Forum Replies Created
Different lenders have different niche policies – and these are updated frequently.
Most brokers struggle to keep up with policy – so I wouldn’t expect consumers to know the ins and outs.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi and welcome aboard
Where are you looking to purchase?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
How much is the credit card default?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
There can be issues with getting finance.
If you need to borrow more than 80% – you might have issues with getting LMI to approve the loan.
Basically – if the valuation comes back and says that the property is in close proximity to powerlines – the bank may restrict the loan to 80% of the properties value.
It will effect future resale value too.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
You don’t neccesarily have to use different banks – but you should certainly keep the loans uncross collaterised.
Do to that – you simply set up two loans against your owner occ (one for owner occ purposes and the other for the deposit/costs on your investment(s)
So if you were purchasing one IP for instance – you’d have three loans set up:
PPOR
Loan 1: Current loan
Loan 2: Equity release for deposit/costs on IPIP
Loan 3: IP loanAll three loans can be with the one bank – or you could have loan 1 and 2 with one bank – and loan 3 with another.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Get Terry to sort it out – guy knows his stuff and distance shouldn’t be an issue.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Richard Taylor from this forum.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Peter
Welcome aboard.
Without your own savings to go towards the deposit/costs it might be possible to use a family guarantee.
The folks would have to put up their property as collateral for yours.
You’d still need to be able to demonstrate that you can service the debt.
Guarantees are generally for owner occ properties but some lenders are ok with them securing an investment.
With an investment – your borrowing capacity is likely to be higher due to the rental income it will receive.
Having said all that – I’m a bit old school and think it’s good practice to save for the first deposit/costs.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
what does this revaluation? Does the bank do it? Do we ask the bank to revaluation the property and see how much it increases?
Some banks allow you to order a valuation on your property without submitting an application.
If the property has gone up in value – you might be able to release some equity depending on the banks policy and your borrowing capacity.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Yep – pretty sure you need a diploma too now
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hiya
The cert IV itself won’t help you land a decent aggregator or good deals with lenders.
Aggregators are generally hungry for business so will take on anyone with the appropriate quals in place. Some will charge a fixed fee – others a commission split.
Lenders generally offer good deals to brokers who generate them a high volume business – something that usually takes years to build up to.
The most important factor is lining up a good mentor – it’s an industry requirement for at least the first two years.
I personally used AAMC back in the day – they were ok. Can’t complain.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Brockman
Without sounding biased – your best option is going to be to discuss your structure with a good broker. There’s plenty around here.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Chris
I can’t speak for those apartments in particular – but happy to speak about OTP in general.
The concern I have with OTP is that the developer expects you to unconditional on the purchase now – but the bank won’t approve finance for the property until it’s completed.
The risk with this approach is that if your financial and/or employment situation changes – or the property is valued at less than you paid for it, you could be at a risk of not getting finance approved and thereby losing your deposit.
The upside with OTP is that in some states there’s concessions for first home buyers (whether it be the first home buyers grant and/or a concessional rate of stamp duty). Locking in a property at a fixed price that isn’t due to be completed for some time can also be an attractive option for some buyers.
All in all – tread carefully with OTP. Do your research – and be reasonably certain that obtaining finance won’t be an issue for you.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Richard,Any good recommendations in newcastle?
Hi Greg
Can’t recommend one in Newcastle but in Sydney – Paul Gerrard from Price Financial is very good.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I’m with @buyersagent
I can’t speak directly about the company you’re referring to OP – I have no idea what they do or what they offer.
However – I do know that there are a lot of companies selling off the plan properties in QLD – and at times – they are sold for a large mark-up due to the layers of middlemen getting paid.
Do your research thoroughly before making any decisions.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
For an IP – I’d look to borrow the funds and claim the deduction.
For a PPOR – if you had the cash available it would make sense to use it rather than borrow more.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
that means get an appraisal every few years if you think the value of properties go up in your area?also does that mean not to go above 80% LVR so you don’t have to pay lender mortgage insurance (LMI)?
Hiya
I missed these questions from a while back – sorry.
It can’t hurt getting your properties valued every few years to see if there’s any equity that can be released to fund future deposits.
In terms of LMI – it’s not easy to get lenders to release equity above 80% of the properties value these days. However – there are some lenders that are still ok in this space.
Should you go into LMI territory? Possibly – it all depends on your longer term goals and tolerance to risk. I wrote a blog article about this a loooooong time ago. Have a read – http://passgo.com.au/blog/item/20-lenders-mortgage-insurance-lmi-a-good-or-bad-thing
The example used in the blog are a bit outdated since 95% investments lends are pretty much non existent these days. But the theory behind leveraging LMI (probably to 90% LVR) is still relevant.
Hope that helps.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Have you capped out with Nab, Choicelend, Liberty yet?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
@Jaime, I guess I’m just lucky, none of my PM’s are charging me this and to be honest I’d pull IP’s from any that did try to do this. I think the PM’s do just fine on the 5% weekly cut based on what they do for it.
I don’t mind paying it – I think it’s a reasonable cost for finding a tenant.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Biggest struggle for those starting out is funding that first deposit. After that – it becomes easier (assuming you buy well and the property appreciates in value).
Second to that – is over analysing which prevents some people from making decisions.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
