Home loan experts??

Nanna10r · Post by **Nanna10r** » Thu Jan 25, 2007 1:56 am

Nah ya gotta luv EQUITY MAITE

ozx6r · Post by **ozx6r** » Thu Jan 25, 2007 6:17 am

diesel wrote:banks don't own homes. the bloke with the loan does.
they hold a charge over property commonly known as a mortgage.
a charge is a legal document that allows the bank a certain level of control over the property. i.e. if you breach the terms of your credit contract with them, they can sell the property on your behalf in order to recover the debt.
interestingly, i've seen utility companies excercise a similar right.
over a debt less than $1000.

based on that, i can't see how any lender would be dumb enough to offer that sort of product. What happens if the client doesn't make the first payment? They could be stuck with a $300,000 house that they may only be able to get $240,000 in a quick sale (80% of market value is commonly used) and have $360,000 outstanding. That's a $120,000 loss.
Unless they can convince a mortgage insurance company to cover it. In which case you'd be paying close to 40 or 50 grand in LMI.

that's not to say it won't happen, or that you're misinformed. I just hope it doesn't ever happen. a lot of ppl will get in trouble. lenders aren't in the habbit of giving away money.

jason, if ya wanna have a chat, drop me a pm and i'll give ya a buzz or vice-versa.

yeha all of this makes sense to me
within the first few yrs its a big risk really that i hadnt thought about
i will put this to the guy that told me and see what he says

diesel · Post by **diesel** » Thu Jan 25, 2007 10:19 am

actually what felix wrote is a very good point.
However, those in a good enough position to be a low enough risk will unlikely need to borrow that much money, (unless they wanna buy another property and hold the clear title, using just the one property to secure the loan) and probably would be smart enough to not do it anyway.

the customers that this would appeal to unfortunately are unlikely to be able to comprehend what they would be getting themselves into and suffer the exorbitantly high repayments and LMI premiums.

oh and i doubt this will come from one of our banks. they're too conservative.

Stereo · Post by **Stereo** » Thu Jan 25, 2007 12:48 pm

I bought a bike with a cash loan from the bank, it was way cheaper than getting finance through someone like Yamaha (who are a huge rippoff!) .... I just applied online, they deposited the money in my account and I bought the bike "cash", getting a big discount....

This is an unsecured loan too....... Just a thought...

Felix · Post by **Felix** » Thu Jan 25, 2007 1:41 pm

Stereo wrote:I bought a bike with a cash loan from the bank, it was way cheaper than getting finance through someone like Yamaha ...

I bought mine on credit card. I did the math, and it works out cheaper, provided I pay it out in around 12 months, which I am pretty much on target to doing...it sounds like it should be wrong, but it isn't!