"Redilend Australia"?

[Kennethkohsg]

Dear All,

1. Has anyone previously dealt with or/and successfully get a loan from "Ozero Pty Ltd", trading as "Redilend Australia" or/and from the Asset Lender of Australia, to date?

2. Redilend Australia advertises its loan services quite frequently in the API magazines, on the TV commercials and occassionally in the local newspapers, providing homeloans with lowest interest rate, debt consolidation loans, loan re-finance etc.

3. Among its many advertised advantages of getting loans from Redilend Australia, includes the following: a 100% No Deposit Homeloans, 95%LVR No/Low Doc Loans, lower monthly loan repayments, 95%LVR Loan/Loan Refinance for Credit Impaired borrowers and for Debt Consolidation purposes.

4. Redilend Australia further claims, that it is able to approve loans within 48 hours upon receipt of the loan application and supporting document.

5. We are presently applying for a loan refinance with Redilend Australian for our property at Lot 2040, Swell Residence, 1 Ocean Street, Burleigh head, Queensland, 4220.

6. We have submitted our refinance loan application and all the required supporting documents to Redilend Australia for its loan processing since 26th March 2008.

7. After giving us an "Indicative Loan Approval" for a A$522,000 loan (90%LVR) on 11th April 2008, which is made subject to the following conditions:
a. satisfactory valuation of the security property.
b. Formal approval by the funder.
c. Standard Lending Critieria.

8. Redilend Australia now further requires us to pre-sign a Finance Broking Contract and a Irrecoverable Letter of Appointment of Agent and Cost Agreement requiring us to pay a A$11,000 commission fee to Redilend Australia upon the loan settlement, in order for them to source and secure the abovementioned loan for us.

9. My wife and I are wondering if the present working procedures adopted by Redilend Australia, as well as the additional finance brokering fees charged to the borrowers, are the usual standard finance brokering industry practices and whether these procedures and fee chargeable are actually legally permitted under the existing Consumers Banking Laws or/and the Consumers Credit Code Regulation Laws in Australia , in the first place?

10. Secondly, we are also wondering whether the A$11,000 finance brokering charge for the loan is "reasonable" or "too excessive" by normal industry practice standards?

11. From my own experience and past dealings with some finance brokers as well as from my own continual self-ediucation through this forum, I understand that finance brokers in WA, do not normally charge such a finance brokering charge as they are paid some commissions by the end lenders for each successful loans referral.

12 However, we also known/heard of many finance brokers operating out from Queensland or/and NSW, who will charge these additional fees to the borrowers, in addition to their usual bank commissions received from their lenders for each successful loan referrals.

13. However, please note that in our earlier investing days back in 2003, we have previously paid some A$6,000 plus as finance brokering fee/commission fees directly to the finance broker at QMB in Queensland for helping us to arrange A$440,000 loan with La Trobe Homeloans for my Australian company at the last minute when many other finance brokers are unable/failed to get us the required loan for the land purchases and house construction.

14. Consequently, we will like to invite the various highly experienced and well-informed members who are present practising finance brokers, to further comment and advise us regarding our loan application:- i.e. whether we should further proceed to get the 90%LVR Low Doc Loan with this loan application through Redilend Australia by paying its A$11,000 finance brokering fee.

15. We further observe that the present procedures presently adopted by Redilend Australia, is very much similar to the procedures being adopted by the Asset Lender of Australia.

16. We have previously also applied for a 80%-90% LVR Loan with this Asset Lenders of Australia in November 2006, to settle on our off-the-plan purchase for the property at Lot 2040 SWELL Residence.

17. After collecting more than A$1500 worth of loan application/valuation fees upfront, the Asset Lender of Australia has continually failed to get us the required 90% LVR Low Doc Loan from its various lenders, including GE Capital, though it has previously advertised itself as capable of doing so.

18. Consequently, we managed to get our 80%LVR Low Doc Investment Loan from AIMS Homeloans to settle on our property purchase in April 2007 through Mis Janine Carpenter, a finance broker at the Independant Mortgage and Finance Services (IMFS).

