and I forgot a more common one - equity release against multiple properties very common and very necessary.
ING Direct Home Loans
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and I forgot a more common one - equity release against multiple properties very common and very necessary.
Can you elaborate on this please?
My understanding that that any equity release that is then put in an offset account (even if the offset account is only used for investment funds) may lose its deductability?
ditto waldo...i've the same understanding as well....borrowed money parked into the offset (even though it is standalone) will lost the deductibility..... would be interested to know reasoning behind this...
The reason is that there is no link between the actual borrowings and the end purpose.
If you cut a bank cheque from a LOC or redraw there is no nexus either........... the money gets traded from your account to a banks suspense account.
same with if you transfer your funds to a solis trust account...........
ta
rolf
Yep it is silly which is why I think a common sense approach need to be taken.
Are thy that bad? I just put in application with ING. The place I'm purchasing has the possibility to be subdivided in the future. I would most likely be wanting to alter the loan in the future. From people's experience are ING no good for this?
To perform a change to the existing loan, ING will essentially require you to reapply from scratch. Pretty much the same process you're currently going through.
I wouldn't say it's that bad, but it's not that good either. Quite a few lenders have similar processes but a couple make it much easier.
I'm not saying they won't do it............. our experience is that variations is not their priority to the extent that some transactions that should take 3 to 5 days can take 3 weeks to 3 months.
any lender that does not allow me to do an upfront valuation is of the preferred product list, and will only be used if there are specific niche circumstances
Thanks
Rolf
A valuation done before you apply for the loan.
What Aaron said, and to expand on the logic behind that
1. you, the broker and the bank really don't want to go through the application paperwork I need to get through all that get a conditional approval and then find a valuer that disagrees with your opinion.
2. Every time you make an application like the above, there is an enquiry on your credit file.
Logical thing to do in most cases if you looking to refinance is to use a lender that will allow you to do an upfront valuation.
Sometimes you have no choice for structural reasons or legacy reasons ( new inherited that lender and you must continue to use because you've paid lenders mortgage insurance, or part of your loan is fixed), but wherever possible we very much prefer to use lenders that have common sense.
Typically speaking, lenders that do not allow upfront valuation at doing themselves any favours let alone their brokers and borrowers.
my guess is that in the middle to long term we will suit all lenders doing some form of front valuation process through the broker channel at least, I think the direct channel will be a little bit slower to get up because bankers tend to do less "mud at the wall type" transactions than your average broker because they have a little bit of REAL desktop data to work with
Thanks
Rolf
Had a deal that I had to try to refinance without a valuation upfront (for several reasons). Valuation came back at $50,000 less than expected. Desktop valuation confirmed the client's estimate but the valuer wouldn't have a bar of it. Sent him/her about 4-5 comparable sales that he wasn't even aware of (he asked where I got them from) - comes back this morning saying 'the comparable sales in the valuation report are the most comparable'. Honestly, what an idiot.
I've had several similar experiences to Aaron with valuers. They either don't like to admit they've made a mistake or they're risk adverse and if they've got a set of data that supports a lower figure they'll go with that. The chances of successfully appealing a valueation are almost zero, the point where the time is better spent going to a different lender and valuer.
Even if the valuer does amend their valuation there's a secondary problem. If the loan is mortgage insurered, often the lender is only allowed to take the first valuation; the mortgage insurer prohibits them from using the amendment. In many cases even if you can get the valuer to agree to a higher figure, you're still in trouble.
Even if the valuer does amend their valuation there's a secondary problem. If the loan is mortgage insurered, often the lender is only allowed to take the first valuation; the mortgage insurer prohibits them from using the amendment. In many cases even if you can get the valuer to agree to a higher figure, you're still in trouble.
It may be possible for you to get an upfront valuation if your broker has good relationships with ING. It's not general policy for ING to do them, but it can be done.
They generally do a full valuation.
They generally do a full valuation.
It's possible - but as PT said, might involve a bit of sucking up by the broker if they don't have access to upfronts.
Cheers
Jamie
