Broker offering $20k side loan at Home Loan Rates

[S.T]

not if you are borrowing the money from a bank im afraid.

ok, didn't know that. So bank makes you pay stamp duty at settlement?

 

[DaveM]

Yes stamps are paid via online before or at settlement from funds made available either from purchaser (usually paid to your soli trust acct prior so they pay it) or from borrowed where its a disbursement made in the settlement schedule.

 

[Rolf Latham]

Yes stamps are paid via online before or at settlement from funds made available either from purchaser (usually paid to your soli trust acct prior so they pay it) or from borrowed where its a disbursement made in the settlement schedule.

depends a bit on the state of the OSR too though.

ta

rolf

 

[Aaron_C]

The credit card is drawn down at settlement as vinnnnn said and it cannot be used for any other purpose at settlement. After settlement you can do whatever you want with the card's funds.

 

[Terry_w]

A simple way to proceed would be to borrow $20k from someone and then refinance this loan at settlement.

 

[Mick C]

first Monday back from a 6 weeks relaxing/food infeseasted holiday....sigh

Do you have a website/link to this product?

Have a product fact sheet in PDF format- email me and ill send you the PDF product sheet.

Fifos and general miners are another good fit - often high income and high expenditure, thus good capacity but little deposit but those can generally be convinced to save with reduced term PI home mortgage.

ta
rolf

^ Yep.
Use this a lot for FHOG ( who lack deposit/stamp duty funds) , High income earners with low deposit, OTP Valuation shortfall and Renovators, Lower your LMi cost etc...

Hmm so the broker would help get the credit card first...and then try for the home loan??

Apply for both loans at the same time. No point getting the credit card by itself.

I think stamp duty can be paid x amount of days after settlement anyway. 30 days after in Victoria

http://www.sro.vic.gov.au/sro/srona...575D1000D115ECD1B48B2849A0120CA2575C1008058E7

Most banks will need to see funds to complete; so as mentioned by Tobe - if you getting a mortgage you will need to have the stamp duty funds ready.


----$20,000 VISA----

A few post above has summarize nearly how the extra $20,000 card works, but just adding on;

1. It's a secured loan against the LOAN ( not the property as such), think of it as a "top up loan"

2. Interest rate for the $20,000 only is Your standard home loan rate ( Variable) + 0.10% - So currently around 5.29% + 0.10 = 5.39%

The rest of the loan ( the home loan) is your standard 5.29% ( Variable or lower fixed rate)

3. You can pay down the $20,000 side loan first if you want.


Cheers

 

[christos]

Is this product still available?

 

[Mick C]

Yes.

But max 80% LVR loan + $20,000 only.

( The good old days of the 95% + LMI + $20,000 loans are long gone.......hahaha)

 

[christos]

No problems - I have sent you a PM anyway around getting finance as you suggested that as a possible option on this thread. http://somersoft.com/forums/showthread.php?t=99068

Thanks

 

[Jess Peletier]

I have actually used this product in question through my broker, the card is activated during settlement and only is used on the day for stamp duty and conveyancing costs as such so it takes all in one hit, considering it's on cc at home rates, advantages are cause it's borrowed funds you can claim interest on it as it was the buying costs for property, consequence is 3% outstanding balance every month which I deposit and withdraw to keep claimable interest higher then non deductable debt.

But since i've wanted a higher buffer incase of emergency I've used this product and has been good to release extra cash after purchasing.

That sounds like a tax problem right there. You might want to chat to your tax agent about that - It sounds like the withdrawals would make it a mixed use loan.

 

[MsAli]

( The good old days of the 95% + LMI + $20,000 loans are long gone.......hahaha)

Lucky I got this on a purchase in a rising Sydney market...gained 32% on the property in less than two years...

Downside: have had to pay principal and the rate is higher than the typical rates out there. Sometimes you need to spend money to make money. Not complaining