[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

August 2, 2014 - 1:20 am

You can transfer the interest payment from a transaction account on a LOC manually on a monthly basis when auto debits are not available.

Colin Rice | CDR Finance
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July 30, 2014 - 12:30 am

Cheers Jamie and Richard.

Colin Rice | CDR Finance
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July 29, 2014 - 2:08 am

magic32 wrote:

If so, would it be a good strategy to go fixed for one year to maximise the loan amount and then back to variable after that. Because fixed usually doesn’t come with an offset account, how do I know if there would be an offset account when it is reverted back to variable.

You can achieve the same result with variable, however as mentioned better ways to skin that cat.

Colin Rice | CDR Finance
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July 29, 2014 - 1:46 am

If you pay 10k in LMI and break it down as follows it seems less nasty;

$10,000 x 5% = $500/52 = $9.61/week in interest payments which is tax deductible.

So about $6/week out of pocket for the average wage earner.

• This reply was modified 9 years, 9 months ago by  Colin Rice.

Colin Rice | CDR Finance
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July 29, 2014 - 1:29 am

Will be accepted by some lenders accompanied with a letter from the employer stating the amount and purpose of allowance.

Colin Rice | CDR Finance
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July 29, 2014 - 1:25 am

Got one through at 80% with NAB today with maternity leave and letter from employer stating job available at duration of leave. Other applicant was in a long term PAYG employment.

Would be necessary for husband to be in PAYG contract employment to have a chance IMO.

Would be interested to hear the outcome (and lender) if you get it through at 90%.

Would be worth considering 88% LVR plus LMI to keep it below 90% in total.

Jamie, which lender approved at 90%?

Ta.

• This reply was modified 9 years, 9 months ago by  Colin Rice.

Colin Rice | CDR Finance
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July 29, 2014 - 1:12 am

1. Reasonable and quality does vary so go with a recommendation from someone who is “in the know”.

2. Broker that understands IP loan structures. Most on here will be able to assist.

3. Go with Richards recommendation.

I find many accountants are clueless in loan structures and often give the opposite advice required.
You will find some good advice in regards to your scenario on this forum if you do a search.

4. IP savvy Broker can do this on your behalf. Get a mail redirection in place so you don’t miss final utility bills etc.

Handy Aust Post link should help: http://auspost.com.au/parcels-mail/notify-organisations-of-your-new-address.html?ecid=sem-adl-ggl-nbr—par-bau–mrso-49607770&s_kwcid=AL!3788!3!38715515976!p!!g!!changing%20address&ef_id=U4LaTgAABNMCBlOA:20140728150954:s

5. As per Richards advice.

• This reply was modified 9 years, 9 months ago by  Colin Rice.

Colin Rice | CDR Finance
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May 29, 2014 - 12:52 am

http://www.brokernews.com.au/news/breaking-news/lmi-portability-already-a-reality-genworth-82912.aspx

The article seems vague and appears to be a bit of a filler with no substance. Good luck trying to get a refund.

Colin Rice | CDR Finance
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May 29, 2014 - 12:36 am

Most banks will not do another valuation for 3+ months from purchase. Some 6 months and some will use the same val for up to 12 months from my experience.

You could purchase via one bank and get a val from another but sounds like you will be in LMI territory so the costs of moving would not be worth the excersize.

• This reply was modified 9 years, 11 months ago by  Colin Rice.

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May 14, 2014 - 2:34 pm

Finance Broker wrote:

<div class=”d4p-bbt-quote-title”>Colin Rice wrote:</div>
AMP assessment rate is 7.5% where as the same loans will be calculated at actual rate via NAB calculator at actual repayments. For example 5% interest only payments which can and does make all the difference in many instances.

Yes that’s right but so will Macquarie.

Yep, the banks that allow that apply the same policy.

Colin Rice | CDR Finance
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May 14, 2014 - 12:21 pm

Finance Broker wrote:

AMP does take actual repayments into account.

Actual of other banks debt but debt with AMP is sensitised at 7.5% currently.

• This reply was modified 10 years ago by  Colin Rice. Reason: spelling

Colin Rice | CDR Finance
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May 13, 2014 - 11:43 pm

jcso99 wrote:

Hi Colin,

The net surplus should also minus the existing loan repayments right? Secondly, are you saying that with AMP, they will add a 3% buffer to the current variable rate to calculate serviceability? Cheers John

Yep that’s correct.

AMP assessment rate is 7.5% where as the same loans will be calculated at actual rate via NAB calculator at actual repayments. For example 5% interest only payments which can and does make all the difference in many instances.

To clarify I’m not recommending NAB as other banks have the same policy it is just an example and may or may not be the best for for your situation without knowing the full picture and future goals etc.

Colin Rice | CDR Finance
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May 13, 2014 - 11:11 pm

Hi jcso99,

Serviceability will comprise of rental income plus any other income usually from salary or business income.

Rental income plus salary/business income minus living expenses, tax, credit cards (2.5 -3% of limit), car repayments, personal loans, child maintenance etc will leave you with a net surplus.

If the net surplus is less than what the calculator requires to service the requested loan amount in the bank calculator (usually actual rate plus 1.5 – 3% buffer) then the deal wont service.

Has your broker looked at other lenders such as NAB/HSL that will service at actual repayments with out adding a buffer?

Colin Rice | CDR Finance
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May 12, 2014 - 10:55 pm

Credit file available form http://www.mycreditfile.com.au

Free version is available with a 5-10 day turnaround time or a paid version is available within 24 hours.

Colin Rice | CDR Finance
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May 12, 2014 - 10:49 pm

1. He probably didn’t realise CNY and RMB are the sane as most banks refer to it as CNY? Yes there are other options available but further research would be required to determine who else will go to 90% LVR beside St George.

2. Max exposure is the limit of $ they will lend to you. The trust is a vehicle and you are the driver. Banks look who the driver is not the vehicle.

AMP have a very generous calculator so from an acquisition perspective are better left to the end of the cycle rather than the beginning.

Not sure if you are a DIY but feel to say that Mortgage Brokers can be compared to mechanics. If you get a dud you don’t crack open the manual and have a crack yourself, you find a better more skilled mechanic.

Colin Rice | CDR Finance
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May 12, 2014 - 7:50 pm

May I ask who the lender is you approached?

Also the value of the unpaid default?

Is the 25k being used to pay costs such as stamp duty and settlement costs as well as the deposit?

Thanks.

Colin Rice | CDR Finance
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May 12, 2014 - 7:21 pm

They look fine to me.

With the email tag it may not work in other formats other than outlook as it didn’t work in mine?

My host is google mail as in gmail BTW and may not work in other popular free emails such as hotmail etc.

Colin Rice | CDR Finance
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May 12, 2014 - 7:06 pm

Also noticed the email hyperlink does not work, or is it because I’m using Google Apps for Business ;)

Colin Rice | CDR Finance
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May 12, 2014 - 12:34 am

Apologies CBA will only accommodate ex pats working overseas not non citizens of Australia.

Colin Rice | CDR Finance
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May 11, 2014 - 10:33 pm

Your welcome. Im guessing St George or CBA?

Colin Rice | CDR Finance
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