At 5 Units it is more than likely to be considered as a Commercial lend as you have suggested with a maximum lvr of circa 70%.Lenders will only lend against current value (assuming you are purchasing an existing block of unit) or a combination of cost  / end value if you are buying land and constructing.Either way your own Statement of Position…[Read more]

Hi MichaelThe No part was relating to some case law Terry posted up recently and my Accountant was discussing with me where one party had been used merely to support serviceability. The ATO had argued that without their income the loan would have not gone ahead and therefore want the income / expenses apportioned accordingly.As i say i didnt read…[Read more]

I will let Terry list the past case law but simple answer is Yes and No lolCheersYours in Finance

Hi GhorvathOk no unfortunately Westpac are not one of those lenders which allow you to order upfront valuations.No real difference between an equity loan and an a LOC other than cost.One is a revolving facility and the other is a Term loan. You could get the same end result with an equity loan however some lenders are not too keen on offering an…[Read more]

Whilst certainly they may be good in finding you a suitable property their recommend loan structures are totally wrong.They normally recommend a single umbrella style loan with St George with all of the loans and properties cross collateralised.This can severally limit a clients ability to move forward.I have dozens of forum clients who have been…[Read more]

Hi GhorvathFirstle welcome to the forum and I hope you enjoy your time with us.As Jamie has mentioned an interest equity loan would probably be preferable to an LOC as it will be cheaper for you (subject to who your current PPOR loan is with).The way we structure most forum clients investment loans is to work backwards.Assume you wish to purchase…[Read more]

Hi CoxyAs Jamie has mentioned subject valuation you have a wee bit of equity up your sleeve so ideally you would tap into this to access the deposit.In saying this in order to avoid cross collateralising the 2 loans you need to structure them correctly.Subject to with whom the current PPOR loan is with will determine whether your Broker can…[Read more]

Hi JakeYou mention you are waiting to hear from your lender this week whether your application has been successful.I hope for your sake it is and that you have told your lender you want to go IO with 100% offset.Reason being at a 95% lvr any variation to the loan will require another credit search and too many of these will fry your credit…[Read more]

Andy funy hs the finance market has changed.This day and age casual income is not a problem subject to regularity yet no chance on a Scholarship.CheersYours in Finance

BMW hate to say that is not quite correct.Quiet a few lenders will go to 4 units on a single Title to 90% lvr.Yes Anz certainly have some good points and in fact i really like the Breakfree package but for an investor the behind the scenes credit policy is probably more important than the upfront rate etc.CheersYours in Finance

Unknown admirer Jamie lolCheersYours in Finance

As Jac has very kindly said said most applications these days are lodged electronically so distance is not a problem.I have a couple of forum clients I am dealing with from Abu Dhabi and 1 in Finland at the moment. All 3 are buying in Melbourne.CheersYours in Finance

Hi boneyI hate to say 6 days is a long time in finance let alone 6 months.If the loan requires LMI then be prepared for a lot of questions and documentation.If you have equity in both your PPOR and existing IP then you certainly shouldnt be cross collateralising the two loans or going back to the same lender and getting them to provide you with…[Read more]

Hi JamieNo you are not wrong it cant be done on a residential deal.Funding is based on a cost basis only.CheersYours in Finance

Even now Wesuck will probably find it hard to grasp the DFT concept.You have to understand that lending to Trust structures forms a very small part of a lenders overall loan book so like if it is too hard the easy answer is No we dont do it or Yes we do it but the rate is XYZ above our standard rate or the applic fee is now ABC.CheersYours in Finance

Hi JessWelcome to the forum and I hope you enjoy your time with us.As i am about to jump on a plane and head inter state i will keep the response fairly short.In essence you wouldnt qualify for a loan on a scholarship and whilst you might not be paying anything to your parents for living at home lenders will factor in both a board payment and a…[Read more]

Yes i agree finance is fairly limited but certainly doable.In the main as has been said minimum loan $50K (varies from State to State) and maximum lvr 75% lvr.We have got of lenders now on board at around 4.65% fixed but obviosuly these rates vary each day.We have fininancing clients into the US for some 10 years although the introduction of NCCP…[Read more]

Hi LampYes hundreds of Forum clients in Vic and will in fact be down there tomorrow for a FIFO visit.We personally dont charge any fees for our services as we are remunerated from the lenders who we place the business with.Yes taking an standalone 80% lvr and the balance of the 20% + acqusition costs from your PPOR is standard practise.What you…[Read more]

Hi SundanceFirstly welcome to the forum and i hope you enjoy your time with us.Sounds a bit like a Wesuck (Westpac) deal to me so if i am right then not suprised they told you you could borrow 100% of the purchase price without offering your PPOR as security. Hate to say they are totally incorrect and it cant be done unless you put in cash…[Read more]

Funny got a couple of forum clients in Tom Thumb small world.Yes we often find clients say that their broker or banker has never purchased an investment before but is out there giving them advice on structure and suitable investment lenders.Most Brokers dont even understand the differing credit criteria applied by lenders.CheersYours in Finance