Bill Zheng's Cashflow Mortgage

[BUNDY]

Whilst doing some research on the net, i cam across Bill Zheng's "Cash Flow Mortgage".

Looks very attractive and interesting, but there is limited information on his website.

I know quite a few forumites have attended Bills seminars, just wondering if he covered this product in more detail or if anyone is using this strategy?

Interested in any feedback.

Cheers

BUNDY

 

[yo yo ma]

http://www.somersoft.com/forums/showthread.php?t=31104
Don't know if you have already read these notes?
There are also some other posts in the "information resources" section...
Steve

 

[geoffw]

As Steve said, it has been mentioned... and there a probably a few more posts. It's worth trying to find them.

 

[Qlds007]

It is not exclusive to Bill Zheng and they are a dozen or so brokers who have access to the product.

 

[BUNDY]

Thank you all for your replies. I have read the attached threads, however they don't contain any specifics re the "Cash Flow Mortgage"

Looking to find out some of the following:
* interest rates charged,
* whether the difference between the interest rate you choose to pay and the actual interest rate is merely capitalised onto your loan, or you get charged a higher interest rate on this cpaitalised interest.
* Whether you can pay lump sums off the loan
* Penalties for early payout of loan etc.

Also wondering if anyone is using this product and how they rate it?

BUNDY

 

[DaleGG]

Hi

Have a close look at the costs to you for redrawing funds from this product; and the level of commissions involved compared to ordinary commissions.

Also, look long and hard at your own financial needs and investment strategies to see if this product is in alignment.

Dale

Whilst doing some research on the net, i cam across Bill Zheng's "Cash Flow Mortgage".

Looks very attractive and interesting, but there is limited information on his website.

I know quite a few forumites have attended Bills seminars, just wondering if he covered this product in more detail or if anyone is using this strategy?

Interested in any feedback.

Cheers

BUNDY

 

[tobe]

I did a bit of research. The rates in the 8% in total, with 4% capitalised in the first year, 3 in the second and so on. There were heft upfronts, and I didnt ask about exit or lump sum payments. It was dificlt to get the broker to call me, they wanted to make an appointment and do it face to face...

 

[redwing]

Can't you do similar with a LOC

 

[Rixter]

Can't you do similar with a LOC

IMHO yeah redwing you can...the only advantage I can see of the CF Mortgage over a LOC is that you can/will preserve your LOC balance if the available funds are tight, by capitalizing in the IP loan itself.

On the other other hand if you have more than sufficient balance available to you in your LOC then you dont have the hassles of setting up a CF Mortgage and then refinancing in a couple years down the track.

Just my observations. Hope this helps.

 

[reidy75]

Cashflow mortgage

Sounds like a really great product, but a couple of things to watch

- Interest rate, seems high compared to what is available elsewhere
- Have been told up front costs may be high (but haven't checked)
- 80% LVR

As has been said, if you have a LOC available, you can do the same thing yourself at a cheaper rate, and it gives you the flexibility to take a higher LVR at the start (and therefore dip into your LOC or other equity less).

If you can come up with a 20% deposit but then can't fund any shortfall, it might be a good idea. But if you borrow 90-95%, the 10-15% you save on the deposit should help cover the shortfall?