Forum Replies Created
Yep, there are others:
http://www.peachhomeloans.com.au
http://www.rebatehomeloans.com.auLike everything in life, you get what you pay for.
Cheers
Stu
Yes, there are many lenders that do this. Westpac is just the most recent lender to offer this (policy changed last week). 97% LVR up to a maximum loan amount of $500,000.
Cheers
Stu
Most lenders will lend on valuation where the Contract date is more than 12 months old. Therefore, you should be able to borrow 90% of $330k.
Cheers
Stu
CBA may do 0.70% off if lending is over $750,000.
They match CBA in the home loan stakes but Westpac’s rates are higher for investment and LOC.
Cheers
Stu
Most large lenders (except NAB) will lend 80% for inner-city so that’s not a real reason to recomend a small lender. Broker needs to justify the cost. Is it the cheapest loan on the market?
What out for exit fees.
Cheers
Stu
I have just finished an article on this for API. I have sent you an email.
Cheers
Stu
Here is an article that was in the AFR a couple of months ago.
http://www.prosolution.com.au/articles/banks.jpg
Cheers
Stu
It is the perceived hassle and fear of things going wrong. Almost – better the devil you know.
There have been heaps of studies about this. They all confirm that the majority of people are not happy with their provider but they just won’t change. People are very sticky to their banks. There’s is nothing you can do about it really.
Cheers
Stu
Just as a side note – anyone that wants to refinance to 95% and borrow 95% of the new property who have to be a strong deal. That is, serviceability and employment history would need to be strong.
Mortgage insurance can be costly but if it helps you acheive your goals then its probably worth it.
Cheers
Stu
Newsagents, Aussie Post… I’m not sure if I would trust their referral… how much credibility does it have?
What do these people think borrowers do? Do they think: “Hummm, I need a loan but I don’t know who to trust or where to get the best advice? Hang on… what about the newsagent down the street. He knows how to sell newspapers so he must know a lot about finance and how to pick the good from the bad. I’ll ask Joe”.
Why not ask the newspaper delivery boy…….
I don’t think so! That might have worked in the 1950’s when people had a friendships with the “local businessmen”.
It’s 2004!
But good luck to them all the same. I wish them the best success. Intuitively I don’t think it will work but good luck.
Cheers
Stu
Stuart, if you included a clause in the contract stating that DFM’s dad would recieve say 10% of the profit upon sale of the property, would this constitute having financial interest or does it have to be tied through risk. ie he can also lose if the property does not make money??I don’t think that would be enough. I would think the bank would want him on the title.
Cheers
Stu
CBA is the only lender that I know of that will take your Dad’s earnings. It’s called “Family Equity Home Loan”.
St George has a similar product but it cannot be used for serviceability support.
They cannot normally take income for third parties unless they are on the title of the property. The reason is because the third party has “no financial interest” in being on the loan. I.e. why act as applicant if you have no ownership. The bank needs to make sure all parties have a financial interest or they could be taken to Court.
Speak to CBA.
Cheers
Stu
What is on my credit file?
Information about you and your credit history including:Personal details such as: name: residential address: date of birth: drivers licence number:
Credit applications and enquiries you have made during the past 5 years
Records of some current credit accounts
Overdue Accounts (Defaults) which may have been listed against your name
Bankruptcy information,
Judgments
Public record information such as Directorships and Proprietorships
Judgements are recorded for 5 years.
It may impact your ability to get finance.
Cheers
Stu
1. Mortgage insurers are very rigid – they are unlikely to change their policy.
2. You need a low doc that doesn’t mortgage insure. If Bluestone will do it at 10% then that sounds reasonable (for this situation of course).
3. UK is unlikely to do it as security is outside UK. Similarly Aust lenders won’t lend against property in UK.
Cheers
Stu
401K is the term used for compulsory super fund contributions (it’s your super monies).
Using super to invest in property is reasonable so long as there aren’t any exit taxes. I guess you have to weigh up relative risks and returns.
Cheers
Stu
Hi Gatby
I’m not sure what you are saying.
I must say that I did not intend on having a go at Steven (or anyone on the forum). My point was to say that if lenders are not acting ethically then call it as you see it. If we make some noise about it and it helps one or two people then isn’t it worth it?
If my opinion, staying quiet about something you see that you disagree with (and that could harm people) is not the best way forward. Advertising the practices of unethical business does not help them whatsoever.
I feel passionately about ethical behaviour and it really annoys me when lenders (or any business for that matter) don’t act ethically.
That was my only point. I hope on one took me the wrong way.
Cheers
Stu
Yes, if the money is used for income producing purposes (i.e. purchase investments) it is deductible.
Probably no real need for a new account as long as you can keep an audit trail of where the money has gone and for what purposes (just in case the ATO audits you).
Cheers
Stu
Hang on Steven… you are protecting a lender (by not mentioning their name) even when you disagree with their advertising strategy.
If the lenders aren’t behaving as they should then call it as you see it. I will. Email me the name of the lender and I’ll post it.
Is the lender Tonto?
They are offering the rate on a LOC so they don’t have to disclose the Comparison Rate.
They are preying on ill informed, less educated borrower. That is the lowest form of advertising. It really pisses me off.
Here is another one…
RAMS is selling lies!
I refer to their website – http://www.rams.com.au/NextgenWeb/NGStandard/NGBlobRender.asp?blobid=744539103
They say an offset will save $200,000. It is absolute crap and ASIC warned Westpac about this in late 2002.
The media has a go at mortgage brokers but some lenders act very poorly.
Cheers
Stu
I have a couple of comments:
1. If you repay you home loan with a LOC it will not be deductible. It comes down to the purchase for which you use the monies. That is, the purpose was to repay non-deductible debt. Therefore, the new LOC debt is also non-deductible.
2. You cannot claim interest that is charged on unpaid interest. This has been covered in great detail. Do a Google search on the Hart’s Case. You’ll find heaps of info.
Cheers
Stu
All people on the title must be applicants to the loan and vice versa. The banks have become strict about this (due to code of banking practice).
They must ensure all applicants have a financial benefit to being party to the loan. Why should someone act as an applicant (and be jointly and severally liable for the debt) and not have a financial interest in the property. In these circumstances the applicant has no financial benefit and the banks won’t touch it. If things went bad the Court would say the bank should have never done the loan because it was not in the best interests of the customer (this has happened).
One way around this is to go tenants-in-common and assign ownership of 1% to one party and 99% to the other.
Good luck.
Cheers
Stu