19. Hence, our present uneasiness with the loan application with Redeliend Australia.

20. We are still not sure regarding the background and current status for both Redilend Australia and Asset Lender of Australia are actual bona fide finance brokering companies within Australia or/and approved MFIAA members.

21. I have made a search for both "Redilend Auystralia" and "Asset Lender of Australia" on this forum but there appears to be nothing written/said about them in this forum, to date.

22. For your further comments and discussion and advice where neccessary, please.

23. Thank you.


Cheers,
Kenneth KOH

 

[GoAnna!]

The pre approval doesn't sound like its worth the paper its written on. Subject to valuation, formal approval and standard lending criteria? You'd do as well putting your numbers into a "how much can i borrow?" calc found on most bank sites.

What is the $11K for exactly? What if they fail to get the loan?

I am assuming that this is not a commercial loan where upfront fees to the lender are more normal. And it's not a LMI fee?

I would have thought that given that MB are paid by the banks it would be unusual for them to also charge their client.

Can I ask why you were atracted to this company in the first place? Their advertising suggests they are a place of last resort for the very desperate. I imagine they are therefore free to inflict pain on those who have nowhere else to go.

 

[Rolf Latham]

Hiya Kenneth

Most of this seems unusual, but not uncommon.

Many small "brokers" with their "own" product to flog will try it on with 1 to 2 % brokerage, hoping to slide it through, and in addition often loading the product with a 1 to 3 % deferred establishment fee in the first 3 to 5 years.

I suspect you do have other options

ta
rolf

 

[Bradsdad]

G'day Kenneth,

Got to love a lender/mortgage manager who operates out of a PO Box.


Actually...........for $11k per client I may have to get myself a bigger PO Box.

BTW, as Anita pointed out, your approval would want to be on a soft paper so it was at least of some use to you.

Out of interest what sort of rates have they quoted you?


Regards
Steve

 

[Kennethkohsg]

What is the $11K for exactly? What if they fail to get the loan?

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Dear GoAnna,

1. The A$11,000 is supposedly for the finance brokering fees payment as charged by Redilend Australia, for its official appointment and for acting as our MB "agent" to source for the loan, on our behalf, similar to the fees charged by a Buyer Agent. This is as per the clarification made by Max Gage from Redilend Australia. It is definitely not for the LMI Insurance fee payment.

2. Redilend Australia claims this is standard procedure under the Australian Banking Laws, which is highly suspicious as I have dealt with some MB and successfully secured loans for ourselves, without having to undergo this procedure at all.

3. According to Redilend Australia, it will not charge any fee if it is not successful in getting us the loan.

4. This is also what the Asset Lender of Australia, has told us previously.

5. However, when Asset Lender of Australia failed to get us the required loan as per its indicative loan approval issued to us previously, it has also refused to refund us, our downpayment deposit fees subsequently that it has pre-collected which it has previously told us, would be "refundable". Such fees pre-payment was supposed to be refunded if the loan application was unsuccessful.

6. Consequently, one of the major lessons which I have learnt from my past dealings with Asset Lender of Australia, is that the so-called "Indicative Loan Approval" Letter does not actually amount to anything for the client. At best, I will treat it as similar to the Bank's Loan Pre-Approval Letter.

Cheers,
Kenneth KOH

 

[Kennethkohsg]

Can I ask why you were atracted to this company in the first place? Their advertising suggests they are a place of last resort for the very desperate. I imagine they are therefore free to inflict pain on those who have nowhere else to go.

**************************
Dear GoAnna,

1. Though I do normally go through the same few finance brokers, who have successfully get us some mortgage loan for ourselves before, and use their services, I will normally also want to further try to test out our own actual borrowing limits especially with those new MBs with new loans products being launched in the market.

2. This is part and parcel of my continual self-education regarding the best way of getting my own property finance in Australia and maximising our own borrowing limits. At the same time, I am also trying to develop my own list of reliable MBs to service my overseas co-investor clients in the near future.

3. In this case, what appeals to me regarding Redilend Australia, is its speedy 48-hours loan processing outcome, its continued availabllity of 90%-95%%LVR No/Loc Doc Loan products under today's "tight" lending credit environment, as well as to learn/find out exactly what is Debt Consolidation Loan and its fees/charges etc directly from Redilend Australia directly for myself.

