Just to clarify if you purchase an investment property and do not reside in the property you are STILL entitled to receive the First Home Owners Grant assuming all other qualifying criteria has been met.Buying or having owned an IP does not disqualify your FHOG elligibility. Also you would need to satisfy the terms of the FHOG so normally…[Read more]

JazzFirstly welcome to the forum and I hope you enjoy your time with us.Jac has made a couple of good points however just in case the following point is misunderstood thought i would put my spin on it. Move into the big dwelling after a few years when the tenants have gotten the mortgage to a manageable level for you.This comment implies that the…[Read more]

Hi CarlDont worry being a Financial planner many clients tar us all with the same brush until they get to know what you do lol.You want to maximise your interest deductions on deductible debt and therefore do not want to be paying off principal on a investment property especially if you still have a non deductible loan secured on your…[Read more]

Duncan youare bang on but remember there are offset accounts and offset accounts.

Hi CarlFirstly some of us financial advisers dont charge an arm and a leg but i agree in most cases the industry is littered with either those FA's seeking out the highest commission paying products to recommend or charging unrealistic fees for limited advice.Now onto what you originally asked in your post:Couple of things spring to mind which are…[Read more]

Yes with the majors it is normal however with a lot of lenders you can have multiple offset accounts.

Can you tell me which BANK charges a risk fee and doesnt mortgage insure. I would be interested in your answer.

Yes a guarantor can be a business partner but in saying this the lender would expect their to be some financial or beneficial interest in the provision of the guarantee.I am not sure I would want to offer my property as guarantee for my business partners home loan but everyone to their own.If your partner is providing security by way of guarantee…[Read more]

Varies from lenner to lender but rule of thumb would be the LOC / interest only loan would take the total lvr to 80% and then you use this as deposit on the new property. 

Jess intends to use the LOC as part deposit but by doing this it does not increase borrowing capacity.

We use Collins Securities through Perpetual.

SusanneYou are incorrect in most cases you the borrower do not pay for the valuation.Certainly you may pay an application fee which covers the lenders costs of undertaking whatever type of valuation he deems fit and on what basis he requires. (i.e 60 forced sale, market val etc etc) The valuation is done for the lender and the borrower has no…[Read more]

No if you are referring about Widebay Building Society they are not the funding source.Yes LMI is higher than normal, application fee is higher than normal, interest rate is higher and there are a few credit requirements when it comes to minimum employment period etc.All in all if you fits and it gets you on board i guess it is worth…[Read more]

1% Application fee is the same thing as a risk fee. Either way it is more expensive than than LMI.Why dont you tell us who the lender is.

Certainly obtaining pre-approval can be handy but not if it means your lender wishes to cross collateralise your 2 loans.You would be better off to establish the line of credit on your own security first and then you can access these funds to cover the deposit (usually required when signing the purchase contract) and then get pre-approval from a…[Read more]

NitYes you are able to Roll over your existing fund into a SMSF subject to complaince and nothing to stop you taking out a SMSF loan.In essence the Fund cannot borrow so the property is held through an Instalment Warrant with a Corporate Trustee which takes out the loan and on repayment can be passed to the SMSF without Stamp Duty or CGT. Likely…[Read more]

Hi JessHate to say nothing suprises me at the moment in the finance market with some lenders.Everyone is looking to reduce their risk profile and would rather walk away from doing the deal than over expose themselves.In saying fear not some lenders are still lending believe it or not lol.

Hi jhkCouple of answers.Lender will take the purchase price or valuation whichever is the lower so in this case they will lend against the purchase price of $247,200.As far as Lodoc goes then some lenders will ask for BAS and Trading Statements where the LVR is over 60% but many wont. However where the LVR is 60% + most (there are the odd…[Read more]

AmHate to say i dont believe you.The only lenders offer non LMI products are charging risk fees. There are a couple of lenders not charging the client the LMI but the loan itself is still mortgage insured.There is a big big difference.

They are not alone. At least 1 of the other majors has its mortgage documents prepared in Mumbai.