Can someone explain the difference between a “consumer and standard mortgage” and a “standard only” mortgage please.
Thank you in advance. [smiling]
Elka
I’ll take a stab at this one.
Consumer Mortgage: would probably be defined as your normal personal loan. Your standard purchases of cars/caravans/boats etc. Where the Car/caravan/boats is taken as a Good Mortgage over the loan.
Im not sure about a Standard Mortgage, might mean Consumer Mortgage but in a different term….
Anyone else like to try this one…
Hope this helps a little bud.
Joshua McEwen
Finance Consultant – WAMob:0430 452 497
http://www.prestigeloans.com.auBrokers Lic 1297
Licensee Brett ChristieHello Josh
I should have explained further. After reading the post about cross securitisation I emailed my advisor at the bank to ask about the mortgages on my 3 properties.
His answer was that 2 of the properties had “consumer and standard mortgages” and 1 had a “standard only mortgage”.
The property that is cross security for the other two is one that has a “consumer and standard mortgage”. The property I bought last has the “standard only mortgage”.
I wondered what the difference was.
This is not a structure that I would repeat after having spent the last few months educating myself. I am still in the process of asking for answers from the bank but I assume it will cost me heaps to get this untangled. I don’t know if it’s worth doing until I find my next IP and see that I can do better elsewhere.
Thanks
Elka
Elka,
Sorry i am not sure what he is on about. He should be using clear and simple termology to you as the customer. Are you able to PM or reply your home loans and how it is structured so that i can provide some tips to help with your future needs.
Basically your home is either an investment(unregulated) or an owner occupied(regulated) property. All propertys, such as your house are refered to as a Mortgage. I am not aware that their are specific types of mortgages, standard only, consumer etc.
So yeah, if you want to elaborate on your loan structure then ill do my best to give you some tips for the future.
Joshua McEwen
Finance Consultant – WAMob:0430 452 497
http://www.prestigeloans.com.auBrokers Lic 1297
Licensee Brett ChristieHello Josh
Thank you for the offer of help. We are leaving for the coast today (it’s summer here in Europe) but will gladly take up your offer when we get back in a week.
cheers
ElkaNo worries, enjoy your trip and we will talk turkey when you arrive in cold/rainy Australia.
Joshua McEwen
Finance Broker – WAhttp://www.prestigeloans.com.au
Brokers Lic 1297
Licensee Brett ChristieHello all
I have now recieved an answer to the question I posted here from my advisor at the bank. His explination is as follows.
“A Standard Mortgage is taken over Residential Property to facilitate lending for investment purposes, for example, this can be taken over a owner occupied property when it is supporting equity to facilitate lending for a rental property.
A Consumer Mortgage is only taken for owner occupied Home Lending.”
Of cause I still don’t know the fine points of why there is a difference. I thought a mortgage was a mortgage was a mortgage. You default, they take.
Obviously I’m a novice in the world of finance it seems. [blush2]
Anyone enlighten me? Is the difference important?
Thanks
ElkaI think that must be terms that are used by this lender only.
The Australian terms are regulated or unregulated meaning any consumer debt is regulated and business debt isn’t. In the case of properties this applies to your home as opposed to an IP.
He should endeavour to use the industry standard terms to avoid confusing clients – and us [biggrin]
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.
But Simon, it’s the ANZ. As Australian as it gets …. almost. [smiling]
Elka
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