St george eelease equity difficulties

Discussion in 'Loans & Mortgage Brokers' started by andy ngo, 25th Sep, 2019.

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  1. andy ngo

    andy ngo Well-Known Member

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    Hello

    so I have a new valuation from HTW for refinancing with St george.

    The valuation is 870k and the debt is $575k. I have 870k * 80% = 121K equity.

    The issue is my broker has advised that it is not easy to get the equity out to buy another invesment property as Stgeorge is very strict on that.

    St george may not accept to release equity for us to buy an IP

    has one been in the same situation ? can you share your experiences?

    thank you
     
  2. Lindsay_W

    Lindsay_W Well-Known Member

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    They can likely do it but will want to see a COS for the new investment property you're going to purchase. They are unlikely to just release the money as available funds to you. Alternative is refinance to another lender, who isn't as strict on cash out rules, and get the equity released at the same time.
    Any reason you NEED to stay with St George?
     
    Last edited: 25th Sep, 2019
  3. Morgs

    Morgs Well-Known Member Business Member

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    Release of funds can be done depending on strength of application & evidence of the IP purchase application/preapproval. Will need to go to senior credit.
     
  4. Archaon

    Archaon Well-Known Member

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    If you don't service with the currently lender for the total loan amount, then they can knock it on the head.

    Investing in shares could be a way to extract equity, you may choose to change your mind after the equity is released though.

    LOC or line of credit might be another option.

    Hopefully your broker can find a way.
     
  5. Pash81

    Pash81 Well-Known Member

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    Whats the issue with St. George not releasing the equity?
     
  6. Pash81

    Pash81 Well-Known Member

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    What proof will STG need for this?
     
  7. Lindsay_W

    Lindsay_W Well-Known Member

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    Usually a letter from Financial Planner detailing the share investment strategy, not ideal.
    Better off refinancing to another lender and releasing equity unless there's a specific reason to stay with St George.
     
  8. Archaon

    Archaon Well-Known Member

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    Your broker might know, or you can ask someone at the bank, a letter from an accountant that you're considering investing in shares might be enough.
    Getting a letter of advise from a Financial Planner might be overkill as it will cost you about $1600ish from memory.
     
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  9. Lindsay_W

    Lindsay_W Well-Known Member

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    Pretty sure they require Financial Planner letter now, happy to be wrong on that.
     
  10. Archaon

    Archaon Well-Known Member

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    Maybe, 12 months ago it was acceptable.
     
  11. andy ngo

    andy ngo Well-Known Member

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    ok it sounds St george is tough......any other lenders which is good for equity release? thank you
     
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  12. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Any accountant should refuse to write such a letter. It would imply the accountant gave the clients financial advice.
     
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  13. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Macquarie.
     
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  14. Archaon

    Archaon Well-Known Member

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    But it's the client coming to the accountant expressing they want to invest in shares?
     
  15. Lindsay_W

    Lindsay_W Well-Known Member

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    I second this
     
  16. andy ngo

    andy ngo Well-Known Member

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    THANKS @Terry_w . are they good? do you know what their rate is now?
     
  17. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Irrelevant. How can an accountant write such as letter? They would be breaching a few laws and not covered by their insurance.
     
  18. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    yes and yes
     
  19. Morgs

    Morgs Well-Known Member Business Member

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    Most lenders really.... but depends on amount and purpose as to who you'd use.

    Why was St George the choice in the first place?
     
  20. Pash81

    Pash81 Well-Known Member

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    I had an ANZ loan settled 3 weeks ago, got $31k equity released as cash without any questions asked. They posted a bank cheque.

    When I was talking to the STG lender, she didn't mention anything about equity release (she definitely knew that the loan amounts I'm asking are way over my current loan balances).

    The broker through whom I've submitted the STG applications also didn't mention anything about any problems with equity release as he also very well know my current balances and the new loan amounts requested.

    Not sure if I'm missing anything here...