I have a question about finance. I currently have a loan for an IP and my own home with a bank. Im in the market for another IP. I have found it difficult to change the option’s of my loan ie from Principal & Interest to Interest only. I also have concerns about cross collateralisation. Would love some advice as to whether I should stay with a bank or look at non bank leaders.
I guess it all depends on what you are after from your lender.
Whether you want bells and whistles or whether you just want a cheap rate and no other product or service.
Don’t forget if your Bank arent playing ball there are plenty of other Banks keen for your business with plent of flexibility and a wide array of products.
Many of the Professional type plans can save you both fees and interest rate and you get all of the other services a typical bank can offer i.e offset a/c / credit card / ete etc.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Hi Andrew,
Shop around for a better product that suit your needs. Talk to a mortgage broker near to your suburb or neighbourhood. There are also a few experienced ones in this forum.
Good luck.
Cheers,
hermanHi Andrew,
Need more info to suggest the available options and correct structure etc,
If your lender is playing hard ball then it may be time to move on,
However in certain and sometimes rare situations it can be more cost effective to negotiate better terms with the current lender rather than refinance to another credit provider. Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
hi andrew west
I have yet to find a lender that is the same you need to talk to lots and then decide which to run with.there rates, setup costs and on going cost are different so have fun.
try not to cross colat if posible and look at all costs.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]Watch out for exit fees on the non bank loans.
Terryw
Discover Home Loans
Parramatta
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
And in some cases LMI irrespective of the LVR.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Thank you all for your comments and thoughts so far. Im about to show my lack of knowledge but here goes. Can you guys help my with a few questions.
1) How do I get around cross collateralisation?2) Whats an all monies clause (i have one in my loan contract)
3) My IP is unencumbered. Im not sure what this means in terms of borrowing more money.
Lastly is there anyone out there that can point me in the direction of an interest only loan where I have access to extra payments I make.
Thanks
Andrew
1) How do I get around cross collateralisation?
A – Draw down from one property and use this as deposit for the next. Even if use the same lender it does not matter but maks sure they loans are Not “X” ed.
2) Whats an all monies clause (i have one in my loan contract)
A – ALL MONIES CLAUSE
These have the same effect as the Title of Goods clause, but also retain title in goods that has been supplied under invoices that have been paid. Suppliers will be able to collect any of their goods if there is any current debt, regardless of whether the debts relates to the good collected. The clause provides that title to any goods supplied does not pass until all of the indebtedness has been paid.These clauses usually are unregistered charges and have some difficulty being enforced against insolvency practitioners under the Corporations Act. Suppliers also have a problem when the customer reduces their indebtedness to nil at any time. If at any time the customer has paid all outstanding bills, title in all of the goods will pass to the customer. If the supplier attempts to collect goods under later unpaid invoices, they will have to identify the actual goods supplied under those later unpaid invoices. They cannot collect the earlier goods.
Maybe not a good example in relation to your loan contract but i think you will get the drift.
3) My IP is unencumbered. Im not sure what this means in terms of borrowing more money.
A – Bloody wonderful. Means you have a lot of equity available for your new Ip purchases. Just structure carefully.
Lastly is there anyone out there that can point me in the direction of an interest only loan where I have access to extra payments I make.
A – I would never suggest it. Structure it with an offset account then you have the best of both worlds. Don’t get this confused with a LOC as the redraw of funds may cause you a problem when it comes to make a claim on the redrawn interest.
If in doubt approach a independant mortgage broker and get them to review your position.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
hi andrew west
right click my name.
go to any of the posts with regard to sdg 3
and come along to the next meeting its this sunday 27th at petersham rsl at 4.00 there is usually a broker there.
hope to see you there.
I am a licenced mortgage group broker but don’t broker to the general market place but any question ask away.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
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