Nras

No. No kickbacks, no marketing underwriting. Just an enlightened credit policy which sees non-entity joint venture NRAS properties for what they really are....just another investment property. All that's happening here is NRAS becoming more mature and lenders getting to understand it. I'm pretty sure that by the end of the year most lenders will have a position that NEJV NRAS properties are treated no differently than other investment properties.

In the meantime our finance business is comfortable arranging finance on properties our real estate business sells because we know there are just normal real estate commissions involved.

Regards
Paul
 
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Thanks Paul

So its a mortgage managed/white label product. Advantedge funded? Or Resimac? or Adelaide? Its not likely to be ING - they dont do NRAS, and its not Firstmac- their product isnt available to brokers or mortgage managers.

I'll guess Advantedge, because of your reference to the product being backed by a bank but not being available at a branch.

How does the 95% work? Can an individual NRAS security be funded at 95%? Or is there a requirement fio crossing the NRAS security with another security?

Who is the Mortgage Insurer?

How do they treat the rental income for servicing?

How do they treat the Federal and State NRAS components for servicing?

Which NRAS NEJV are acceptable? There are so many of them and each is different, so I imagine the policy must be specific to particular models?
 
reeco said:
Agreed...However i have a sneeky suspicion its in house finance with a slice of vested interest...Happy to be proven wrong. I do tire of helmet hair so i need to rest the tin hat every now and then :)

Ive checked Pauls website and they like to throw around the term 100% finance in direct regards to NRAS...There definition of 100% finance(according to there Youtube Webinar) is 80% Lender 20% Equity... As in money from your existing portfolio if you have one.

Its sort of saying the sky is blue:confused: ....Other then cash savings where else are folks gonna get the finance to fund the purchase??

My understanding is that its a marketing gimmick to justify the use of the term "100% finance" . VERY bait like in its presentation.

REA have such a stigma attached to them youd think they would try better approaches. Again. My tin hat opinion only. Jokes aside Euro73 you should start something. I can safely say "we" trust you...well i do anyway which is coming from the most sceptical person out there(as you can tell :) ..
Click to expand...

Ahhh..tempting Reeco but who would want to start up a property or mortgage broking business at the moment? reduced comms, problem vals, increased compliance costs... How about I just provide free NRAS advice to the readers of the forum, and keep my day job? :)
 
Hi Euro73,
No its not Advantedge but it's not my role to make a public annoucement on behalf of the lender and this is a public forum. We have credit policy confirmation that our NRAS applications are treated just like any other investment property.

The 95% is not cross-colaterised with other property. I'd have to say though that I'm not encouraging people necssarily to gear that hard. It's still cheaper to go the 80/20 method of financing and avoid LMI costs.

At this stage servicing uses the discounted rent and doesn't include the NRAS incentives so if this is needed for servicing then Firstmac might be the go because of its servicing policy on some of its loans. If this was needed we'd refer a client to them although for some strange reason Firstmac, after relying on brokers for their business for years, don't work with brokers on NRAS loans.

Which ever loan product is used for an NRAS purchase I think that the main point of our discussion is that there have been concerns in earlier comments in these forums about financing NRAS properties. I think people can be comfortable that there are a range of lending options available and these options will only increase over the coming months because competition is actually alive and well in the finance industry.

Regards
Paul
________________________________
Dr Paul Thewlis
 
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Cool. Understand. You're right - its important people understand that there are several finance options available for NRAS now- depending on who the consortium is, of course.

I think it generally boils down to this. If you want borrowing capacity , especially if you intend to buy another NRAS property or two in the coming years, Firstmac is generally the most sensible option because of how they treat the NRAS incentive for servicing, and the fact they do 80% without LMI. If you only ever want to buy one, and can make it service with Westpac or STG, they are probably the other good options, plus the deal you are talking about. Of course, that means significant LMI premiums may be payable, and everyone should lalso keep in mind that LMI applies to Westpac and St George deals for anything above 70% LVR.

