MORTGAGE BROKER CONTRACT ?Binding

M

MiQu

I recently sign a contract with a MB to fund the purchase of a new PPOR.

But just after I posted it, the bank called me and offered a really good deal. The MB knows I was speaking to them as well. I haven't told her I signed it but have mentioned the deal, which she is trying to match, but I don't think she'll do much better.

Silly enough, I did not keep a copy of the contract. I know it had the details of the deal she was getting but it wasn't the offer doc from the finance company.

I was wondering how binding would that be? Is it easy to cancel it?

Any advice or previous experiences appreciated.

Cheers.:eek:
 
Thanks, I think you may be right. I recall "disclosure" somewhere & right to access personal info. But there was a "urgent please sign" sticky note on it. Does that mean I should be able to go with the bank? Is there any "exclusive" contracts as such?

CBA. The MB loan via Macquarie.

Cheers.
 
Hi Rolf

Yes both CBA & Mac loan for new ppor are fully approved.
Discharging old ppor from CBA, but haven't signed the release yet. Mac was going to refinance old ppor as IP.

Cheers.
Miqu
 
Hiya

Macq bank may hit u or broker for 400 to 500, never happened to me but they reserve the right.

Did the CBA initially decline the loan and then come good or were they never approached, until their discharges depmt came into play

You can see where Im heading with this ..............


ta
rolf
 
Hi Rolf

I'm buying in a "hybrid trust". I was wondering if this would be a problem with CBA? or Mac? (don't ask why, its complex) CBA have not asked for the deed yet. Have you had much experience with this?

Its interesting what a bit of competition can do... No, MB not in Qld.

Thanks.
 
Hiya

CBA have a policy of excluding HDTS and UTs from the residential side.

I have see some slip through under the radar, however I wont let my clients work with a bank that will approve the deal on Tuesday and Thursdays, but not on the other days.

I need consistency of treatment long term, rather than "current best rate", because in 2 years time when the client wants to "leap frog" and then the bank says NAH................you have lost much time, maybe a bit of money and usually a huge opporunity cost

ta
rolf
 
Be very careful about how the CBA is structuring the loan for the hybrid trust. They will probably structure it in such a way that you won't be able to realize any tax deductions from it.
 
Thanks guys for the feedback and info. Thats great help.

Has anyone had experience any with Macquarie regarding hybrid trusts?

Cheers.
 
Hiya

Macq is OK with HDTs but depending on the LVR may have its own issues too.

if the loan is 80 % or less Id try and avoid using them for a couple of reasons, one being unnecc LMI exposure.

BUT because they have a great serviceability model it can be hard to get those loans placed elsewhere

ta
rolf
 
"BUT because they have a great serviceability model it can be hard to get those loans placed elsewhere"

Sorry I don't quite understand this bit...
Thanks a lot. Much appreciated.

Miqu
 
What Rolf means is that they calculate affordability in a way that is far more generous than just about anyone else. They're often a lender who can help when no one else can, particuarly when you already have other properties.

All of their loans are mortgage insured (although you don't pay the LMI if the LVR <= 80%). This means they are often best avoided if it can be helped to avoid getting on the LMI radar. Hence they're not my first choice, but useful non the less.
 
Heya,

Just a quick note on the 'contract' - in most cases when MBs are getting people to sign things, it is just a disclosure beast..

I do know of some brokers, who put in a section of fees for loans that were fully approved and the client pulled out for no reason.

You may want to dig it up - or just talk to your broker!! We've all seen all sorts of scenarios... just let them know that you went with someone else (if you choose to) and is there anything else that needs to be ticked off from their end..

Lia
 
At this point your broker should also be able to negotiate the same loan with CBA. You just need to let them know the branch, the deal offered and the person who made the offer.

CBA branches reguarly try to undercut prices. In many cases they only end up undercutting themselves.
 
Spoke to the CBA last night and rasied my concerns re hybrid trust structure & problems others have had.

She checked up her computer and couldn't find anything excluding a hydrid trusts. I have given her the trust docs and asked her to check with the higher authority. It'll be interesting. She seems to think the bank are now more "relaxed" with these structures...

The problem with Mac is that they want to charge LMI, but CBA are happy to waived that. In this case thats worth almost 30K. Thus dilemma of CBA vs Mac...

A broker can only go thru Colonial. My last broker had so much problems with them last time...
 
Hiya

CBA retail and Colonial are one and the same policy..............in my experience.

30 000in lmi ??????????? whats size and lvr is the loan?

Crossed portfolio ?

Ever so slowly all the stuff comes out that allows to help ..............:)

ta
rolf
 
lmi for ppor only, 10%dep,bal 1.4m. no thats not crossed, but with cba both props will be crossed, but plan to release lateer on.
 
MiQu said:
Spoke to the CBA last night and rasied my concerns re hybrid trust structure & problems others have had.

She checked up her computer and couldn't find anything excluding a hydrid trusts. I have given her the trust docs and asked her to check with the higher authority. It'll be interesting. She seems to think the bank are now more "relaxed" with these structures...
Click to expand...

I'd have a few reservations about this. Hybrid trusts are structures which do need to be applied properly to access all of the benifits. If the person setting up the loan needs to look it up on their online system, then they probably don't understand the trust structure properly.

One of my clients actually works for the CBA in their commercial assessments area and has confirmed for me that CBA cannot do Hybrid trusts. I know that the occasional one does get through, but I'm under the impression that this is because someone's asleep at the wheel and has made a mistake.
 
You must log in or register to reply here.

Similar threads

A
first time buyer- mortgage broker
Replies
15
Views
3K
pinkboy
P
J
Frustrating lender
Replies
14
Views
2K
Mick C
Mick C
H
Mortgage broker error, mine or both?
Replies
16
Views
2K
hudbry
H
S
Signed contract, no news from agent
Replies
14
Views
2K
zimby
zimby
H
Off the plan in Melbourne... withdraw issue
2 3
Replies
41
Views
7K
Terry_w
Terry_w
Back
Top