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  • Profile photo of jcls79jcls79
    Member
    @jcls79
    Join Date: 2004
    Post Count: 88

    hi all

    I am about to do my first wrap deal in country Victoria (YEAH!!) and I was thought to be reasonable, if i put in the contract that “should the interest rate go beyond 10%, my interest margin will drop from 2% to 1%) so as to ease the repayment for my future owner.

    Does anybody thinks that it is a good idea? the reason I propose that is I don’t want to cash burn my wrappee, as I worked with them on their cashflow prior to entering the deal..

    Want to join financial independence before 31 years old, currently 25

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    I think it would be nicer if your margin was 1.5% or less as it is unlikely that interest rates will go beyond 10% before they pay you out (assuming less than 5 years).

    Robert Bou-Hamdan
    Mortgage Adviser
    http://www.mortgagepackaging.com.au

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    Comments made are of a general nature and should not be construed as individual advice.
    © 2004 Mortgage Packaging Pty Ltd

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