St george eelease equity difficulties

Does the pricing of loans depend on the total loan amount or does it also depend on the loan splits etc?

 

That is exactly what we do. Our PI insurer has a specific policy that says DONT. The client then asks for one from the FPs. Refuse that too as they are not asked to give financial advice on what to buy and the income or growth prospects. And often they want a letter that says shares when they tell us they want another IP. That would be a lie.

Obtaining a sophisticated investor letter is even harder. Our accountants PI insurer says not to.

This is why lenders have tougher rules. They have seen and learned.

 

Why is this even an issue. Sophisticated investor is standard test. As someone who has prepared their tax returns the income test is a yes/no answer. I cant understand the insurers concern.

 

I'm currently going through the equity release process through STG. Will report back once anything is finalised

 

My experience so far is quite different from this

 

can you provide more details?

 

So finally got a message from the broker that the loans are approved after almost 4 weeks of application.

I will be cashing out approx $200k equity from 3 properties. The bank asked the reason for this and I just said that I want to invest. Bank came back and wanted the exact breakdown of this amount. The broker just suggested to breakdown the amount for shares, super and some renovations. So I prepared a spread sheet with some individual asx share codes ($120k, super contributions $50k and $30k renovations), sent it to the bank but they came back and asked for a letter from a financial planner.

At this stage I told them that I'm a CPA myself . (which I actually am but have never done tax work, so not a registered tax agent, don't have public practice lisence or don't have a financial planning license.)

Bank came back and asked for a signed letter that I manage my own investment plan, with the details of breakdown along with a copy of my CPA certificate. Sent everything to them and the loans finally approved.

But what the bank have done is that they will charge me investment rates for $170k and OO rate for $30k (which I told them I'll spend on renovations). My broker didn't tell me this before I gave them the breakdown. Otherwise I would have bumped the renovation amount and also would have said that I'm planning to buy a 50k car to get cheaper OO rates.

 

Hi pash

Thanks for sharing your story and sorry to hear that. That is actually a leason for us!

Jusr wonder does Stgeorge release equity to your bank when the loan approve?

My broker told me that they only release equity after I signed the contract with new investment property!!!.

The dangerous thing is if they dont release equity i may lose the deposit and force to cancel the contract which is worse!!

 

In certain instances you can get the equity released, but it'll need to be signed off by senior credit.

 

I think the bank will just release the money into my bank account.

 

How much do we have to pay for that"? Where can i find senior credit"? Thank you

 

Your broker will need to discuss with them directly

 

I've also got STG to do few different loan splits, each with an offset account linked as well, just in case i do want to invest money.

 

STG have a $100 settlement fee. Can someone please confirm that weather this $100 is per property or per loan split? If I have 10 loan splits against 3 properties, do I have to pay $1000 in settlement fees or $300?

Thanks

 

Anyone?

 

Your broker?