Bendigo Adelaide, NAB, Wide Bay, Members Equity also fund NRAS, but they are only doing it for one or two NRAS consortiums and they are kind of deal by deal in their approach. Anyway, some of my previous posts detail the in's and outs of who lends against what, so there's no need for me to go into great detail here again.

The most important thing is that there are at least some finance options now. It may not be 15 or 20 lenders , but at least there are a few options, and they are all pretty decent options.
 
NRAS Lenders

Hi Euro 73,

Thank you for your resarch in regards to lenders for the NRAS product, we also use a non-bank lender called Mortgage House. They're not a broker and actually have their own money to lend, affiliated with AV Jennings.

Formal approvals can be made in as little as 14 days, obviously supporting documentation needs to be in on time. For investing its a 90% LVR in which you can capitalise LMI.

Happy days
 
Mortgage House are a mortgage manager - their money comes from other banks and lenders. They may do 90% for conventional investment purchase, but as far as I know that doesnt include NRAS. You should probably double check just to be sure- and make sure they know its NRAS :)
 
Mortgage House

Hi Euro 73,

That's incorrect the money they make available is derived from a very large loan book of their own. Not the banks, they are a non-bank lender here is a number if you wish to conduct some due diligence of your own Mortgage House Principal - Robert James 0861402543, website www.mortgagehouse.com.au

In addition we have a number of allocations for NRAS product (1114) as a developer predominately makes up 90% of our sales. We were a traditional residential property developer, which we are now 90% NRAS product given that this adds tremendous value to any investors portfolio.

Where else can you get positive cash flow and growth close to the CBD being a brand new property? A brand new property with 7 year structual warranty, high depreciation, low maintenance and very low vacancy?

Its a no brainer
 
Winnie_W said:
Hi Euro 73,

That's incorrect the money they make available is derived from a very large loan book of their own. Not the banks, they are a non-bank lender here is a number if you wish to conduct some due diligence of your own Mortgage House Principal - Robert James 0861402543, website www.mortgagehouse.com.au

In addition we have a number of allocations for NRAS product (1114) as a developer predominately makes up 90% of our sales. We were a traditional residential property developer, which we are now 90% NRAS product given that this adds tremendous value to any investors portfolio.

Where else can you get positive cash flow and growth close to the CBD being a brand new property? A brand new property with 7 year structual warranty, high depreciation, low maintenance and very low vacancy?

Its a no brainer
Click to expand...

Hi Winnie. Welcome

First off who are you representing? It sounds as if you represent mortgage house yet don't exactly say..."our sales" you speak of. Are you a broker of sorts?
 
Mortgage House

Hi Reeco,

"We" is in regards to our property development company, we simply have a good relationship with Mortgage House brought about by the lengthy wait (6-8 weeks) for our clients to obtain finance approval from a bank. Bearing in mind the new NCCP (National Consumer Credit Protection?) ruling is making it even harder for financial institutions to comply and lend. The smaller non-bank lenders simply can act a lot faster, some are privately owned so there are no share holders to look after, the Principal actually can say whether you get the loan or not.

We are property developers and very excited at the moment.
 
Hi Winnie

Im already a great fan of the NRAS- Ive posted extensively on it already, so I agree it can be very attractive to investors who it suits. Just saying that Mortgage House is not actually a lender of their own funds. Their loan book is made up of loans funded by lenders such as ING, resimac, firstmac, Adelaide Bank etc - those lenders provide wholesale funds to Mortgage House, who then brand the loans as Mortgage House - but Mortgage House does not raise the funds itself. They are not a funder, per se.

Im interested to know the NRAS model your allocations are sitting under, because 90% LVR for NRAS approved properties is not commonly available to most the NRAS models.
 
Hi Euro 73,

Thanks for the clarity on Mortgage House and it's also interesting to see that the NRAS product simply hasn't had enough exposure, so thank you for your posts, well informed.