4. This is especially so when my family and I have newly attained our Australian Permenant Residency Status in Feb 2008 and we are in the process of getting a higher than the usual standard 80%LVR loan through some loan re-financing process.

5. I was also interested in its 100% No Deposit Loan product being presently marketed by Redilend Australia, on my daughter's behalf, whom I am presently trying to, also arrange such loan for her to buy a property for herself before the end of this financial year.

6. My usual MBs have already advised me that they are presently unable to get me these products now, unfortunately, due to the recent Crunch Crisis and the tightening of credit lending by many financial institutions in Australia.

7. My own MBs have further advised me that have we been issued with the Australian Permenant Residency status some 6 months earlier, they would be able to do these higher LVR loans for us.

Cheers,
Kenneth KOH

 

[Kennethkohsg]

Dear Kenneth KOH

If the refund was in writing and a not small amount of money I would be taking the matter further.

OR

can you tell Redilend that you cannot go forward with the current loan application fee of $11K until those previous monies are refunded. Then once refunded go elsewhere.

They are as you say not at all true to their word. I think you could get a better deal almost anywhere else!

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Dear GoAnna,

1. In this regard, I will adopt a "wait and see" attitude to see what Redilend Australia will actually do in my case.

2. Despite Redilend Australia having issued us their Indicative Loan Approval on 11th April 2008, I have just received an email from its Customer Care Dept last evening, to say that our loan application has now been declined.

3. I further suspect that Redilend Australia is likely to lodge this loan application decline record with Veda against my own credit reference history in due course.

4. Should this happen, what then, are my own legal rights/"redress" options and to whom should I be filing my complaint with?

5. Could you and/or the other MB members, further advise me accordingly, please?

6. Thank you.

Cheers,
Kenneth KOH

 

[Kennethkohsg]

G'day Kenneth,

Out of interest what sort of rates have they quoted you?

Regards
Steve

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8.8%pa. as per the Indicative Loan Approval Letter issued by Redilend Australia to us.

Cheers,
Kenneth KOH

 

[Kennethkohsg]

Hiya Kenneth

I suspect you do have other options

ta
rolf

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Hi Rolf,

1. Thanks for your feedback.

2. What are my other options available as far as you are concerned, please?

3. Thank you.

Cheers,
Kenneth KOH

 

[Kennethkohsg]

Hiya Kenneth

Most of this seems unusual, but not uncommon.

Many small "brokers" with their "own" product to flog will try it on with 1 to 2 % brokerage, hoping to slide it through, and in addition often loading the product with a 1 to 3 % deferred establishment fee in the first 3 to 5 years.

ta
rolf

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Hi Rolf,

1. Max Gage from Redilend Australia has claimed that the procedure used is standard industry practice and that this signing of the Finance Brokering Agreement is legally required under the Australian Banking Act.

2. Yesterday afternoon, Max from Redilend Australia also phoned me up in Singapore to tell me that by refusing to sign the Finance Brokering Agreement, I am actually not complying to the Australian Banking Act.

3. Consequently, he and his Redilend Australia would not be able to give us the loan as we have failed to comply to the Australia Banking Act Laws.

4. I was and still am highly suspicious of his claims as I felt that Max and his Redilend Australia were begining to resort to using "strong-arm" sale tactics on me then, by issuing a 24-hours ultimatum deadline for me to sign the Finance Brokering Agreement and to submit back to them, failing which, Redilend Australia would automaticallyl "cancel" our loan application.

5. Hence, my new thread and posts in this forum yesterday, seeking the members' advice and for our own subsequent discussion and public education in this forum, please.

6. Our biggest concern then was:- If we were to sign the Finance Brokering Agreement, and if Max and his Redilend Australia were to fail to get us the required loan eventually but still insist of we paying their A$11,000 Finance Brokering Fee, on the basis of the signed Finance Brokering Agreement, what are we going to do then?

