Forum Replies Created
Hi P.P,
Forget about the cheapest rate; the cheapest rate isn’t necessarily the best product,
Concentrate on getting the best product that will match your current circumstances and not hinder your future investment plans, this will probably save you a lot more in the long term.Matching the correct lender to your individual requirements will depend on certain information, which includes the following but not limited to:
What LVR (loan to value ratio) do you require.
Loan amount required?
Loan term required? 1,2,3, or more years (if short term break costs need to be taken into consideration)
Loan purpose? Construction, subdivision, refinance, investment, owner occupied. Debt consolidation?
Do you have an ABN? If so for how long? (Some lenders require an ABN for 2 years, others do not)
Is the property residential, rural, commercial etc.
Post code? (Some lenders & mortgage insurers will not lend in certain post codes)
Is it in a Company or Trust name?Hope this helps, Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
If you have no funds/equity to put into the deal then try another 100% lender.
Watch out for deferred establishment fees, especially if you’re looking at short term lending. i.e. 1 to 3 years. Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Keep in mind St George will not take into account any rental income with servicing/borrowing capacity on their 100% loan for investors.
Also the required Net $175.000 is in saleable assets less current liabilities. Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Originally posted by Dazzling:Steve / PK,
I have read quite a bit on the forums about the dangers of X coll, and believe me, we are X coll’d up the Wazoo, but so far we haven’t been restricted or come across any nasty restrictions that is inhibiting our future investment borrowing.
What nasty things can actually happen if your finances are tied together like a ball of string ?? Tenants are A1, long term and paying the lot and we intend to keep everything long term…..with that situation, where is our weak link ??
Cheers.
Daz, I’m hoping that P.K will reply with a first hand more detailed account of her experience with X-Coll,
I don’t know her exact details but I suspect it went somthing along the lines of the following.The negative aspect of X-Coll usually becomes apparent when you need to access available equity in order to move forward and receive the disheartening news from your friendly and up until recently obliging lender “we regret to inform you that your recent loan application has been declinedâ€
Unfortunately Its not your perception of how much debt you can service it’s the Lenders assessment, and there reasons for decline could be as varied as, changes to our lending policy, you are to rent reliant, you are to highly geared, we don’t like your shirt, the point is there reasoning is irrelevant.
Its usually at this stage when disappointment turns to frustration when you realize in order to release a mere $30.000 (insert amount here) in equity from 1 property in the entire portfolio, you may be required to refinance 3 or 4 (insert number here) properties across to another lender, extremely time consuming & possibly expensive and in most cases could have been avoided.
Also, It is still possible to have multiple or an entire portfolio with the One lending institution and not have them X-Coll. Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Multiple loan fees & set up costs etc on separate loans doesn’t carry much weight in support of X-Coll.
In today’s current climate with so many lending institutions offering nil application fees and in a lot of cases no ongoing fees there is (usually) absolutely no need for X-Coll.
And for those who have expensive pro packages the above should be food for thought.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Thanks for sharing your exspereince with the dark side of X-Coll PK,
Unfortunately your experience/misfortune is not uncommon.As I have mentioned before and will say it again, the perils of X-Coll may not be apparent until it’s too late.
Prevention is so much easier than the cure.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Yes Todd that is the preferred option,
If you have equity then you can effectively borrow 100% plus closing costs without incurring LMI,This being the case I would suggest separate loans to avoid X-Coll
E.g.,
Loan 1 @ 20% plus closing costs i.e. stamp duty etc, secured against current property.
Loan 2 @ 80% secured against new purchase.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Yes there are lending institutions that will lend 100% and 107%, although the LMI is quite high on these types of loans.
Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
How much you borrow will depend on the LVR (loan to value ratio) e.g., 100% 95% or 80% etc
Here are the figures based on a $200.000 Investment purchase in NSW
Borrowing @ 80% LVR with a 20% depositPurchase price: $200.000
Loan @ 80% LVR: $160.000
20% deposit: $40.000Transfer Stamp Duty: $5.490
Mortgage Stamp Duty: $581
Mortgage registration: $78
Land transfer registration: $78Your Total contribution: $46.227
This total does not take into account legal and building and pest inspection fees.
Keep in mind Stamp Duty will vary between States, and LMI (lenders mortgage insurance) will apply if you borrow more than 80% LVR. Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Originally posted by andymitchell:yes – thats why I’m probably forced to stick with current lender – my banker said they wouldnt need a new valuation if I changed products…so I may have no choice…though I need to decide which of their products I would choose if I did change. I do think rates are on the up, maybe just 0.5% over the next 18 months, and from the valuation of the unit, we would be renting for at least 3 years to get any sort of value back, so thats why I’m thinking fix for 3? I/O?
Andy,
I assumed that was the case, looks like you’re stuck with getting the best deal possible from your current lender,Fixed, variable or a portion of both?.. after all is said and done only you will make and live with that decision,
Good luck with what ever you decide to do. Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Give Richard, AKA Qlds007 a call,
He brokers finance in the U.S. sleeps irregular hours US time and is a regular forum contributor.Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Best to make the offer subject to a satisfactory building & pest inspection,
The lending institution/bank will carry out a valuation, a finance clause in the contract is also a good idea. Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
You don’t have to crosscolaterise your portfolio to borrow 100%.
Accessing the equity in stand alone loans will still allow you to borrow 100%, unfortunately quite a few lending institutions fail to mention this and encourage cross colaterisation.Why is X-coll a bad idea?
Lets assume you need to access equity in 1, 2, 3 or all your properties, in order to fund the deposit and closing cost on a new purchase, but unfortunately you have hit your serviceability limit (max borrowing capacity) with your lender and all properties are x-colled,Solution: refinance part or entire portfolio,and de X-coll ….Expensive and messy, and unfortunately happens a lot.
Prevention is easier than the cure. Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Everyone’s situation is different,
It would be better to post the details (within reason) of your current structure and future plans on the forum for comment.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Originally posted by andymitchell:Hi all – well, from discussions with several agents, the value of our unit is now well below our mortgage amount, variable rate?
Be careful here, not sure if you are considering alternative lenders or not, but if the statement above is correct then I would think twice before doing anything that may require a valuation.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Bobby,
Valuers will look at comparable sales in your area, Contact a few Estate Agents and ask for a list of recent sale figures, if they are inline with your estimated property value then present these figures to the bank and ask for a revaluation.If the bank play hard ball contact a Mortgage Broker and take your business elsewhere,
A competent Mortgage Broker will probably get you a better deal than you currently have anyway, Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
I agree, keep the 2 loans separate, don’t cross collateralise.
Depending on the numbers, current value purchase price etc, it may be more economical for you to have the LMI on just the One loan,
E.g., 1st loan @ 89% LVR & the 2nd loan @ 80% LVRRegards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Your right Andy, Just spoke with the OSR, duty is applicable when transferring title under Two spouse names to One spouse name.
However, Duty is not applicable when transferring name on PPR title from One Spouse to both Spouse names,
Sorry this doesn’t help with your current situation but I thought it might be helpful info for others. Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Andy,
I inquired about this quite a while ago on behalf of a client, sorry but I don’t remember which State, but from memory no stamp duty is incurred between spouse on a PPR, I think it falls under the (love & affection) policy.Good luck & I hope everything works out for you, Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Originally posted by proper property:AMP will now accept lo doc loans in company names most other lenders only do it in personal names. there rate is 7.06
Incorrect, most lending institutions will lend to Company/Trusts on low doc products, including Rams.
BTW, LMI is applicable over 60% LVR with that particular AMP low doc product @ 7.06% Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
