Lenders easy on cashout

Discussion in 'Loans & Mortgage Brokers' started by Xsi, 30th Sep, 2016.

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  1. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    18th Jun, 2015
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    Location:
    Perth WA + Buderim Qld
    I think the banks saying no to this type of debt consolidation is quite new - however the fact that they're right in doing so is not. :)
     
    Jess Peletier, 13th Sep, 2017
    #41
  2. albanga

    albanga Well-Known Member

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    19th Jun, 2015
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    Melbourne
    Agreed. Cashing out and paying 15k more over 30 years for $300+ monthly cashflow may infact be the responsible thing to do! Leaving someone paying hefty monthly repayments instead of significantly increasing cashflow could be the thing that causes someone to default?

    And let's take it another step forward. Is it responsible to give someone a 30 year loan if they have significant income and monthly surplus? Why aren't assessor saying "you could pay this off in 15 years instead of 30" so responsible lending says you must have a shorter term to drastically decrease your interest paid.

    I know that's a bit more far fetched but same kind of principle. The assessor said no because long term it's a higher cost.
     
    albanga, 13th Sep, 2017
    #42
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    14th Jun, 2015
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    Gold Coast (Australia Wide)
    That assessor doesnt like the deal.

    The excuse provided is just that.

    ta
    rolf
     
    Rolf Latham, 13th Sep, 2017
    #43
    tobe and albanga like this.
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