Forum Replies Created
Hi Godiver
I would also seek advice from a tax professional about transferring any assets to a spouse solely for a tax benefit; I'm pretty sure that you may be caught under the anti-avoidance rules of the ATO.
Tim McGrath, Tick Mortgage Solutions
[email protected]
Ph (03) 9877-7077ING can be a little anal at times. However on borrowings of $750k, the potential LMI savings for the customer might be too significant to ignore.
Tim could use his Offset account cash for a deposit (negotiate with real estate agent for <10% deposit), provide a Contract of Sale to ING and all would be good.
Tim McGrath
Tick Mortgage Solutions
[email protected] | (03) 9877-7077Hi P & J
I have no idea which way rates are headed. To me, you are asking the wrong question.
I really like Michael's comment about "beating the market". The best way to look at a fixed rate is as an insurance against rising rates. People with a tight budget are more suited to a fixed rate because they cannot afford rate rises. On the other hand, people with large disposable incomes are better suited to variable loans because they allow you to make unlimited extra repayments, which is what saves you a lot of interest.
In my opinion a person with a large disposable income and the ability to make additional repayments is better being on a variable rate than a fixed rate even if the fixed rate is significantly lower because the interest savings of additional repayments on a loan – more often than not – outweigh the savings of a lower rate.
Not many Banks can do better than 1% off SVR. My suggestion is don't spending too much time chasing every last BPS Pay as much as you can off a low rate rate loan as often as you can.
Good luck
Tim McGrath
Tick Mortgage Solutions – Blackburn North
ph (03) 9877-4698 | [email protected]
Hi Tim
Just a bit more info for you…
Let’s say you buy an IP for $400,000.00 and your Gov. legal and Bank costs total $20k. I would seriously consider leaving SGB for a low cost LMI provider (as per Richard's suggestion) and almost certainly a better rate with lower fees.
Approx numbers as follows:
Purchase price $400k +Costs $20k* + Payout SGB $340k = Loan required $760k
*These are an estimate only.
Consider refinancing to ING or other low cost LMI product (subject to eligibility) and borrow 85% LVR against each ppty with the following structure Loan 1 Home Loan $340,000.00. Convert to Interest-only. PPOR as security. Then
deposit your Offset money into Offset Acc.
Loan 2 IP Loan $85,000.00 Interest only Inv. Loan (using PPOR as security)Loan 3 Investment $340,000.00 Interest-only with preferred lender (using Inv ppty
as security)This keeps all your loans uncrossed and easy for your accountant to reconcile.
Make sure the fees are around $20k. If they are more, you may need to contribute some cash.
St George is lagging a little on Interest rates for higher amounts so make sure they do you a deal if you stay with them. Anything around 6.60% – 6.70% variable (after the latest rate reduction) is about right.
Good luck!
Tim McGrath
Tick Mortgage Solutions
[email protected]Your initial offer should detail your conditions (settlement date, deposit amount, B & P, finance etc…). The other clauses involving longer settlements etc… is your call but it might unsettle the vendor and compromise/confuse your offer.
Just make sure your Conveyancer/Bank/Broker can settle by your chosen date and go for it!
Good luck
Tim McGrath, Tick Mortgage Solutions
Blackburn North
(03) 9877-7077 | [email protected]Hi Grantos
A 30 day settlement should be reasonably comfortable at this time of year. I am assuming the S32 is prepared. Speak to your conveyancer and make sure they are OK with proposed settlement date.
The critical issues are the valuation (especially if ppty is not vacant), the FHOG (if the funds are required to complete purchase) and the Bank Manager/Mortgage Broker's organisational skills, experience and can-do approach.
Although I don't encourage the practice, I am still happy for my clients to sign 30 day settlements if it is critical to landing the purchase and if it's OK with each conveyancer.
Tim McGrath, Tick Mortgage Solutions
Blackburn North
(03) 9877-7077 | [email protected]
