Wizard Homeloans... Letter today!

G

GordonGekko

Hi Forumites!

I got another of these dreaded letters ... your interest has risen due to creditcrunch yada these are you new payments yada.

i thought we were out of the worst part of the storm , but i guess wizard just likes to earn more $? , anyway im 1/4 variable 3/4 fixed. so its ok with me... but im thinking of all the other people who is fully varriable and on bigger mortages ... whats your take on the whole credit crunch? and wizard in particular?

im at 61% LVR with a good job , and they did not want to give me 25k for reno's! they are blaming management that they have very strict criteria's now...

thank you for any reply.

GG Jr.
 
I'm with a non bank lender, too and have similar experience.
My most recent deal requires me to borrow $300k. The cost of fixing seems too high to me. I'm taking a punt and going 100% variable. My other loans are fixed at 7.45% for 5 years, so overall, I'm not in a bad position, I guess.
From the discussions I had with some of the banks last year, It didn't seem that any of them would have lent me what my non-bank lender has, so despite the higher cost of the finance, I've been able to buy more properties. For me, that's the name of the game. It's all about leverage!
 
I'm with RHGL (the scraps left over from Rams), I'm fully variable at 10.44%, we've had 7 rate rises this financial year.

I'm in the fortunate position of holding the loan open to have quick access to funds via redraw (PPOR)......so 10.44% of almost nothing is almost nothing. I really feel for the people who have hundreds of thousands with them at the moment - it' cannot be very comfortable. I'm sure lots are refinancing.

Cheers
Buddybee
 
Buddybee said:
I'm with RHGL (the scraps left over from Rams), I'm fully variable at 10.44%, we've had 7 rate rises this financial year.

I'm in the fortunate position of holding the loan open to have quick access to funds via redraw (PPOR)......so 10.44% of almost nothing is almost nothing. I really feel for the people who have hundreds of thousands with them at the moment - it' cannot be very comfortable. I'm sure lots are refinancing.

Cheers
Buddybee
Click to expand...

Landed myself in a similar situation except for the 'almost nothing' part... I got around $700k at 10.xx% variable with MacQuarie :(

I always prefer fixed, but it was the only loan I could get at the time, under the circumstances (no doc, company & trust, etc.).
 
On a similar / related note re Macquarie...

Macquarie has made the decision to suspend the origination of fixed instalment personal loans, effective 20 June 2008. This is principally due to current conditions in global credit markets and the subsequent increased cost of funding.
Loans that have been approved prior to close of business 20 June will be honoured and funds will be settled up until 90 days from the approval date. This means your customers will need to ensure they return their loan documents to us prior to that date.

The suspension of the origination of the fixed instalment personal loan product will have no impact on existing borrowers, who we will continue to service as per normal.

We are investigating alternative loan products and hope to provide you with the opportunity to further expand your product offering in the near future. This decision does not effect any other products provided by Macquarie.
 
ianvestor said:
Landed myself in a similar situation except for the 'almost nothing' part... I got around $700k at 10.xx% variable with MacQuarie :(

I always prefer fixed, but it was the only loan I could get at the time, under the circumstances (no doc, company & trust, etc.).
Click to expand...

Ouch! We are in a similar situation with structure - we are self employed, and finalise our company/trust structure this week to start the next phase of our journey - primarly to purchase Investments. Your story is one of the reasons why I've kept our PPOR loan open, but by the sounds of it, I shouldn't bother!

Oh well, chicken and egg stuff here - need to get the structure in place, then move into finding finance, opening bank a/c's etc.

Cheers
Buddybee
 
With the amount of equity you appear to have structured properly you should still be able to obtain adequate funding at a competitive rate of interest.

Both the old Rams, MacB and several of the other small no / lodoc lenders have completly priced themselves out of the market place.

Client rang me this evening to tell me his former Nodoc loan has now gone to 11.35%. Given the facts i have told we could refinance at 8.87%.

Moral of the story is to shop around as competitive deals are certainly still out there.
 
ianvestor said:
I got around $700k at 10.xx% variable with MacQuarie :(

I always prefer fixed, but it was the only loan I could get at the time, under the circumstances (no doc, company & trust, etc.).
Click to expand...

Just spoke to the MB about this... I wasn't sure if I was remembering right, but basically Mac are fast at processing loans... I wanted to beat another buyer with a 21-day contract, and I think I wrote 8 or 9 days for finance. I also had to put in 30% because my ABN hadn't been GST registered for 2 years yet.

Now that I've got some breathing space and not under a deadline, MB says refinancing won't be a problem since apparently I can have GST registration backdated? Is this true?

I'm wanting to get an 80% no-doc, company/trust, fixed IR, IO, full offset.

Currently have a 7-year-old ABN but only GST registered since Dec 07.

-Ian

Edit: MB = Mortgage Broker, not Mac Bank
 
Yes you can back date your GST registration but i am not sure that is what i would be suggesting to a client if it is done to merely get around the financing issue.

Should still be able to get a sensible rate deal with GST reg for 7 months given the ABN has been 7 years or so.
 
Qlds007 said:
Yes you can back date your GST registration but i am not sure that is what i would be suggesting to a client if it is done to merely get around the financing issue.
Click to expand...

What are some other reasons people would backdate it? I have never collected it or submitted it, so I'm still a newbie at GST stuff.
 
ianvestor said:
What are some other reasons people would backdate it? I have never collected it or submitted it, so I'm still a newbie at GST stuff.
Click to expand...

If your line of business isn't affected by GST (one of very few) then get a letter from your accountant stating as much.
Reasons for having it backdated may include people needing to pay GST received prior to being registered or they are declaring income over the threshold to a potential lender. Some lenders will argue that if you weren't registered for GST within a year then you weren't earning above the threshold with that period. As such their confindence in the higher declared income tends to wain.


Regards
Steve
 
Im with wizard as well, same as you have most of my loan fixed at below 8% which was handy.

However i seem to be getting one of these letters once a fortnight.

Gives me the shits...... At the start of the issues got one that said "Dont worry we have GE we will be fine"

Then every 4 weeks after that get a letter with rates going up

Still not hurting to much for the bank at least
 
GE Money (Wizard's funder) is probably the most secure lender on the planet at the moment. They're rated 'AAA' instead of 'AA' (the major Australian banks) or lower.

The money is secure, but that doesn't necessarily relate to cheap.
 
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