean at the end of the day you are not ‘potentailly’ liable for the debt.Hope this helps
MattGreat news champ!
You can exit the Breakfree package anytime you want and there are no break costs…..I would suggest waiting till the year is basically almost up to get full value.
From a taxation angle you may be able to claim a portion of the $295p.a. package fee as a tax deduction as part of your loan is for investement – it could be argued that you are paying the fee to be exempt from app fees on the investment side of things, particularly as you dont have any use for the credit card. I am no tax man so obviously seek the opinion of someone qualified first.
Cheers
MattNo dramas Steve
Actually, any combined lending under the breakfree package in excess of $250k gets the .6% off the standard variable rate champ. You could even do a fixed loan for $200k (no discounts) and a supp loan for $50k and get the .6% off on the supp loan.
ALternatively ANZ do a 6.62% on a single $250k+ Moneysaver loan – but no offset capability on that particular one.
Cheers
MattStill easier to access the funds via those methods than most redraws! And there are no costs to take the cash out…….and I have seen people take much less than $500 at a time…..and even if the min withdrawal is $500…..whats to stop you from taking out $500 and then re-depositing $400 back in if you only want $100!
You’re really making things sound harder than they are…..Well then you got a winner in ING – as the money magazine will also agree!
Cheers
MattNot neccessarily!
You can have one of 2 offset accounts at the ANZ. Granted one is $10 and this account acts as your normal transaction account also or you can have a fee free option which you can still access from ANZ Atms, internet, phone and in branch with unlimited withdrawals – no fees at all!
Cheers
MattBe very scepticle about rates that seem too good to be true, becuase quite often they are and you risk losing all your hard earned! When you invest, be it debentures, term deposits, at call cash management accounts etc. ensure you check the credit rating etc. of the organisation you plan to invest with.
Typically higher returns come with higher risks – I know I would be happy with a little less return if I can be sure the cash will be there at the end of the day!
Cheers MattGo the personal loan option. Just be honest with the lender in what you intend to use the funds for and I am sure they will assist you to get you over the line. I know many people who have achieved this.
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MattGranted the above point – I was under the impression gattaga had the finance under control, it was just that he needed the saving history – hence in 3 months they could demonstrate this.
MattThe ANZ do not promote it via the website – its one of those packages you need to ask about, but rust me it is there and there is no annual fees.
Cheers
SLEIn my eyes the logical thing to do whould be sign for a 3month+ settlement.
Simple as that!
Cheers
MattYes, brokers may be able to offer many products, however they simply cannot have the capacity to keep up with all the changes that are happening with each institution and know all products inside out…….my suggestion is to refer to credible publications such as Money Magazine and Personal Investor and see who they rate as the best. Then visit a shortlist of banks/credit unions and make your own educated decision.
I have seen and work with some great brokers, but unfortunately have seen on all too many occasions too many deals cocked up by brokers.
Cheers
MattIt all comes down to how many times you plan to redraw I guess. Sit down and work out the break even point on cost of redraws vs planned offset balance and interest rate difference.
Personally I run with an offset account, but make sure the offset account doesnt carry fees also as some do and that will alter the equation also.
Cheers
MattWhy dont you try the ANZ Bank. They have a professional benefits package also and you would get .5% off the standard variable rate – thus the rate would be 6.82% for a $220k loan. Should you advance to $250k, they take .6% off.
They didnt win bank of the year for the last 6 years for nothing!
Cheers
Matt
