Borrowing capacity

Discussion in 'Loans & Mortgage Brokers' started by freddy, 18th Jan, 2022.

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  1. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    ARPA regulates banks. Pepper, Liberty, Bluestone and many others are not banks.

    However all credit activity is regulated by ASIC, so there are still some constraints on the 'non-banks'.

    These lenders offer an 'offset redraw'. It's a redraw facility dressed to look like an offset account.
     
    Peter_Tersteeg, 18th Jan, 2022
    #41
  2. freddy

    freddy Well-Known Member

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    Too easy then. Get equity out of big 4 for deposits and then loans from pepper etc
     
    freddy, 18th Jan, 2022
    #42
  3. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    If you have no borrowing capacity with them, then how are you going to get equity out of the Big 4?

    This will shock many, but releasing equity actually means borrowing money.
     
    Peter_Tersteeg, 18th Jan, 2022
    #43
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  4. freddy

    freddy Well-Known Member

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    Even better!!
     
    freddy, 18th Jan, 2022
    #44
  5. jaybean

    jaybean Well-Known Member

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    Does that affect the tax rules? Will the ATO say no that's contaminated money because it's technically not a real offset?
     
    jaybean, 18th Jan, 2022
    #45
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