Conflicting info from three different mortgage brokers

Incorrect. The lenders expect it and brokers are assisting to meet the lender expectations. failure to provide the correct info means the application cant and wont be progressed. A lender may not require statements for their own accounts. But the broker may if more than one lender is being considered.

 

Actually the ANZ & CBA checklists say otherwise...

ANZ requires 3 months statements for the account your salary goes into, CBA wants 1 month. Of course they don't need these if you do your banking with them because they've already got them. They both also want fairly detailed information on any other external loans, which is usually satisfied via recent statements.

They say that they don't analyse these for spending patterns, but I don't believe them.

 

A gift to your spouse wouldn’t matter and a gift to anyone probably wouldn’t matter either unless it was a compulsory repeatable gift such as a loan disguised as a gift

 

Telling someone they are mistaken is not disrespecting them. You stated that you owe the forum nothing. The reverse is also true - particularly for a first time poster who has contributed nothing, and got upset because the answers to their questions were not what they wanted to hear. Several very learned contributors responded with accurate information to your questions. What you do with that is up to you.

 

I was not upset because brokers need bank statements for their compliance - fair enough if you need it, and if that is how you assess, or if that is needed by your licence holder.

I was upset because they have a prejudice that people who are questioning why, and even prefer brokers who don't ask for bank statements, as hiding something (which of course for saints like you guys, it does not mean anything, just you know... hiding something with an ill intention) - I can easily find five six statements from many different brokers over here. Just because people lie, it does not mean that everyone lies, and we know many brokers lie too.

I mentioned repeatedly that there are plenty of people who are not comfortable with disclosing financial information if it is not necessary - and when it is absolutely necessary, brokers need to disclose it, likewise if it is not.

I owe this forum nothing for them to accuse me of bad intention, ill character - for hiding something because I am not comfortable with disclosing bank statements and questioning why there are quite plenty of brokers who don't require that.

If you could not distinguish that, then it is your problem, not mine.

 

Equally, if you could not distinguish that the brokers on here are referring to the regulations, and the reasons for those regulations (which, yes, are very specifically because people lie on applications - be it consumers, brokers, or banks), and that telling you that is not a direct attack on you, but a generalisation, well, that's your problem, not everyone else's. No one on here knows you from a bar of soap (this is your only contribution to the forum, after all), so certainly could not know for certain that you lie on applications, but given the history for the reasons for the regulations, the regulatory bodies start with that assumption, and require the audit-able records to show due diligence.

It is absolutely correct to question the collection of personal data, as mentioned by many on here, but the reason has been answered. You should also query the storage, correction, and destruction of said data - organisations should probably be compliant to the APP, and possibly PCI-DSS depending on what data they have. They probably don't need to be ISO 127001 compliant, but hey, if they are, that's even better.

Perhaps you should ask those brokers that have not requested your statements directly on whether it is a regulatory requirement, and whether they will be asking for statements if/when you actually submit an application? Correct me if I am wrong, but you have only been asking about serviceability and borrowing power recently, not actually submitted an application for a few years?

Cheers,
Inertia.

 

Other conflicting information I received from mortgage brokers as I have $1.5m monies in redraw account on my PPOR.

If I redraw this money for the purpose of deposit and duty for new IPs, is this amount tax deductible?

One broker told me: no, it is not deductible as it is a redraw amount from my PPOR
Three brokers said: of course it is deductible, as it is used to buy IPs whilst sending me the link below:
ATO Community

and citing below:
The deductibility of the extra interest depends on if the redrawn funds are used for income producing or private purposes.

If the funds are being used for investment purposes interest would be tax deductible. The purpose of the original loan does not determine the deductibility of the interest.

Who is right, who is wrong?

 

Brokers are not advising on tax matters.

 

I understand the nature of the profession, however many brokers call themselves PROPERTY STRATEGIST, and the bulk of the strategy in investing is on tax matters, how to maximize deductibility etc. and consequently loan structure, cross-collateralization etc.

I am aware of the caveat, but would expect someone with 100+ clients with multiple different scenarios to get something that is quite basic, to be correct right?

I am not criticising anyone here, I genuinely want to know, what is the right answer?

It seems to me should be a quite straightforward question. Anyone has a straightforward answer?

 

They should know some of it.

It is not so simple and straight forward & it takes some time to grasp well or to a decent level.

With the amount of changes brokers have to deal with, I am not sure how they have any room for anything else ! It is a *******o of a job if you ask me.

There are lots on this forum who do not understand it in my exp.

Anyway, for the basics, probably best to have own reading of ATO examples etc, many accountants really also do not specialise in this and can at times mislead.

 

The answer, of course, is "it depends" yes, that is factious, but without knowing the specifics of your situation, no one would be able to give you an absolute answer.

There is some great info available on these forums though, eg:
Tax Tip 6: Using Redraw to invest

 

The straight forward answer is to ask a licensed tax advisor this question. Some brokers do indeed call themselves property strategies, but not tax advisors. Again you think it's basic, but for the broker it could cost them their license.

The question you've asked is fairly common knowledge for an experienced broker, but might be circumstances they're not aware of, nor are they in control of how you actually implement this information. Some brokers will tell you what they believe, others may be more risk adverse and avoid the question.

 

There isnt a qualification of property strategist. But I do know that taxpayers are held liable for how they prepare and lodge tax returns. Self assessment allows taxpayers to report and claim anything they like. But they are liable for penalties even for misunderstanding confusion or mistake...and worse for negligence or fraud and evasion through any means

 

Great post

 

Wow...

One thing I can tell you, you rather have a broker/banker help you out from the beginning to cross the I and dot the T, rather calling 3 or 5 others who say no need. Fast forward, before formal approval, or even half way to settlement when you think its all done and dusted, bank asks for further doc because they can and may get bank decline. Happens any day of the week.

Not all situation are the same. Some banks dont need bank statement for certain type of application, other does. A type of application doesnt need bank statement at the beginning but when it gets to formal approval, application parameter might change, now its required. Bank statements are not only for broker's compliance, bank also needs them, too in most cases.

You used an analogy about cleaning your house before invite guest over. You come in to this forum which essentially is the brokers home and **** talking the host. That seems quite arrogant. No, I am not a broker.

 

I give my tax adviser information that is hopefully accurate and comprehensive, and she can sort out the details. I literally tick off items I can understand - rental income, rates, dividends expenses, etc. Some is too complicated for me, such as foreign exchange and non-primary production. I trust her; she's a professional. That does not remove the liability fro me if she makes a mistake. However, I can show that i have acted in good faith. Everything is disclosed, no trickery that may be caught under part IVA of the ITAA - General Anti-Avoidance Provisions.

I've always provided a lot of information to brokers and explained my situation. My emphasis has been not on income or expenditure, but on how much I can save, which is quite a lot. Except for one mortgage that was IO (as was then fashionable) I've paid off all IP and PPOR mortgages in under five years. I don't like debt. To minimise tax for FY22 I've just paid a year ahead for IP water, rates and owners corporation.

That has happened to me. This is why it was good to have all documentation with the broker, and yet at the last minute the bank wanted further or better particulars, a real PITA. Under four years later the mortgage is gone, with a lot of funds in the redraw and an offset, part of my cash holding. This bank said that I was a marginal prospect. In terms of their profit from me, quite true.