All Topics / Creative Investing / Wraps and major banks

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  • Profile photo of alwayscuriousalwayscurious
    Participant
    @alwayscurious
    Join Date: 2004
    Post Count: 80
    September 27, 2004 - 11:11 pm

    I’ve been in discussions with a mortgage broker.
    He has advised me that major banks
    ANZ, Commonwealth to mention two are beginning to instruct staff at branches, lenders etc to stay away from Wraps.

    Also I know that some insurance companies are also considering this and one in particular I know about says NO to insuring Homes under Wrap strategies.

    Why? They are concerned about fallout for themselves, if Wrappers go broke.

    Comments anyone?

    Profile photo of FFCommFFComm
    Member
    @ffcomm
    Join Date: 2004
    Post Count: 627
    September 28, 2004 - 1:31 am

    Mainly they are concerned about the publicity. For example they do not want to be seen as turfing people out of their houses because the mortgage hasn’t been paid by the wrapper when the wrappe thought they would one day own the house (ACA and TodayTonight would make such lovely programs about it).

    I was told that this decission was made by the Public Relations departments at those banks.

    Rgds.
    Lucifer_au

    Profile photo of kpkp
    Member
    @kp
    Join Date: 2004
    Post Count: 509
    October 2, 2004 - 9:51 pm

    If you are interested in wraps, then find a wrap savvy broker. same for the accountant and solicitor. They are out there…you just need to look.
    There are four major banks that happily finance lending for wraps.
    Try Bank of Queensland, Bank of Adelaide, Homeside (owned by National Bank) and Macquarie Bank.
    Also there are insurance companies that will insure vendor financed properties.

    Vendor financing has been around as long as has colony Australia…its not new and there is nothing sinister about it.
    Its also just one of many alternative strategies that can be used to build a real estate portfolio, if you can get your mindset away from just “buy and holds” and negative gearing.

    Profile photo of pelicanpelican
    Member
    @pelican
    Join Date: 2003
    Post Count: 454
    October 3, 2004 - 1:55 am

    ANZ & CBA will do wrap loans, but they don’t encourage it, or make it easy to get a loan….

    alwayscurious – suggest if the broker can’t help you… find another broker, or, talk to the banks directly……

    we have had nothing but trouble with the brokers we dealt with, and, ended up talking directly to several banks, who, all, lend $$$ to us, fully dislosed as a wrap loan….. AND ARE HAPPY with it….

    The difference ??? we provide them with a LOT of information about us, and what we do..

    it’s also about how you approach a bank…. something which some brokers obviously don’t know how to do……

    For the record, I have never dealt with any of the brokers who post here, and, am sure would be more than able to help you out, and, they understand the concepts…..

    Cheers

    You may know the cost of everything…. but what about the value ????

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    October 5, 2004 - 1:19 am

    ANZ issued a bulletin last year to all brokers saying that they would be barred if they did a loan for someone intending to wrap! In their bulletin they seemed to confuse wrapping and lease options, suggesting they didn’t really understand the two.

    But as Pelican said, it seems if you approach banks directly, sometimes the local branch manager will be able to do loans for wraps. It is a strange situation.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of alwayscuriousalwayscurious
    Participant
    @alwayscurious
    Join Date: 2004
    Post Count: 80
    October 5, 2004 - 6:14 am

    Terryw – I guess that’s why my broker jumped all over my innocent question and beat the hell out of it real quick. Like the rhino’s on “gods must be crazy” putting out the fire.

    Anyway it was an innocent question – my intent is not to wrap at the moment, but we’ll see.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    October 5, 2004 - 12:49 pm

    KP

    Find it hard to beleive that Adelaide / Macquarie wil finance wraps as both full ymortgage insure there loans and no MI Company will accept a wrap.

    NAB have done over 140 deals for me although must admit they are holding rather a large amount of security and the deals are done at HQ now.

    And your take on the fact it is normal financing a wrapped property is slightly niave just ask Terry or Simon or one of the other finance brokers on the site.

    Cheers Richard
    richard at fhog.com.au
    http://www.fhog.com.au

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Australia's leading private lender

    Profile photo of brahmsbrahms
    Participant
    @brahms
    Join Date: 2004
    Post Count: 485
    October 6, 2004 - 12:21 pm

    adelaide fully MI’d?

    r u sure?

    cheers

    Brendan Heagney
    Mortgage Broker
    07 3240 4815

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