ASIC campaign to stamp out illegal access to super schemes

Tuesday 21 September 2004

The Australian Securities and Investments Commission (ASIC) is conducting a nationwide campaign against illegal early access to superannuation, working closely with the Australian Taxation Office (ATO) and the Australian Prudential Regulation Authority…[Read more]

Development lenders will normally lend 70% – 76% of end value or 80% of hard costs. Development lenders are short term funders so you will need to have “take out” finance once the development is completed and leased/operated.

NAB has a similar “policy” about investment lending. It’s nonsensical and has never actually impeded any of my clients. I…[Read more]

Dom, IMB may lend up to 75%. Its 5 year commercial rate is 8.05%. They have an application fee of 0.50% of the loan amount. You have to pay for valuation and legal fees (which is standard). See http://www.imb.com.au

Sapphire’s 5 year fixed rate is 7.70% but they only lend up to 65%. See http://www.sapphiremortgageservices.com.au/rates.asp

With regards…[Read more]

Interest only repayments are normally required during the construction/drawdown period. This is very normal. It would be nice if you could get an interest free loan but it’s not the case.

In my opinion, it was naive of you to think the loan would be interest free. I’m sure the loan documents state that loan repayments were required. Have you…[Read more]

Adelaide Bank
3 years fixed – 6.50%
Interest only – up to 10 yrs
Extra repayments – up to $20,000 p.a.
Redraw – $35 (min $3,000)
$8 per month fee
$595 application fee

Cheers

Stu

Yes, it looks like there has been some cheap money on the market. Adelaide Bank is offering 6.50% for 3 years and BankWest at 6.75% (they bought $100m of this money).

Cheers

Stu

I would suggest having each mortgage separate in a perfect world. However, consider the cost/benefit. I would not suggest this structure if it’s going to cost a lot to set up. There are some professional packages that allow you to set up unlimited new mortgages at no cost. These allow you to design a perfect structure at no cost.

Perhaps read…[Read more]

Spot on Terry.

Most analysts can’t forecast what the RBA will doing one or two months let alone 1/2, 1, 5 years!!!

That’s why I regard those BIS Shrapnel long term forecasts as having the same integrity as the “Little Jonnie Election Promises”.

Cheers

Stu

The St George Portfolio isn’t bad so long as you don’t change anything too often.

Cons
– All properties a cross-secured (i.e. one big loan with sub accounts secured by all properties).
– Break fees of $1,000 for the first 3 years.
– Fees if you add another sub-account. E.g purchasing another property would cost $100 (new sub-account) + $395…[Read more]

Be careful using low doc loans. If you declare a higher taxable income in a loan application compared to your tax returns it could come back to bite you. The ATO can check this.

Always be honest.

Cheers

Stu

If you are after financial advice I wouldn’t suggest using a broker.

Use a qualified and experienced professional.

Cheers

Stu

When I spoke to the editor about the article in July she said that the Sept issue was full already so I guess I didn’t really miss a deadline I committed to.

Kay, if I commit to doing something I will ALWAYS get it done on time. I never miss a deadline!

Cheers

Stu

Thanks Kay.

My next one is on negotiating with lenders. I think it pretty useful. I missed the deadline for the Sept issue so it will be out in Nov.

Cheers

Stu

Thanks guys.

Cheers

Stu

I made some comments about mortgage reduction people a while ago…

“There are many mortgage brokers offering mortgage reduction services and claiming they can help people repay their mortgage in half the time. The vast majority of these services are crap and they just don’t work!” say Stuart Wemyss, Chartered Accountant and director of…[Read more]

Hi Alf

Yes, I am aware of this policy.

I would argue that if they have other cross securitised non-inner city properties then this minimises their risk and this shading shouldn’t apply.

Cheers

Stu

They will lend against term deposits and real estate. That’s about it.

Cheers

Stu

NAB are not that bad. They have some strange policies but most of them are fine. Their service (in my expereince) is fantastic. They are a very good lender.

Many brokers may not want to use them becuase they are one of the only lenders that don’t pay a trail commission.

By the Alf, every so often to post a complaint about NAB but yet you still…[Read more]

Simon I think you may have misread the question.

If you have an interest only loan for $200,000 and then repay $100,000 then the repayments will be based on $100,000. Therefore, if the interest rate was 6% then the repayments would be $500 p/mth. If you redraw $50,000 and balance is up to $150,000 then repayments would increase to $750 p/mth. An…[Read more]

I think Mortgage House said they were cool with Wraps but this might have changed.

Steve’s “need finance?” section says they can help with Wraps doesn’t it? Contact them.

Cheers

Stu