Mortgage House are very pro-NRAS as some of their own staff have interest in the product. 90% LVR and to capitalise the LMI on any NRAS product here in WA is obviously good for us and our clients.

Regards
 
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I've got a similiar response for a 90% LVR from westpac. The person I spoke to from westpac said that they have dealt with a few NRAS deals and feel comftable lending(depending on the circumstances of course) for it.

The person in question said they had to work the system somewhat so it seems at this stage it's a matter of both opinion and prior experience with NRAS. All of which this person has recently accumulated.

So case by case you could say in some regards. Until others get this so called experience with the product, I feel it's an open to interpretation.
 
FWIW I contacted my banker at ANZ regarding borrowing for an NRAS property and she advised (after contacting the lending team) that "ANZ does not have a position on NRAS". After asking her to clarify further, as I was reading it both ways, she said that the property doesn't matter if it's NRAS or not and can borrow 95% as well.

I'm still very skeptical though, if I were to get an NRAS property with ANZ at 95% LVR whether it would go through without a hitch or not is another matter entirely.
 
Kesse said:
FWIW I contacted my banker at ANZ regarding borrowing for an NRAS property and she advised (after contacting the lending team) that "ANZ does not have a position on NRAS". After asking her to clarify further, as I was reading it both ways, she said that the property doesn't matter if it's NRAS or not and can borrow 95% as well.

I'm still very skeptical though, if I were to get an NRAS property with ANZ at 95% LVR whether it would go through without a hitch or not is another matter entirely.
Click to expand...

that would be great.................get it in writing, because the information you have been provided is contradictory

ta
rolf
 
Rolf Latham said:
that would be great.................get it in writing, because the information you have been provided is contradictory

ta
rolf
Click to expand...

Certainly do have it in writing Rolf, our correspondence was via email.

When you say the information I have provided is contradictory are you referring to the statement "ANZ does not have a position on..." or have you been told differently via your brokering channels?
 
Hi

If a lender doesnt not have a "position on x" its not appropriate for the lender to rtn with its max lvr bracket.

I like to call this "if u throw enough mud on the wall, some will stick",which is a poor sales technique in any field, more so when lenders potentially affect someones credit report with that weasel advice.

Its possible that if you include NRAS disclosure in your appln ( as you should !), the lender will run because, to use their words, they have no position on it.

There are plenty of lenders that do " have a position on it" and you would be assured of a reliable outcome, id encourage you to use of those with an idea of what they are taling as security.

ta
rolf
 
Rolf Latham said:
Hi

If a lender doesnt not have a "position on x" its not appropriate for the lender to rtn with its max lvr bracket.

I like to call this "if u throw enough mud on the wall, some will stick",which is a poor sales technique in any field, more so when lenders potentially affect someones credit report with that weasel advice.

Its possible that if you include NRAS disclosure in your appln ( as you should !), the lender will run because, to use their words, they have no position on it.

There are plenty of lenders that do " have a position on it" and you would be assured of a reliable outcome, id encourage you to use of those with an idea of what they are taling as security.

ta
rolf
Click to expand...

Thanks very much for that Rolf. As I touched on before when I read what she wrote I wasn't too sure which way to read it as the context she wrote it in I read it as they don't care either way (ie a goer for NRAS) but after reading here about what lenders think of NRAS I asked for further clarification to which she replied with an answer that said ANZ have no issue lending on NRAS.

Either way a NRAS property is no longer in my future for the next 6-12 months at least. I was seriously playing with the idea a short while ago but I've decided to chase other fish in the sea that suit my strategy better.
 
Hi K

Noooo

My intention wasnt to put you off NRAS stock at all...........more to make sure the answer that you got from your lender was "security" qualified rather than a, its the 28th if the month......"I need to make budget" response.

Now im sure that was not your contacts intention,.

I have asked a specific question from my ANZ folks, lets see what comes back

ta
rolf
 

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