We are looking to organise finance from alternative sources than our bank.
Over the weekend we had discussions with a mortgage company and they offer reasonable rates and fees.
The main query with have with taking finance offered by them is the Discharge Administration Fee (DAF) of 1% of the initial loan principal amount. This is payable if the loan is fully discharged within 5 yrs of settlement.
Has anyone out there had experience with IP loans with this type of fee before?
Any suggestions or advice most welcome!
[rolleyesanim]That is probably on the cheaper side of things for non Bank lenders. Some are up to 3%!
Terryw
Discover Home Loans
Parramatta
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Terry beat me to the punch.
They would however be wanting to offer me excellent rates and fees for that. Depends if it is a lodoc / nodoc style deal as many try and charge it then to recoup some of their costs.
Without more information difficult to comment.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 7.14%**
Licensed Financial Planner
http://www.yourstatefinance.com
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Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Thanks Terryw,
Would recommend it is not a bad thing then? Would you suggest it is a reasonable fee from a non bank lender?
The variable rates quoted are reasonable given our goal to have each IP sitting on its own, avoiding the cross-security issues we have had in the past with our banker.
Thanks and regardsIf all you want is the property to be a no frills stand alone investment property then i wouldnt be looking at any DEF.
Deal with the right Bank and you will not have CC issues.
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
Yes, try to use the major banks firstly, if you have no choice then go for the smaller ones. It is not nice to have these fees hanging over you head, just in case you need to refinance in a few years.
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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Only 3% gee you guys are using the really nice lenders!
There are soem around who range up to 7% and this includes an internal refinance. Now that seems to be the pineapple treatment to me…
Good to see someone isn’t just focused on the rate and you’re looking at all of the options along with the full package…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Wow!
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
Terry you would probably be amazed at which lender had that fee. They may have changed it now, but it was on a five year fixed rate regardless of when during the fixed period the loan was discharged…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055
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