Financial Lenders for Renovations

Discussion in 'Loans & Mortgage Brokers' started by Arnel, 30th May, 2019.

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  1. Arnel

    Arnel Well-Known Member

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    Hello :)

    Can someone recommend financial lending companies who would offer interest free terms for clients looking to renovate.

    Lending amounts up to $30k

    I have a lot of clients who ask the questions do we offer fianance. So I am exploring options and services to offer.

    Thank you in advance
    Arnel
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    I’m not aware of interest free loans for general renos - I’m sure there’s probably larger kitchen and flooring companies that offer some sort of interest free period though.

    Having said that - plenty of banks allow clients to release equity against their home at owner occ rates to carry out renos. If you haven’t already - it might be worthwhile developing a relationship with a decent finance person who can help.

    Cheers

    Jamie
     
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker Business Member

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    No one offers interest free loans for renovating.

    Some companies offer interest free loans for purchases of appliances etc.
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    What would be the benefit to the lender for such a service ?

    ta

    rolf
     
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  5. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    zero gain liability headache... absolutely free, who would not want that ;)
     
    Last edited: 30th May, 2019
  6. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    I have been using CC BTs for many years now.
    Cash sitting in offset if nothing else.
     
  7. Arnel

    Arnel Well-Known Member

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    Thank you for your reply,

    Some companies like Humm or skycard offer “interest free” for clients for say 12 months. How the lender benefits is a certain percentage of the sale is allocated to them.

    Say I do a renovation $30k

    12 months Intrest free to client

    Of that $30k I might pay 1k for the service to the lender
     
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  8. Arnel

    Arnel Well-Known Member

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  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    3.5 % or so effective return..........id say a lender wont have a go at that.

    large unsecured facility, which carries risk, like that would return a lender 4 to 6 k, so 1 k wouldnt be very attractive.


    ta
    rolf
     
  10. Lindsay_W

    Lindsay_W Well-Known Member

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    I know a builder here in QLD that will lend $20K for renovations, interest free, via a company called Certegy Ezi-Pay (now named Humm - as mentioned above) closest I've seen to what you're asking, I'm sure this is factored into the builders costs, so clients are probably indirectly paying for that service even though technically 'interest free'
     
    Last edited: 31st May, 2019