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How Long and How Much - (Solicitor's Funds)
Fees
Like most lenders we have to pay government transaction taxes (0.0006% of the
loan advance), titles office fees ($65.00 per dealing - which includes GST),
stamp duty - if applicable (stamp duty if re-financing a business loan is no
longer payable) together with the usual valuation (usually at 1/3 of scale),
establishment (usually between 0.5% and 1% of the loan advance) and scale legal
fees all of which are listed in a written quotation provide upon request -
just fax or email the Loan Inquiry Form for a full written indicative offer/quotation
which includes: confirmation of amount, rate and term, applicable fees, application
forms and a procedure page outlining steps to settlement.
* Please note GST applies to all legal, valuation, brokerage and Government fees
Up-front Fees
Establishment fees are only paid if the loan settles and the
only fees required prior to settlement is a loan application/approval
fee (required with the application but fully refunded if the
loan is not approved - these vary depending upon the lender
and amount intended to be borrowed) and some monies paid to
the investor's solicitor to cover the cost of valuating your
security property and part legal costs - all other costs are
deducted at settlement - a full listing of which is sent with
mortgage documents to your solicitor for checking.
Approval procedure
As long as you do not want an advance that exceeds the Law Institute
limit of 2/3rds of valuation your 1st mortgage loan is already
approved! As the loans are security based and not serviceability,
suitability or credibility based (like banks & building
societies) there are no tests to pass - we just need to make
sure of the properties worth, check the title and make sure
you have adequate fire insurance - that's it! Please note however
that we cannot advance monies to undischarged bankrupts.
How Long?
Approvals are often same day as there are no tests or analysis
to be undertaken and whilst loans can be settled in as little
as five (5) days the usual timing is:
First week - application, approval & valuation,
Second week - title searches, mortgage documentation,
Third or fourth week - settlement.
Documentation
Private lenders use their states standard Law Institute mortgage
documentation as used by banks and building societies etc.
and these are always sent to your solicitor for checking prior
to you signing.
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