7. Please further note that Max and his Redilend Australia were not prepared to issue us a written Loan Approval from its end funder first before the signing of the Finance Brokering Agreement;- even though we are prepared to undertake to sign the Finance Brokering Agreement and to pay them the required fees subsequently, upon first sighting the issue of the Full (Unconditional) Loan Approval Letter from its appointed end funder for the (approved??) loan.

8. For your further comments and discussion, please.

9. Thank you.


Cheers,
Kenneth KOH

 

[GoAnna!]

What does the brokering agreement actually say? What are they asking you to agree to that you do not wish to agree to?

 

[Kennethkohsg]

What does the brokering agreement actually say? What are they asking you to agree to that you do not wish to agree to?

*********************

Dear GoAnna,

1. The key Clauses in question, are as follows:

a.. Our Panel Lenders: - "...Subject to meeting their Credit Criteria, we are able to obtain credit for you from those lenders."

b. Fees payable by you: A$11,000 incl GST.

c. If the loan is approved ...which is different from the loan terms specificed above... the commission shown in this document is still payable".

d. "We indemnify Ozero Pty Ltd ( trading as Redilend Australia) from any legal action or recovery of and all monies in respect of this application..."

e. . "We also surrender our right of appeal and will not pursue Ozer Pty Ltd (trading as "Redilend Australia") legally in any way...."


2. So, the issue at hand are as follows:

a. Has Redilend Australia already successfully secured a loan from one of its end funders as per the agreed Indicative Letter of Loan Approval, at this point in time?

(Note: Max from Redilend Australia has refused/failed to disclose this outcome to me despite my repeated queries.)


b. If no, What will happen to us after signing the Finance Brokering Contract when Redilend Australia subsequently, either

(1) fails to get us the required loan as per its initial Indicative Letter of Loan Approval or/and

(2) get us a loan, which have very different loan terms and conditions from what we have actually wanted, (as Redilend Australia and we have both initially understood and agreed between ourselves previously),

and yet insist on we paying them the A$11,000 Finance Brokering Fee?


3. For your further comments and discussion, please.

4. Thank you.

Cheers,
Kenneth KOH

 

[APerry]

7. After giving us an "Indicative Loan Approval" for a A$522,000 loan (90%LVR) on 11th April 2008, which is made subject to the following conditions:
a. satisfactory valuation of the security property.
b. Formal approval by the funder.
c. Standard Lending Critieria.

Brokers who try to pass themselves off as lenders and give "indicative approvals" when they have no role in the credit process is a pet hate of mine. I would stay well away from this company.

 

[Spectre]

"Generally speaking" we do the finance broking contract at the time of application

Theory being you know what you're up to prior to jumping through the hoops. You get a copy and the broker holds the other.

On the interest rate.... I would think that getting a low doc at 95% and being able to acquire a rate of 8.8% is (in considering the deal) unbelievable in this case. Most of the low/no doc stuff for aussie residents over 80% (with the exception of rams and aims as your main other sources I suppose) is heading well into the 10-12% range.

Which may be why they want the $11k to offset the loss in rate.

Maybe a question could be posed if you didnt pay the $11k what would the rate be as a result.

I think there will start being situations where fees get charged by MBs to clients as banks lower their commission structures but $11k is a bit much for my liking.

 

[GoAnna!]

a. Has Redilend Australia already successfully secured a loan from one of its end funders as per the agreed Indicative Letter of Loan Approval, at this point in time?

(Note: Max from Redilend Australia has refused/failed to disclose this outcome to me despite my repeated queries.)

Kenneth

If they can't "look you in the eye" and tell you if your loan has been approved by an actual bank I don't see how you can consider doing business with them.

I may have missed something but why the rush? Why not wait until you are more qualified a few months down the track and have more options available to you?

If you really really need to go down this path why not have the $11K placed in a trust account with an agreement that it be handed over once formal offer as previously described is provided. Negotiate the $11K down as well !!

Personally with this level of trust involved I would not proceed unless I was ready to kiss my $11K good-bye.

Maybe chat to ACCC and Office of Fair trading to check if thre are already exising compaints against them.

 

[GoAnna!]

PS

Kenneth I think the main issue here is not if $11K is fair fee but will you get anything for your money.

