Total Members: 156,241

pilihp

  • You can borrow up to 70% of the value of your current property on a NO Doc loan. You can use this money for any purpose also, so if you decide to live off some of it for a few months that's your decision. Not many people would do this because with no income and loan repayments to make you will loose your property to a mortgagee sale very quickly &…[Read more]

  • Hi Vanessa,From a lenders viewpoint, if you're buying an investment property they are ok with Interest Only. If buying an owner occupied, they would prefer Principal & Interest although they will allow Interest Only for a time – say 5 yrs max.If you get into borrowing bigtime, cash flow becomes critical & that's why a lot of investors prefer…[Read more]

  • pilihp replied to the topic when to refinance? in the forum Finance 15 years, 7 months ago

    Hi voigtstr,You can use the existing equity in two different ways to buy another property.The conventional way is to refinance the existing fixed rate loan to the maximum LVR ING or another lender will go to. Some lenders will allow you to borrow 100% in certain circumstances. ING being on the conservative side of lending may only let you go to…[Read more]

  • Hi Abbruzzi,Suggest you go to a local mortgage broker who will deal with a different area of St George & get you the result you are looking for at no additional cost to yourself.

  • Hi BinH,Trusts are extensively used for a variety of reasons. You need to get professional help from an Accountant or Solicitor that has the relevant experience if you are going to consider the benefits compared to the costs.

  • Hi winvin23,If you're looking for interest rates less than 7% ongoing you won't have much to look at. I know the Advantage Finance product (it's a wholesale lender called Challengers loan) & is worth considering. It does not have a 100% offset but who needs a 100% offset if you can pay extra into the loan, redraw any extra amount for no fee & see…[Read more]

  • Hi Rob,It's possible to borrow 100% on investment properties in certain circumstances. That leaves the legals etc to find. If you can't afford any expense you have to ask yourself the wisdom of investing in something that is likely to make financial demands on you.

  • Hi Istreet,Think yourself lucky you are only being charged 19% pa. The costs involved in establishing a new loan would outweigh any benefit of a cheaper interest rate on such a small amount.

  • Hi Liz,If you get stuck, try using Scenario on the Broker Resource website (http://www.thebrokerresource.com.au).

  • Hi J C,There are a few low doc lenders that don't insist on an ABN. You can call yourself a consultant, contractor etc and as long as you have a clear credit record, you will be able to borrow at normal rates for the product.As in the other posts, take care with loans that allow you to capitalise interest. They are in common useage & I suspect…[Read more]

  • Hi Martin,The banks get a  bashing at times because they deserve it. This is a classic case of not being able to serve two masters. If your bank lender's first priority is their job, they will try to keep the boss happy and follow bank policy to the letter. If you use a broker, they will try to keep the client's interest to the fore knowing that…[Read more]

  • pilihp replied to the topic How Equity Works in the forum Finance 15 years, 8 months ago

    Good Morning Breammaster,If you have enough equity in the first property, you don't need to use the second one as security just because you are buying it.You also need to consider your position in the future. You may have to use both as security with a view to getting one or the other released when you have sufficient equity in it.

  • Hi ShowBiz,I agree with the comments that your friend should get some advice from a Mortgage Broker. Most brokers will tell you exactly how much you can borrow in your present circumstances. If your friend does manage to borrow more than she would normally have by non disclosure some of the protection she would normally get by way of the consumer…[Read more]

  • Hi Watson01,Most low doc / no doc lenders will insist on an independant valuation. Most valuers will only value at what you are paying & the lenders will ignore a higher valuation if you manage to get one. You have to work out a way of getting the property into your name first, then lenders will give you credit for your buying skills.

  • Hi Rob,You don't need a job to get a loan if you have equity and are willing to use it.If you have a clear credit record, you can borrow up to 70% of value at normal bank rates on a No Doc loan. The rent will pay the loan or loans.If you have a lousy credit record you will pay higher interest rates and fees.Ring a mortgage broker in your area or…[Read more]

  • pilihp replied to the topic Becoming A Broker? in the forum Finance 15 years, 8 months ago

    Hi ScottyTav,Anyone you talk to is going to be biased one way or the other. having said that, I've been a broker for years and would not do anything else – I don't do it for the money, more the personal satisfaction I get from a service industry environment.Starting out you need to get experience & ideally work with others that know the ropes. You…[Read more]

  • Hi Purple,As you point out, there is not much difference in the monthly repayment between an Interest Only loan and a Principal & Interest one over 30 yrs. The tax deduction for interest paid will vary only slightly over time if you pay minimum repayments on the P & I loanThe lvr you borrow will be dictated by your circumstances. I can't think o…[Read more]

  • pilihp replied to the topic Interest Only Loans in the forum Finance 15 years, 8 months ago

    Hi Steddi,Most loans have interest calculated daily and charged monthly. If the loan is Interest Only then you are charged the interest rate multiplied by the principal outstanding divided by 365 for each day. If the principal remains the same for the month then you multiply the no of days in the month by the daily rate. If you have repaid…[Read more]

  • pilihp replied to the topic Second Mortgage in the forum No Subject 16 years ago

    If you are buying an IP you will normally have a deposit saved or use equity in your home for the deposit and borrow ideally no more than 80% against the value of the IP to avoid paying Lenders Mortgage Insurance.
    The type of loan product used is not as important as getting the basics right. Keep any borrowing for the IP separate from your own…[Read more]

  • pilihp replied to the topic I love grandma in the forum Help Needed! 16 years, 1 month ago

    Hi,
    The LMI issue is worth investigating – this is “dead” money paid to a bank to fund their insurance premium, not yours.
    The actual LMI premium charged depends on the LVR (loan to value) ratio, the insurance co used, whether you have 5% genuine savings and who the lender is (there are different rate scales for different lenders).
    The lower the…[Read more]

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