The Mortgage Pool
It seems everywhere you look nowadays banks are trying to to lend you money at low interest rates. However if you’ve ever actually tried to borrow money without an PAYE employment record you’ll know how difficult it is.
The Problem
The Solution
The Solution
Provide a simplified mechanism where these two people can safely and efficiently get their needs met – The Mortgage Pool.
Interest Only Loans
Lend or Borrow amounts from $50,000-$5,000,000
Interest Rates from 5% to 9% as per chart below.
Interest on Commercial & Industrial is Pre-Paid at the commencement of the loan.
LVR
30%
40%
50%
60%
70%
RESIDENTIAL
5.0%
5.5%
6.0%
6.5%
7.0%
COMMERCIAL/INDUSTRIAL
7.0%
7.5%
8.0%
8.5%
9.0%
Lender Advantages
High Interest
Though the mortgage pool you can be the bank and get many times the interest return than say fixed deposits. Interest returns range from 5% to 9%
Low Risk
The usual risk of lending money is assessed by the LVR (Loan to Value Ratio). Because these mortgages do not exceed 70% there is minimal risk
Immediate Returns
These short-term interest-only mortgages attract an upfront payment of interest. This means you can get further interest on your return
Borrower Advantages
Interest Only
Because you are borrowing on an Interest Only basis your repayment is much lower and, if applicable, fully tax deductible.
One Payment
In most cases the interest is pre-paid and added on to the loan so you can manage your cashflow for the coming year with no further loan repayments.
Quick & Hassle Free
Whilst you still need to show evidence of income the lenders are not as tediously fastidious and normal lending institution like banks.
How it Works
Below is a basic illustration of how the Mortgage Pool works for Borrowers and Lenders
Register
Any BBIC member can register to borrow or lend money. If you are not already a member you can join at bismarkbrokers.com/login
Borrower Requirements
Borrowers specify the loan amount they require and the property details and estimated value.
Lender Preferences
Lenders indicate what type of property, what LVR range and Loan Amount range they are prepared to lend.
Matching
BBIC cross-reference buyer and lender requirements until a match is achieved and each party agree in principal to the loan. The Lender lodges the amount into BBIC trust account.
Valuation
A valuation of the property is done (paid by the Borrower). If the valuation does not reach the Borrowers estimate the Lender can withdraw or adjust the loan amount.
Mortgage
When all details have been agreed to then the Solicitor will prepare the first mortgage. Both parties sign and the funds are allocated as directed by the parties.