Prosperity, Wealth, Freedom <2% P&I loans.. too good to be true?

Discussion in 'Loans & Mortgage Brokers' started by DCO90, 20th Jun, 2018.

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  1. DCO90

    DCO90 Well-Known Member

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    Just had a meeting with a 'Mortgage Reduction Consultant' from PWF (Prosperity, Wealth, Freedom) after my father-in-law mentioned they offered really low 'wholesale' interest rates. They are located in Toowong, QLD.

    Apparently they cold called him and he's signed up to their mortgage reduction program, he seems to be happy and says it's saving him money. He's not the savviest person when it comes to finances, so I was skeptical... but it peaked my interested, so I booked a free consultation, to see what they could offer...

    After going through my finances and properties with her (2+ hours). She asked if I'd like to book a $199 appointment where they come up with a plan to help me restructure my investments and PPOR. She said her company gets wholesale loans from Advantege (Home) and that she can get investment loans as low as 2.2% P.A... Yea. 2.2%!

    $199 is really nothing to lose with a claim that bold.... so I agreed to the meeting... paid in advance...

    2.2% p.a is WAYYYYY too good to be true? What am I missing here? What's the catch? Has anyone had experience in this area?

    **title should read <3%**
     
    Last edited: 20th Jun, 2018
    DCO90, 20th Jun, 2018
    #1
  2. GreyGoat

    GreyGoat Member

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    wowee certainly would catch you’re attention!

    Anything to help pay the home off faster!

    Keen to know how you go at your ‘appointment’
     
    GreyGoat, 20th Jun, 2018
    #2
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  3. thatbum

    thatbum Well-Known Member

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    Is this one of those things where they lower the rates on the PPOR loan and jack up the IP loan rates?

    Which seems like it would have tax avoidance risks...
     
    thatbum, 20th Jun, 2018
    #3
  4. Heinz57

    Heinz57 Well-Known Member

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    People cold calling about money always worries me. Any company with “wealth” in the title...nope.
     
    Heinz57, 20th Jun, 2018
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  5. hobartchic

    hobartchic Well-Known Member

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    Who holds your title if you go with them?
     
    hobartchic, 20th Jun, 2018
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  6. hobartchic

    hobartchic Well-Known Member

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    Why didn't you look at your father in law's contract? Actually, why don't you look at it? There's going to be the answer to questions there. I would tread carefully.
     
    hobartchic, 20th Jun, 2018
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  7. hobartchic

    hobartchic Well-Known Member

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    Are the listed with ASIC? AFSL number?
     
    Last edited: 20th Jun, 2018
    hobartchic, 20th Jun, 2018
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  8. Trainee

    Trainee Well-Known Member

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    Sounds weird. Advantedge is a NAB sub? If they offered 2.2% loans brokers would jump at it. Why would they waste 2 hours with you?
     
    Trainee, 20th Jun, 2018
    #8
  9. GreyGoat

    GreyGoat Member

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    Yes I do recall having a conversation with someone selling this set up.
     
    GreyGoat, 20th Jun, 2018
    #9
  10. Trainee

    Trainee Well-Known Member

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    The website, clean, spic, spruiky.
     
    Trainee, 20th Jun, 2018
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  11. Jamesaurus

    Jamesaurus Well-Known Member

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    Sounds like this. Please update us how you go and if they have some legal way of knocking 1.5% of my mortgage that doesn't affect my other loans though!
     
    Jamesaurus, 20th Jun, 2018
    #11
  12. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I believe that was cleared for not tax avoidance in that instance where home loan was 2% and IP was 6% because it was not an unreasonable rate for an IP (there are lenders that have them at this rate) and it was only for 2 years.
     
    Westminster, 20th Jun, 2018
    #12
  13. hobartchic

    hobartchic Well-Known Member

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    No ABN, No Financial licence numbers on website. Not a good look. I can not find their ABN either on ABN look up.
     
    hobartchic, 20th Jun, 2018
    #13
  14. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Avdantedge doesnt market that product....... the broker consultant, may have access to the Loan Reducer thing, but its like me saying look, Im an aluminum broker with CBA and we have access to rates as low as x

    The reducer product does have an ATO ruling, it can be a good thing in some instances, but in general, we have found we can work better client outcomes overall with mainstream lenders.

    ta
    rolf
     
    Rolf Latham, 20th Jun, 2018
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  15. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    it has an acceptable ruling .............

    so that tells u a lot about how effective it may be for the average person :)

    ta
    rolf
     
    Rolf Latham, 20th Jun, 2018
    #15
  16. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Ummm

    coz nab cant buy your money at 2.2 :)

    ta

    rolf
     
    Rolf Latham, 20th Jun, 2018
    #16
  17. Athikalaka

    Athikalaka Well-Known Member

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    Athikalaka, 20th Jun, 2018
    #17
  18. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Rolf Latham, 20th Jun, 2018
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  19. Athikalaka

    Athikalaka Well-Known Member

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    Speaking of white label loans, I have a few of them tied to reputable banks, incl Big 4.
    Can it be looked at like looking at home-branded products in supermarkets? Same thing just a different brand? Where/when does the analogy fall short (usually)?

    I know that not all features are like for like as one of my cards is eftpos with no debit (international) capability.

    Do serviceability or drawing more equity out with white labels become harder?
     
    Athikalaka, 20th Jun, 2018
    #19
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