A little help needed.
We recently moved to Australia from the UK and purchased our PPOR in sunny Brisbane in April ’04. I was just thinking about purchasing our first Australian IP and went to speak to Homeside (our friendly lender).
We put in 20% deposit PPOR and have spent a fair bit of money improving it (so much that we don’t now have a full deposit for an IP). Lovely Homeside Lending kindly informed me that I would have to wait 1 year to access any equity.
I wasn’t that happy about this. I had also explained to our broker that we may want to access some of the equity we create (or at leat some of the money we have spent on improvements) fairly quickly.
I’m pretty sure there is an exit penalty on our loan. Any suggestions as to what to do? I don’t know if it is worth re-mortgaging if we have to pay re-mortgaging costs.
Is it normal to have to wait a year before revaluing?
Adam
One yar is a long time. Why don’t you write a letter, asking for the payout figure and exit fees and say it is because you have decide to move banks as they won’t give you an increase. I bet they quickly change their minds!
It is better in writing as it can’t get brushed aside by some nobody like on the phone.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Adam,
I agree with Terry,
get something in writing from the other banks, then show it to your bank and not only will they change their mind, but I also bet that they’ll give you one of the best deals on the market.
kind regards,
George.I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
why not commission your own val and demonstrate the appreciation – sort of force their hand so to speak.
cheers
Brendan Heagney
Mortgage Broker
07 3240 4815If you don’t ask, the answer is no!!
I agree with everyone else, finance is now a commodity, the ball is in our court yet too many dont realise this…YET!
Good Luck, G7
Get a new broker! My broker has financed over 60 properties for me and where we do improvements prior to settlement we even get 80% of the new value at settlement (this one year thing is a joke, how are you supposed to move forward as na investor)! They are all property investor themselves and do several different strategies! As far as I could find they are also the only ones left that do fully dislosed (in writting) wrap finance. So there are still good ones out there…
Blanyi
Originally posted by Fablan:Get a new broker! My broker has financed over 60 properties for me…. As far as I could find they are also the only ones left that do fully dislosed (in writting) wrap finance. So there are still good ones out there…
BlanyiHi Blanyi
I’m just about to start out as a wrapper. Could you let me know, either here or by PM, contact details for your mortgage broker, and/or which banks offer fully disclosed wrap finance?
Cheers
Greg FHi Fablan, can you expand on who does fully disclosed finance for wraps ?
Do you mean homeside?Agree with earlier sentiments. But query the broker as well. If as you say, you were intending to tap the equity and the broker was aware of this, then it sounds like he has put you into the wrong product.
I have used homeside (last year). We got a no frills P&I homeloan ( no penalties, etc) but wanted to demolish and develop.
Their policy was that they don’t do construction finance, but they will for existing customers.
Was a bit messy, but we completed the project OK,I would agree with earlier suggestions to put something to them in writing. I found they were reasonable to deal with once you got to the right person.
Give it a go before you refinance…..it will be cheaper.
But bear in mind that another finance provider would only be too happy to take over the loan and would more than likely make it attractive for you to roll over.
Good Luck !!KP
Thank you all for your help.
I’ll commission a valuation and write to them to get them moving. I’ll let you know how it goes.
Adam
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