Hi There,
My husband and I did the sums recently and discovered we could get an extra $700 per week in cash flow (from wages) if we were to refinance and take out interest only loans on 3 of our houses.
We are looking for a mortgage broker that can help us. Can anyone recommend one or are there any out there that can assist?
Cheers
AlisonI am sure most brokers would trip over themselves to help you refinance – I know I would [biggrin]
Firstly consider checking if your current lender will refinance to IO for you. If they have decent products then this may well be your easiest, fastest and cheapest option. Consider a Pro Package with them to reduce application fees and use their interest rate discount.
Be careful that any broker you speak to doesn’t refinance you to another bank just for the sake of it – he wont get paid if he tells you to stay put[blush2]
All the best
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Jessica,
Simon is as always bang on.
A MB gets paid a commission which varies dependant on the loan size. Regretfully as in every industry there are Brokers out there who will refinance your loan just to earn a commission.In saying all of this a good Broker can analyse your position and suggest ways of structuring your loans that will benefit you now and in the future and map out a pathway for your future investing.
They can look at ways of saving you money through a variety of products and have access to many more lenders and options than 1 Bank alone would have.
Just make sure you get all of the facts before proceeding in a refinance for refinancing sake.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 7.14%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
I agree with the comments above and I would also recommend that you check into the experience of the broker you use and what their fees and charges are.
Look for a broker that doesnt charge a brokerage fee so that it wont cost you any more to go through them than if you went direct to the lender yourself (as we get paid a commission from the lender for putting the deal through them anyway). Also look for one with a MINIMUM of 3 years experience in mortgage finance as anything less than that they may not have the knowledge you need.
Also keep in mind future plans when thinking about which lender you choose.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]I think Anita is right but personally would want more than 3 Years experience from anyone i trusted my finances with.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 7.14%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
I agree but I often go to training courses and you get brokers that have literally JUST joined the industry and have absolutely no idea what they are doing – it makes me shudder to think what type of strucutres the clients end up with and how much it costs them. At least if they have at least 3 years experience then they would have learned from some of their mistakes and dropped out if they were particularly pathetic.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]I’ve just seen a family with big problems at least partially caused by a broker. Since there were 4 family members wanting to buy their house together, the broker suggested they use a company. Unfortuantely they did. So for the past 10 years they have been paying an extra $7,000 pa in land tax, and now when they are going to sell they will be up for a huge tax bill – purchased for $300,000 selling for $1,500,000!! probably around $360,000 in tax unnecessarily. All because of the broker’s suggestion.
Terryw
Discover Home Loans
Parramatta
[email protected]
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Just send me a blank email, with “subscribe†in subject line.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
Exactly Terry
Scary sometimes isnt it that they let these guys out there on their own.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 7.14%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Jessica – What period of interest only were you looking at?
Terry – What would have been the best structure for that scenario you speak of?
Thanks,
Steve (YI)“Knowledge is Power”
Steve
This situation was extremely messed up. I feel sorry for this family. Their accountant died a few years ago leaving them in a real mess too with rates and land tax notices piling up, unbeknown to them they also received a bad credit rating.
There were 4 brothers involved and they purchased their family home to live in with their parents. Since it was their PPOR they should have purchased in their own names. This would give them no CGT and no land tax problems. But having 4 people on title is a bit of a waste of the Main residence CGT exemption. So it would have been preferable to have just one on title.
The strange thing is, one of the brothers owns 4 townhouses in his own name too! This should have been done in a trust structure, or maybe in one each of the other brother’s names.
They could have had the whole thing tax free if planned properly.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.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
oh my goodness – what a nightmare – i think that is advice that people should get from their accountant not a broker – if we just stick to finance advice that is better for everyone concerned.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]Originally posted by Anitamarshall:oh my goodness – what a nightmare – i think that is advice that people should get from their accountant not a broker – if we just stick to finance advice that is better for everyone concerned.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]Are you qualified to give Financial Advice Anita?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Jessica:Hi There,
My husband and I did the sums recently and discovered we could get an extra $700 per week in cash flow (from wages) if we were to refinance and take out interest only loans on 3 of our houses.
We are looking for a mortgage broker that can help us. Can anyone recommend one or are there any out there that can assist?
Cheers
AlisonHi Alison,
As previously mentioned you may be able to achieve this with your current lender, but more importantly use this opportunity to insure you have the correct finance structure/product in place.Interest only repayments on non deductible debt is pretty much stock standard for the majority of investors, yet you have only recently discovered this which leads me to believe you have been poorly advised by your current lender or broker, if this is the case then I would be very surprised if your current structure/product etc is the most suitable for you. 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.
No, i am not qualified to give taxation advice. I am a mortgage broker only so therefore would recommend that clients seeking financial advice regarding structure for taxation purposes seek advice from their accountant. I often call their accoutnants for them and discuss structure for the client. I do know of a few brokers who are also qualified as financial planners but I honestly dont know how they would keep up with all the changes in 2 industries.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]Hello Steven
Did you say that IO loans are stock standard for non deductable loans e.g buying your PPOR? I’m confused. I would have thought that that was one debt that you would try to reduce for that very reason. Can you explain further please.
Thanks
ElkaSorry Elka, I meant to say deductible debt, 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.
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