It all depends on your comfort level in how much debt you would like to handle, and if you can do more with the excess funds you have. Some people are fine with having a high LVR, while others see it as too much of a risk.

In regards to LMI, as it is an IP, LMI is tax deductible over 5 years, can be capitalised onto the loan, and interest charged…[Read more]

You can bet come nearer Christmas there will be a lot of focus on the rates, especially coming from the retail sector.

From your post I assume the PPOR and IP1 are cross collateralized, and the lender won't take above 80% due to the company title of the IP1.

Why don't you then refinance into 2 separate loans, one loan on 80% of the IP ($490K x 80% = 392K), the other on the PPOR of $810K ($610K existing PPOR + outstanding IP of $110K + $90K increase). It leaves an…[Read more]

Agree xdrew.There are people out there who see us brokers as a thorn in the side. The most common negative comment I hear are that we brokers only direct clients to the highest paying commission lenders, and therefore don't have their best interests at heart. It's only when you give them an insight of the benefits of using a broker, that they…[Read more]

sgoodes wrote:
I have no idea. They shift the goal posts to suit themselves these days. In one breath they are all good to incorporate difference between actual bank value against purchase price in regards to deposit to allow me buy a decent home knowing that I am no risk then next breath change everything. I have a perfect credit history,…[Read more]

What was the reason CBA have given in requiring 20% deposit?

Qlds007 wrote:
Thanks Firewater for the update. Yes there are now several lenders who would do this and some great interest rates around for such loans. Shame that Hank had to have me banned from his Company's forum guess they didn't like other Brokers telling it as it is. Cheers Yours in Finance

You're not the only one Richard. I was too…[Read more]

Paul,Also keep in mind depending on the amount of the purchase, you need to allow for stamp duty and other related costs such as conveyancing, building insurance, etc. FHOG can be offset against it, but it still needs to be accounted for.

Hi Lorraine, You should avoid cross collaterisation of your properties. The less control the lender has over your properties, the better, especially if your PPOR is involved in any way!If you can structure theses loans via cross collaterisation, you should be able to structure them as standalone loans. Even with LMI involved, it's a small price to…[Read more]

K, In terms of structuring, yep, most lenders will allow a max 90% LVR for cash out, so those amounts you have are correct if the valuations are right. You need to be aware that LMI will be charged with the increases though. Whether these charge can be capped onto their respective loan depends on your lenders policy.In accessing the equity, I…[Read more]

First off with the CBA loan, why did you have a standard variable rate product without a package? Unless the loan amount is really small, surely the package discount would offset the yearly fee? The standard variable rate is basically a recommended retail rate that hardly anyone pays.Moving on to the offset facility. In terms of the interest you…[Read more]

As per the two posts above, the goal should always be to pay your PPOR debt down rather than an IP debt.It could be taken one step further if you are thinking at converting your current PPOR into an IP down the track to even change that to an IO loan with 100% offset.

Best option would be to utilize it as an IO loan with 100% offset. Any excess funds can be distributed in the offset account. The reason for doing it this way rather than paying down the loan is that it allows greater control over your funds down the track, it's yours to do what you want with it without affecting the tax deductibility of the…[Read more]

Carbon tax must be hitting home already It's a pretty decent increase by Bankwest on living expenses. Homeside, despite using the same method is way lower on living expenses across the board. Combine this with the phasing out of their lo-doc product, in my opinion Bankwest can only lose customers to other lenders.

The issue with trying to get a loan before you move is the lender will ask whether there are any foreseeable changes in your circumstances that may affect repayments of the loan. Moving interstate, quitting your current job, and starting a new job would suggest the answer is yes to this question.Whether the lender will approve the loan (especially…[Read more]

As Jamie mentioned, it all depends on what your new job is and how it fits in with the lenders policies.As a worst case scenario, most lenders will accept you after 3 months at a new place of employment provided you have also completed your probationary period.

Same thing happened in May with NAB and Homeside who changed their living expenses to utilise the HEM method.Before that, living expenses on a married couple was very generous, was able to process a lot of deals through where it couldn't service elsewhere, and then it increased 25% overnight.