I have personally paid more than $11K upfront to solve a lending issue (normal part of commercial lending usually) but I was confident of the transaction at the time I paid.

Maybe my brokers are unusual but they always tell me which banks they are talking to on my behalf. In turn I would never repay them by going to the bank directly and thereby cutting them out of the deal.

 

[Kennethkohsg]

PS

Kenneth I think the main issue here is not if $11K is fair fee but will you get anything for your money.

I have personally paid more than $11K upfront to solve a lending issue (normal part of commercial lending usually) but I was confident of the transaction at the time I paid.

Maybe my brokers are unusual but they always tell me which banks they are talking to on my behalf. In turn I would never repay them by going to the bank directly and thereby cutting them out of the deal.

********************
Dear GoAnna,

1. I fully agree with you regarding this concern.

2. Unfortunately, in my own present dealings with Redilend Australia, there are simply too many indications/ areas suggesting that Relilend Australia may fail me eventually, just like the Asset Lender of Australia has similarly failed me previously.

3. That is why I am getting "uneasy" regarding the whole loan processing.

4. Thank you.


Cheers,
Kenneth KOH

 

[Kennethkohsg]

Brokers who try to pass themselves off as lenders and give "indicative approvals" when they have no role in the credit process is a pet hate of mine. I would stay well away from this company.

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Dear APerry,

1. I am personally, not sure myself, even at this point in time, as to whether or not, Max and his Redilend Australia is indeed merely a MB and trying to pass themselves off as the lenders, in this instance.

2. Is there any way we can go about officially establishing Redilend Australia's status? With whom do we need to check this out with?

3. When Max from Redilend Australia phoned me up in Singapore during yesterday afternoon, he is still "insisting"/"hinting" that Redilend Australia has its own monies to fund the loan.

4. When I further clarified if Redilend Australia is indeed going to be the end funder for the loan, in this case, he kept "silent" and failed to confirm or/and disconfirm for me wherer neccessary.

5. I would certainly expect Max and Relilend Australia to immediately, positively and emphatically confirmed for me that this is indeed the case, if it is indeed a bona fide lender.

6. However, Max failed to do so and I felt uneasy about this silence.

7. When I further asked Max, " at what loan terms will the loan be given?" He turned silent again and continued to failed to answer my query.

8. What and how then, do we actually go about checking and ascertaining in advance, whether or not, Relilend Australia is actually an end lender for the loan or not, in this instance and without having received any officially Loan Approval Letter from any of its end funders to date?

9. Looking forward to learnng from you further please.

10. Thank you.

Cheers,
Kenneth KOH

 

[Kennethkohsg]

"Generally speaking" we do the finance broking contract at the time of application

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Dear Lukentel,

1. Though i agree that this is is logical and rightfully so, however, this has not been our experience so far;- whether when we have been successfully dealing with QMB or/and with this Redilend Australia in this instance.


2. Relidend Australia has failed to highlight this need to sign a Finance Borkering Agreement first before the loan processing is to take place after receiving all our loan application and its supporting documents.

Cheers,
Kenneth KOH

 

[Kennethkohsg]

On the interest rate.... I would think that getting a low doc at 95% and being able to acquire a rate of 8.8% is (in considering the deal) unbelievable in this case.

Most of the low/no doc stuff for aussie residents over 80% (with the exception of rams and aims as your main other sources I suppose) is heading well into the 10-12% range.

Which may be why they want the $11k to offset the loss in rate.

Maybe a question could be posed if you didnt pay the $11k what would the rate be as a result.

I think there will start being situations where fees get charged by MBs to clients as banks lower their commission structures but $11k is a bit much for my liking.

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Dear Lukentel,

1. I have no problems paying a higher interest rate for the 95% LVR loan in this instance, if this is indeed the actual situation.

2. As one of his clients, I will expect Max and his Relilend Australia to be openly honest and upfront with me regarding this arrangement. This is especially when I am a "new" client for Relilend Australia.

3. Thus, like me, you have your own doubts about Max and his Relilend Australia's loan offer as well as their personal/professional credibility in this instance, isn't it

4. For your further comments and discussion, please.

5. Thank you.


Cheers,
Kenneth KOH