[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

March 23, 2004 - 4:05 am

I would try BNZA, NAB or Suncorp.

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

March 23, 2004 - 4:03 am

Punter

The best two LOC’s are:

1. ANZ (Equity Manager) = 0.60% off = 6.47% (as Terry noted)
2. St George (Portfolio) = 0.70% off = 6.47%

Westpac will give you 0.60% off = 6.62%.

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

March 15, 2004 - 8:46 am

If the property is tenanted NAB may take 100% however if it is not yet tenanted then they may only use 60% (but there is some discretion).

NAB’s qualification interest rate is 2% plus the standard variable (i.e. 9.07%) which destroys borrowing capacity.

Overall, NAB is at the lower end in terms of borrowing capacity.

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

March 13, 2004 - 5:44 am

Knowingly withholding information that you know will materially affect the lenders assessment of your application is dishonest in my book.

It is commonly accepted the most lenders in Aust will not finance a WRAP transaction and similar warnings have been sent to mortgage brokers (by some lenders).

How would you feel if you rented a house to a person that owned many cats & dogs. You didn’t ask them if they have pets but it is clearly written in the lease that pets are not allowed. That person could turn around and give you the same lame excuse… “well you did ask!”.

Have some respect for the people you do business with. Lenders do not like WRAPS. Most loan documents have clauses not permitting WRAP’s!!!

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

March 12, 2004 - 4:28 am

Not that I’m aware of. Australian lenders only accept property located in Australia.

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

March 11, 2004 - 9:04 am

Sorry Alwayslearning. I don’t think you can advertise for money partners on this site.

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

March 7, 2004 - 3:25 pm

Hedge funds (the biggest sector of the market) don’t have interest rate views they just look to capture direction in the market.

Direction of the market?

Anyway, I’ll guess we’ll just agree to disagree.

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

March 7, 2004 - 2:53 am

All markets are based on expectations. Traders, institutions, etc. take positions in the market to either make money or protect (hedge) their positions. Either way, they take a view of where the market may be heading and act upon it.

It’s the same with everything. Generally, a buyer purchases because he thinks he’s getting good value and a seller sells because he thinks he’s getting good value.

Supply and demand is driven by expectations.

When the market (about 4 – 6 months ago) was talking about interest rate rises fixed rates were increasing. Now the RBA has not moved rates and the market is suggesting that there may only be one rate rise (if at all) fixed rates are falling. Is this a mere coincidence?

The suggestion that markets do not reflect expectations is extreme and goes against any technical and quantative analysis (and against any financial market theories I have studies).

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

March 6, 2004 - 1:55 pm

Yes that’s correct but the sellers in the money markets would not sell money to the banks if they thought they were going to loss. Therefore interest rates are a reflection of where the “market” thinks rates are heading.

Plus the large banks fund mortgage monies from deposits and their own “internal cost of funds” through their treasury departments. Therefore they are not always directly affected by the “market”.

I think you can use the prevailing rates as an indication of future interest rate movements.

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

March 5, 2004 - 2:38 pm

Why would you want to borrow more money when you don’t earn a income. Won’t you be too reliant on rental income? Sounds too risky to me.

Investing is about earning an acceptable return for your risk.

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

March 5, 2004 - 12:38 am

No. Max LVR with St George is now 80%. However you have to pay for mortgage insuarnce if the LVR is over 60% (which costs about 0.50%).

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

February 29, 2004 - 10:11 am

Hi Montrose

I think I am a good example. I am a mortgage broker. I try and offer advice as much as I can. I don’t advertise the fact that I am a mortgage broker because I don’t want any business from this site. (Please don’t think I’m blowing my own trumpet. I’m just providing an example)

It’s disappointing that you are so cynical that you don’t want to accept advice from people that are willing to help you without wanting anything in return.

Just because the Mortgage Hunter (and others) advertise that they are broker does not mean that they want your business.

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

February 29, 2004 - 1:18 am

See http://www.ato.gov.au/individuals/content.asp?doc=/content/31570.htm&mnu=5060&mfp=001

Essentially half of the profit is included in your taxable income and taxed at your marginal rate (as long as you’ve help the shares for 12 months).

Profit / 2 * marginal tax rate = tax payable

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

February 28, 2004 - 2:13 am

Can you explain how you think treasry bill, letters of credit, etc. will help you?

These instruments are normally used by large corporates and institutional investors. They also require capital to be invested.

Perhaps you should read a bit more about these types of investments.

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

February 28, 2004 - 2:08 am

Hi

Most lenders will not take into account your reduced expenses becuase the loan term is for 30 years and they would assume that you would not live at your parents place for the next 30 years.

The only real reduction in living expense they may take into account are:
– company car.
– salary sacrafice benefits.

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

February 28, 2004 - 2:02 am

Yes, 6.79% is the lowest that I know of.

See http://www.sapphiremortgageservices.com.au.

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

February 27, 2004 - 3:31 pm

I’m not sure I understand your question. Are you asking if lenders will accept other financial instruments as collateral?

Some commercial lender probably would.

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

February 27, 2004 - 3:25 pm

Baycorp (NZ) and Credit Advantage (Aust) merged a couple of years ago so I would think that they can do a Aust credit check.

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

February 10, 2004 - 12:47 pm

Gee… so you want a lender that will lend you the maximum and you want the lowest rates on the market. You’re easy to please… []

IMB is not too bad. Have you checked their Budget Loan? Upfront fees are high though.

That said, they will lend the most if you have “external” debt (which you do) because they take it at repayment amount and don’t gross it up.

What would you prefer:

1. Low rate but no borrowing capacity; or
2. Average rates and borrowing capacity.

Cheers

Stu

[Stuart WemyssMember@stuart-wemyssJoin Date: 2003Post Count: 598]

February 8, 2004 - 9:37 am

Correct.

Re: break costs – maybe. It depends what your rate is and what the lenders cost of fund are. We had an aritcle in our newsletter about this. See our Aug/Sept 2003 newletter at http://www.prosolution.com.au/free_newsletter/free_newsletter.php and go to the bottom of the page.

Cheers

Stu