Using Precious Metal (mainly Silver) as collateral for a home loan

^ I know my credit union does. Remember most credit unions actually "bank" with one of the big 4. My credit union for example banks with NAB.

Gotta love mortgagee insurance. The bank makes YOU pay for taking out insurance for the bank. And I wonder who underwrites those insurance policies anyways? Its just like the derivatives market on a more formal scale.

As for using silver as collateral, I doubt it. The only way I'd see it would be if the bank took physical possession of your metals.

After all, the banks want you to hold illiquid assets so you cant take out a loan and run off with your collateral and the loan !
 
We had one Depository client who wanted to do something like this (but we are talking a million or so in metal) and in the end the only way it could work was for the bank to open a Depository account and the client transferred his metal in to the banks account and he entered into an agreement with the bank for the bank to return the metal to him. This was the private bank part however.

I can't see a bank going to all that trouble for a small amount.
 
Guys and Girls. Mystery solved. Got the approval from Bank today. It can be done. :)
A0123.jpg
 
Cinvalo said:
Guys and Girls. Mystery solved. Got the approval from Bank today. It can be done. :)
http://www.cinvalo.com.au/A0123.jpg
Click to expand...
So tell us what they looked at your silver as ...savings ?

You told us it was to be used for collateral . is this what they done ? do they want to hold the metals ? want you to sign anything saying you cant sell the metals . what ?

just because they gave you the loan doesnt mean anything. Your other assets & income might have been sufficient to acquire the loan .
 
$2,200 per month for 30 years = $792,000 total at the end of the term.

No wonder house prices HAVE to go up, thats $417,449 in interest on a $374,551 loan.
 
Matthew 26:14 said:
$2,200 per month for 30 years = $792,000 total at the end of the term.

No wonder house prices HAVE to go up, thats $417,449 in interest on a $374,551 loan.
Click to expand...


Houses prices always go up. You can never lose on real estate. :P
 
renovator said:
Cinvalo said:
Guys and Girls. Mystery solved. Got the approval from Bank today. It can be done. :)
http://www.cinvalo.com.au/A0123.jpg
Click to expand...
So tell us what they looked at your silver as ...savings ?

You told us it was to be used for collateral . is this what they done ? do they want to hold the metals ? want you to sign anything saying you cant sell the metals . what ?

just because they gave you the loan doesn't mean anything. Your other assets & income might have been sufficient to acquire the loan .
Click to expand...

Sorry i shouldn't use the word collateral because they do not hold my metals. The one that i got is a pre-approval and that is what i need in my case.
My concern is that i do not hold the down payment in cash. But i hold it in PM. So i want to know in my case can i get a pre-approval.
I need this pre-approval so that i have the right but not obligation to take out this loan if i really want to.
So what i did is that i have to prove it to them i have this amount of PM. So i show them the receipts. Take some photos etc

But the main point is not even this.
-Your job and credit rating are important because they want to lend it to people who they can get their investment back.(interest of the loan)
-They want to know you can make them more money (Remember Banks want to lend you money if you speak their language ,and if you can tell them the story from a banker's eye, They will lend you money)
Trust me on the second point. I had a section in my book writing about how Bank makes money . The more loan they make,the greater the loan is and the faster they make the loans, the more profits they made.

That was all my experience on getting loan so far. So for my situation i will not sell my metals, i trade it with my parent for down payment.
 
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