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I have just financed a deal for an Australian client buying in France at 4.25% fixed for 25 years but you wont find any overseas lender take a mortgage your Australian security.
There are many other ways around it but as SNM has mentioned the Exchange Risk would kill you over time.
Unless you decide to invest in overseas property you need to accept the RBA willl govern your likely rate for the forseable future.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Look at an alternative as there are a couple of options to go to 90-95% without paying LMI.
Whilst it is a Tax deductible expense it is something where possible i would avoid or at least reduce.
(Remember it will be cheaper to start again with a new lender and less LMI exposure than to use your current Bank whose exposure willl be the 2 loans added together)Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Firstly hope you enjoy the move to Qld.
Please dont tell everyone as we like to limit the weekly number moving up from Victoria.
As Terry has mentioned you certainly could access some of the available equity but you need to remember there is a difference between usable equity and actual equity.
If your current loan is not interest only loan you could look at converting it to an Interest only loan and then even consider fixing the rate of interest which depending on your current rate could save you a considerable amount (there are some excellent deals around at the moment).
You would look at splitting the loan to save you interest and then take out a new loan with a separate lender for the new purchase price. You could also look at transferring the property to your husbands name to maximise the available interest deductions (Stamp duty maybe a consideration but couple of options there) and dependant on the age of the property could look at whether it is viable to have a QS report undertaken.
Your mortgage broker should be able to advise you of the options.
Anyway enjoy the move and we will try and lay the sunshine on for you when you cross the border.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As above.
You would be suprised how many loans are declined on automated credit scoring often as a result of an overkeen or ill infoormed broker or Banker suggesting you just put in an application to see how it goes.
Only other thing i would ever say is if you are buying an IP try a broker who has bought or owns one or two not one who is still paying off his PPOR. I mean would you go to a specialist for diagnosis of a medical condition and performed the odd operation or a nice fella who has read the books.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Derek agreed that is also why i suggested the loan should be interest only with 100% offset from day 1.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Adam
Firstly welcome to the forum and i hope you enjoy your time with us.
Way i would probably structure the loan if you were a client is mine is:
1) $200K Interest only loan linked to a 100% offset account.
2) Investment line of credit to 80% of the purchase price less the existing loan in 1) above.You wouldnt pay anything for the Line of Credit until you drew down on the loan and would be probably be able to negotiate a better overall interest rate / package based on the higher loan amount.
Your mortgage broker should be able to offer you some suitable options.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Streaker that is about right.
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Richard Taylor | Australia's leading private lender
Your Mortgage Broker on the loan side and your Acccountant for the buying entity.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Henry hate to say this is definately not the case.
Only reason you would commission your own valuation report is if the Banks figure came in less than you believed was right and you decided to have another done by a panel valuer and then have it assigned to the lender.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Sounds to me like you are with the wrong lender.
I cant say i have ever told a client they had to front up with cash to pay for a valuation.
I can think of a couple of lenders who I merely order a valuation for my clients and if they dont come up to scratch we merely ditch the application with no credit search undertaken.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Henry all depends on the lender.
Some charge up front some dont charge at all.
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Yours in Finance
Richard Taylor | Australia's leading private lender
PM answered
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Richard Taylor | Australia's leading private lender
Hi Poida
Sorry to appear negative but a lot more information is required to provide any form of sensible answer.
There is rural and then there is rural and no 2 are the same.
It could be size of the property, post code or something more sinister.
Let us have more details and we can all have some imput.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Jamie we can only try.
I was under the impression that an offset account could also be used as a buffer account for cash also but maybe i am getting old fashioned. Been a week or two since i last bought a property so might have been getting rusty lol.
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Yours in Finance
Richard Taylor | Australia's leading private lender
I didnt want to say you had NO chance at 95% as i was aware of one lender who would go to 85% for owner builders but as Miichael said anything over 75% iis a struggle.
Do you really want to go through the hastle of transferring the property from your sister to you and the related expenses as has been mentioned. Course this assumes your sister would qualify for the loan and claimed it as her PPOR to avoid potential CGT.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Dcwwood
Just wondered why you would recommend investing Daniel''s $30k at 6.51% and having to pay Tax on the interest at your highest marginal Tax rate when you could place the funds in a 100% offset accoount and get circa 7% Tax free.
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Yours in Finance
Richard Taylor | Australia's leading private lender
It will also depends on who will build the property.
If you are thinking of doing it yourself and considered an Owner Builder i think you have very little chance of getting 95% lvr.
As Michael has mentioned for the higher lvr's you certainly need to have excellent credit, employment and score well.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes it can and is.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Kym
Yes your situation is one we get asked about on many ocassions from clients and one that there is no simple quick fix.
If you intended to remain in the current PPOR for some years then certainly you could look to sell the uneuncumbered propertiies to a Unit Trust for 100% of the current market value and borrow the full amount. Your husband could own the units an claim the deduction.
Unfortunately you will incur Stamp duty on the Transfer and possible CGT however like anything the numbers need to be worked to see whether it is a viable strategy.
Easiest way going forward is to make each new loan interest only irrespective of whether you reside in the property or not.
Dont remember there is no reason why your husband cant borrow 40K required for renovation on the security of one of his properties and lend it to you at the same rate.
Sounds too me like you might need to think about a complete loan review to make sure you are on the right course going forward.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes funds you have paid off the principal if it was a P & I loan or alternatively the equity created by the increase in capital growth.
Most lenders are going to want the property revalued.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
