Forum Replies Created
http://www.establishmentloan.com.au/ may lend you 105% of a property’s value (price + costs).
There are also a number of lenders that will lend 100%.
Cheers
Stu
Thanks Tasman.
The reason that fortnightly repayments ends up saving borrowers is becuase you are essentially making 2 extra repayments per year.
I didn’t actually do the numbers myself. I did a Google search and relied upon St George’s numbers.
See http://moneymanager.smh.com.au/articles/2005/03/08/1110160815144.html
The only way to save money is to repay as much as you can as often as you can. The point I was trying to get across is the Wizard loan restricts the ability to make more regular repayments.
Cheers
Stu
Let’s not be too sensitive. Its a fair question to ask if someone is licensed or not… If only more people asked Henry Kaye…
I know of Western and no one was ever having a dig at him.
What people should be looking for (in my opinion) is a good mix of personal experience and formal qualifications/license.
Cheers
Stu
Nat,
You do not need to be licensed to provide advice on property or credit products (loans). However, if you want to sell $10 of Telstra shares you need to be licensed to the eyeballs! Anyone can give advice to invest $1 million in property!
It is an absolute joke!!! Pathetic government and States!
Cheers
Stu
If you are interested in this topic look out for a article that I wrote which will appear in the next issue of API (April). There are heaps of issues to consider.
Cheers
Stu
5.87% is a very low rate. It’s 1.45% below the standard variable rate. There are some restrictions with these cheap loans so they’re not for everyone.
1. Only for purchase of owner occupier property (no refinance or investment).
2. Can only make monthly P&I repayments. This is a big downside because making fortnightly repayments can save a lot of money… around 20% to 25% of total interest. So if you make allowance for this (and add 20% onto the interest rate) it is equivalent to approximately 7%… not such a good deal anymore.
Not for everyone. But no one can deny… it is a very cheap rate on the face of it
Cheers
Stu
Yes, no more news to date. We are still waiting for the ASIC announcement.
Cheers
Stu
Read this article about borrowing capacity – http://www.prosolution.com.au/articles/unlimited.pdf
Cheers
Stu
You need to find out what the break/early repayment/exit fees are for each loan. Without this information it is impossible to make an educated decision. For example, if lender 1 has no exist fees and lender 2 has large exist fees then I would lean towards lender 1. Find out what these fees are.
Cheers
Stu
Fair enough. Brokers are not the be all and end all. However, there are some good brokers out there that can get borrowers better deals… sometimes better than what borrowers would be offerred directly. I guess it works both ways.
Cheers
Stu
Hi Dazzling
If you haven’t used a broker for over 10 years then how do you know what you are getting now is better than a broker?
The best rate (as a broker) that I have negoiated is 1.15% off the standard variable rate for the life of the loan. Are your rates better than that?
Cheers
Stu
BankWest normally charge normal application fee and ongoing fees. However, the trick with BankWest is to have a small line of credit (say $50k) and then you pay an annual fee of $300. However, this allows you to apply for unlimited mortgages without paying for any additional upfront or ongoing fees.
So, in short, the cost is $300 p.a.
Based on a loan of $750,000, the annual fee ($300) only represents 0.04% of the loan… not much compared to the interest rate!
Cheers
Stu
Well its my understanding that the mortgage insurers will not touch anyone that has not completed their probationary period. I have helped people in a probationary period where the LVR is under 80% and LMI not involved. If you need to borrow more than 80% then I would be careful.
Just make sure you purchase “suject to finance” so that if things do go wrong you can get your deposit back.
Cheers
Stu
We are traveling over old ground. How about we leave it there. Thanks.
Cheers
Stu
Happy to help if I can.
Cheers
Stu
St George, CBA and NAB do. Westpac do not.
Cheers
Stu
Thanks a lot guys. Stu – regarding my being considered a non-resident, I talked to an accountant about this and he said that I can be considered either a resident or a non-resident, it depends which way I want to play it. I have a visa that allows me to work in the UK indefinitely if I want but I was born and raised here, so according to him my resident status depends solely on where my ‘permanent residence’ is. I can make that whichever way I want. So, I can be a resident if this helps. Do you think it would?Mortgage insurers normally want people back in Aust for at least 12 months. They might look at it if you have been back here for more than 6 months.
Residency classification for tax purposes is irrelevant to the lenders.
Cheers
Stu
They should be able to give you a pre-approval that is only subject to valuation so certainly pressure them to confirm the 90% LVR before you pay anything.
To be honest, I don’t think any mortgage insurer will approve this.
No one that is classified as a non-resident can borrow more than 80%. Most of the big banks should lend 80% (e.g. CBA & NAB).
Cheers
Stu
Get in touch with:
http://www.mortgage-mart.com.au (they do lots of low docs – not sure able commercial) and/or
http://www.balmainnb.com.au/index2.phpThey should be able to assist.
Cheers
Stu
In my experince, the Big 4 banks are best for non-residents. I just did one with St George and it was painful! Try CBA or NAB.
Cheers
Stu
