Forum Replies Created
Hi Shooshoo
I hate to say i think you are right and your brother maybe wrong.
Lenders often have a maximum loan exposure amount of around $1.5M per client so he may have met the threshold.
I own 40 properties and at one stage had around 25 separate loans all standalone.
Personally i am not a great lover of X ing your loans because there always tends to be issues maybe not initially but eventually down the track.
I think if i was him i would get a good Broker on the job and get an assessment of his overall position.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Roadhog
Yes it is fairly simple all you would do is refinance the current property to 90% of the valuation (In your case $368,000 x 90% = $331,200 ) and then use the difference between the new loan and your existing loan of $297,000 as the deposit and sufficient to cover acqusition costs.
Split the loans so you know whiich loan relates to which property and this also helps if one loan is not tax deductible.
Hope this helps.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Sydney
Why not give Michael a call and get him to do it for you as he is Sydney based.
Think i would prefer to trust Michael to get it done right for you rather than your Banker.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Boys beat me to a response comes of being 9 hours behind in the UK for the next month or so.
As Michael mentioned your Broker or Bank should be able to sort out the split for you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Teena
As Michael has mentioned the cheapest interest is not the sole parametre for choosing one lender over another.
There are 101 questions you need to ask yourself before you narrow down the selection criteria for a lender.
What may suit 1 customer does not suit the requirements of another.
Also you have to understand that some lenders only deal with mortgage brokers so you can't on your own expect to know every lender that is out there.
Why not give your mortgage broker a list of features you are looking for and let him do the leg work for you.
It does't cost you anything to deal with a broker and you get access to a wealth of knowledge.Remember a good broker has probably bought an investment property or two before.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi SR
The ATO apply the "Purpose Test" irrespective of the security used to obtain the loan so as i have posted many times before you could secure the new sub loan of $100K on the security of a pogo stick and if the funds were to be used for investment the interest would be deductible.
You would link the offset account to the non deductible debt portion of the PPOR loan and then have your income and IP rents etc paid into the offset account. Have the monthly interest for the sub loan and the separate Investment loan debited from this account. This way you will maximise the number of days you are haviing funds sit in the offset account saving you interest.
There is a big difference between an offset account and a redraw so be careful that your mortgage broker knows the difference to avoid the contamination Michael is referring to.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Colin
You might want to check the First Home Owner Grant / Concessionary Stamp Duty rules when you go down that route.
I agree if the lenders accepts the fact that you partially tenant the property then using the rental income for serviceability is fine.
What i was pointing out was that to use rental income to convince the lender yet then separately move in and claim the FHOG and SD Concession was Mortgage Fraud.Yes there are many ways to skin a cat and when you do the number of deals i do each year you have seen most of them but there is a difference between doing it legally and not.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
ildi shoot me an email and i will email you an article i wrote for the API Magazine on just that topic.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As Jamie has mentioned a Broker might be the way to go as it costs you noting to have someone review your situation and suggest a variety of lending options.
Of course providing a rental assessment on the property in order to boost your serviceabiliity when you intend to occupy the property for your own occupation(even for the first 6 months) is actually mortgage fraud so not recommended.
CBA are certainly not on the top of the serviceability list so a second opinion would be the way to go.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Jamie is an excellent Broker and does a lot of deals via email and fax.
Why not drop him a line and get him to assist you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As Jamie mentioned.
Many investors believe this is the case but regretfully nothing could be further from the truth.
Course if you can purchase cash flow positive property then you can keep going certainly in the short term.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Chris
Not in Brisbane but Northern part of the Gold Coast.
Steve Hodgkinson who is a partner with Gold Business Group at Southport has been my Accountant for the last 15 years and i wouldnt go anywhere else.
Top bloke as well as a great property Accountant.
If you call him tell him i referred you as most good property Accountants are not taking on new clients.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Maybe the fact of being 12000 miles away might have made my eyes go funny but if the Bank has a worth double the value they wont be caring too much about your clients caveatable interest.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Where are you based ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Wendy Higgins is the first Broker to have completed $1Billion worth of loans in Australia so yes certainly comes well recommended.
Course with that number of deals you dont always get to see Wendy but one of her many staff.
I get it is like anything some Brokers like Bankers / Mobile lenders dont have a clue, dont care and unfortunately tars the brush of the whole indusutry.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
But of course the mobile banker can only tell you how good their product is and certainly wont tell you that you could do better up the road.
With a good Broker like Jamie you get the wealth of knowledge across all lenders and would end up with a better overall deal that merely going to 1 lender.
Of course also remember as an investor the lowest interest rate is not the sole consideration. It may well be the only thing a Banker wants to force down your throat but there are 101 of other features such as serviceability, top credit policy, LMI etc etc etc to look at.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Brendon
Understand we are all here for the same end purpose but agree with Jamie so things maybe shouldnt be aired in public.
Jamie is an excellent young broker (maybe not as good looking as me) and can certainly assist you.
His email address is [email protected].
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Unfortunately the lowest rate (and you can do better than 6.96% on a 95% lvr anyway) is not what most investors home in on.
There are 101 other considerations.
As i mentioned earlier the way your CBA manager has suggested you structure the loan is totally inappropriate for an investor.
Just shoot Jamie a line and get him to sort it out for you.
Professional advice can make a big difference over some unqualified Bank johnny.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sorry i disagree there are several better products around than the Rams Lodoc.
With one of the majors Lodoc is still a standard product with no requirement to produce Trading statements, BAS or indeed Accountants letter of income confirmation unlike RAMS which require 2 out of 3.
In saying this of course i am not convinced you actually need to go the Lodoc route as with ongoing contract work you should be able to go full doc at such a low lvr and with consistant Contract work.
Many Brokers and indeed lenders encourage Lodoc as they feel this is the easier way forward however under NCPP the requirement to ensure the loan affordability can be demonstrated has meant that documentation is still required so why not get yourself a better overall deal.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
batgirl in answer:
1) This will depend on a couple of factors but would normally be paid on the top up amount or the new LMI less that already charged and paid..
2) Yes and No depending on the lender and their current policy.
3) Yes and No but would suggest it would be so it can clearly be identified.Personally I wouldnt use CBA for an investment loan if you have your PPOR with them.
Why not drop Jamie an email and get him to write the new business for you.
Cost you nothing and you get free Professional advice. Not sure where else you can get such a service.
in fact reading your comment on how the CBA told you to structure the new loan i think i would be ringing Jamie quicker rather than later.Another piece of inaccurate structuring advice from a financier.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
