Derivex - interest free loans?

Hi all
I picked up the web address for Derivex www.derivex.com.au on another forum, and it looks very interesting. Interest Free Home Loans!
Anyone have feedback on this? I'm particularly interested in the fact it doesn't need to be mortgage insured, as I'm maxed out on LMI!
 
If it sounds too good...

How do they generate profits?
The underwriter generates their profit from AAA rated cash backed "residual income" securities.
Say again?

Or perhaps from the 5% fee up front, if they were not completely kosher?
 
I will be calling the company during the week and will post any info.

That 5% fee appears to be refundable at the end of the loan.

Cheers,
 
Yes, somewhere in the blurb it mentioned that the 5% is held in reserve in case you default basically. If you do everything right, it comes back to you.
There is a 1.95% fee if you refinance within 5 years, but then again a lot of "non-conforming" lenders charge stuff like that nowadays.
 
Sounds almost too good to be true. Im guessing they invest that 5% deposit/fee before returning it to you at the end of the loan. I look forward to the outcome of your investigation Simon.
 
Hi all. Unless I am missing something here, this has to be the best thing since sliced bread. Has anyone done the math yet on how this would effect tax deductions etc. By not paying interest you lose the ability to claim tax deductions so maybe less of a tax return (or having to pay a tax bill) but the equity you are gaining and interest you are saving would surely outweigh the tax benefits, wouldn't it???? A quick calculation shows that paying one of these loans is better than paying an interest only loan as far as lower repayments goes and your getting equity quicker. Just sounds to good to be true, like I said, I must be missing something. Simon, please get back to us all asap once you have done your investigating.

Regards
Marty
 
Marty,

You would clearly be better off.

I am having a lot of trouble finding a contact number on both the website and the white pages.

They haven't answered my email yet either.

Cheers,
 
Not posting a phone number is unusual. Maybe someone who's in the CBD today should wander over to

[font=Arial,helvetica,sans-serif]Grosvenor Place[/font][font=Arial,helvetica,sans-serif]
[/font][font=Arial,helvetica,sans-serif]225 George Street[/font][font=Arial,helvetica,sans-serif]
[/font][font=Arial,helvetica,sans-serif]Sydney

and see what their offices/PO Box look like and see if they really exist.

An ASIC search shows their principle place of business as Balmoral 2088.

It sounds too good to be true ATM.........

KJ
[/font]
 
Hi again. Makes me think that if this product takes off, surely all of the other lenders would have to offer something similar, just like like when John Symond entered the scene, so things could get really interesting.

Regards
Marty
 
Someone has already been to the building - there is no sign of them on the business directory of a 40 storey building.

Good luck,
 
I don't know that I'd get too worried by that - if they're only new, it can take ages for a big building to update its directory! You'd need to know what floor they're on and then go to that floor I think.
 
Sounds dodgy to me too. There's no Derivex listed in whitepages.com.au.

The domain registrant is Trevor Cohen - try emailing him at trev01@ozemail.com.au.

I'd have expected them to have a licence from some govt body with the 'Financial' in the title.
 
I have a mailing address of:

Derivex Asset Management Limited
> 3/24 Lower Almora Street
> BALMORAL NSW 2088
>

Perhaps they have only shifted recently?
 
I'm also trying to work out - if it is a set up of some sort, how are they going to rip me off? If the 5% isn't payable prior to settlement, then surely they have to put forward a lot more money to me than I do to them.... I'm certainly always keen to know that a company is above board, but I can't work out how I'd get ripped off yet. Any suggestions? At the moment I figure the worst that can happen is I lose my $475 application fee.......
 
http://www.google.com.au/search?q=c...om.au/contact/+derivex+asset+management&hl=en

try this cached page from google.

Contact
If you require further information concerning career opportunities with the Derivex Group in Asia Pacific call or email us in strict confidence.

Telephone: +61 2 9960 6171
Fax: +61 2 9475 0236

General: info@derivex.net
Employment: careers@derivex.net

CitiGroup Centre
2 Park Street
Sydney NSW 2000

IFSC House
Customs House Quay
Dublin 1, IRELAND

Clarendon House
2 Church Street
Hamilton HM11, BERMUDA

245 Park Avenue
Manhattan
New York, 10167 New York USA

Derivex Limited - ABN 36 105 118 401
Derivex Asset Management Limited - ABN 47 105 118 50
 
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