I just bought my 2nd IP and will be put under my corporate trustee' name.
Need some advice on which bank is good for getting a loan for my IP. My current bank has preapproved us, but are charging bank fees for using the trust i.e $200 for each guarantor. As I will be looking to expand my portfolio, this fee will be charged for each new loan.
Any one who is happy with their bank with low rates and fees, please let me know which bank i should lend with???
Thanks in advance
Rich mum (i like it
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it seems many lenders now have annual or monthly fees, whereas once the big thing was for 'no fees' . Generally it comes under the guise of so-called 'pro-packs', which essentially means you pay an annual fee, in exchange for a reduced or discounted interest rate. You would really need to do the sums to see which loan style and from which lender is more suitable for you. Loan size will make a difference (ie the savings of a 0.5 % interest discount on $100k loan is $500 p.a – but four times that on a $400k loan, and both would have the same fee if you get my drift. The other thing to watch out for is whether or not there are higher exit fees in exchange for a lower rate. Not any drama at all if hanging onto the property for 3 or more years, but if planning on selling you could be up for a fair early payout charge, negasting any interest savings meanwhile. Not sure about the charges you mention though – seems a bit excessive. Also bear inmind, you don't need to use the same lender next time, and it if you are plannign to expand your property portfolio, it is much better where you can to keep your properties seperate, (with the same lender or not) rather than all bundled in together as security on the one loan/portfolio.(
All the best.Hi Rich Mum
Remember, Future loans needn't be with the same bank.
Most charge fees for reviewing trust deeds – and then not even read the thing sometimes!. From memory, ANZ is one of the few that doesn't charge an extra fee for reviewing trust deeds.
Just remember that nearly all lenders will require independent legal advice if there is a guarantee involved, and this means a trip to the solicitor and a few more fees too.
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
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