AMJust to correct a couple of pointsNodoc is not dead and 2 lenders are currently offering it.As far as i am aware there is only 2 lenders that dont require LMI on Lodoc 80 although they charge a risk fee instead which is much the same.LMI ovr 60% is a Government Requirement for Capital Adequacy.There are a few lenders who will do lodoc 80 without…[Read more]

On a funding perspective you are back to around 50% lvr subject to minimum loan amount.

On a funding perspective you are back to around 50% lvr subject to minimum loan amount.

No certainly wont go against you and nothing to stop you switching to their IO product with 100% offset account.

mikea1988Why do you need to use a family pledge style loan for your IP why not get them to borrow the deposit funds in their own name and then onlend them to you at the same rate and repayment terms.You would then claim the interest as a deduction on both loans and they inturn have a neutral income position.Sounds to me this is all new for your Broker.

No issues as investment property in fact i have a few 1 bedders and they rent out excellently.Depending on the actual size of the property you might have issues in financing a higher lvr and if you do then someone else may if you come to sell it.'If not then as long as the Body Corporate expenses are not too high and the building is generally well…[Read more]

The risk is he will default and you will have to take possession action to recover the property.Given he has already given you $650K this may not be such a bad thing.Of course if he defaults on the first mortgagee this maybe another matter.Make sure your Solicitor documents the $200K Vendor Finance by way of registered 2nd mortgage and check the…[Read more]

Zac Yes just pay in the minimum amount.If the redrawn funds are for investment then that is fine but i personally would still like to see a split loan account to keep things nice and clean for accounting purposes.

Wishful as Terry has mentioned likely to be a good 7 working days but i cant believe they have asked for them in the first place.Doesnt sound like the Bank johnny who put the deal together for you has any idea.With No LMI quotes would not be a requirement.

Hi MeganJust to let you now the interest on the redraw from your current loan will not be Tax deductible as the funds will not be used for investment so you might have to rething your figures as you will be paying for this not the Tax man / tenant.

JssmithSorry can i ask why you had to pay him a fee as he would have received a commission from placing the lender for you  ?

Yes GOD must admit it isnt bad if the loan amount is enough.Processing with ING has slowed a bit at the moment and you still cop their legal fees on each deal but all in all not bad.

HenrikWe still finance a reasonable number of FN deals in Florida but the US lender we use doesnt lend outside of the State.The other US lenders we deal with dont take Australian FN only British FNs applications.

Will have no bearing on the FHOG application whatsover.

Hi JaimeFirstly welcome to the forum and I hope you enjoy your time with us.Difficult to start suggesting where to start looking until you know what you can afford and this is going to be based on the ability to service the loan and the available equity you have in any current property or cash in hand.I appreciate it is a public forum but if you…[Read more]

ZacSorry indeed i did misread the post.No take the new PPOR loan as a 80% interest only and place the balance of your funds into an offset account.You might even be tempted to go to 85%.

I certainly wouldnt be putting down 20% deposit on an IP when you have a PPOR loan.You would use the 80K savings to pay down the PPOR debt and then take out a LOC or interest only loan secured against the PPOR for the same amount.Then use these funds as deposit for the IP and take out a separate standalone loan for the balance.This way the…[Read more]

If the LVR is 80% of current value then there will be no reason why the Bank needs quotes.If however it is 80% of post work valuation then it is likely the Bank will want to pay the funds out directly to the tradesman to ensure the work actually gets done.All in all your Broker should be able to sort it out for you.

Yes Terry guess it wasnt bonus commission that month for loans that are cross collateralised.Darren drop me an email and I will email you my 10 reasons why you shouldnt do it.By the way QS = Quantity Surveyor.

You bet they do "make their money on the property sales commissions" and i bet it is not standard real estate comission either.