Forum Replies Created
GOM
I wouldnt touch Investec with a barge pole.
They fund their product through Adelaide Bank and it is made up of an interest only loan at standard Adelaide Bank variable rates and then an Investec P & I loan (even if it is an IP) at 2% higher.
I am refinancing 2 of them at the moment for a Dr / Dentist client and they have been nothing but trouble to deal with from start to finish.
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Richard Taylor | Australia's leading private lender
Depends on how small is small ?
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Richard Taylor | Australia's leading private lender
Hi Robbie
Good luck in getting either of the mortgage insurers to accept that in the current climate.
Dont want to put the dampners on the idea it just wont happen especially under NCCP (Our new Credit Laws 1.1.11).
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Richard Taylor | Australia's leading private lender
Helen
Remember even if you try and flip the property you will have to pay the Stamp Duty on the contract 30 days after you go unconditional so this will before the Settlement.
Flipping is not that easier as unless you have a call option in the Contract you wont be able to flip it merely onsell it with a new Purchase Contract or a Transfer by Direction.
In realty you will need to settle on the property first and then even same day onsell the property to your buyer.
Of course in both cases you would need to make sure that for whatever reason your buyer did not settle you have cash to settle with the original vendor to ensure you are not in breach of contract.
Why could you not get funding for the property ?
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Richard Taylor | Australia's leading private lender
I would be running a mile if your Mortgage Broker has given you that advice.
You could only claim the interest on the current balance of $190K.
I am assuming that the property is owned solely by yourself and there is no Mr or Mrs Christinah ?
if there is there are Spousal buyout options.
Richard Taylor | Australia's leading private lender
Wont answer the others points this time of night as that can be done later but hate to say YES all Trust debts do have to be declared as you as the Trustee have provided a Personal Guarantee.
As has been pointed out on a many a previous post in the current climate Buying in Trust will not increase your serviceability.
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Richard Taylor | Australia's leading private lender
Hi Wobbly
Unforfortunately no 1 formula fits all.
You have missed off credit scoring which if often used where the lvr is over 80%, sensitised rate is applied to the SVR rather than the rate you are being charged although with some lenders they take other comittments at payable rate rather than sensitising the committment.
Then you have rental income which can be anything from Nil to 100% depending on a variety of factors.
Of yes Living Allowance slightly varies with all lenders depending which edition of the HPI they use.
C/C anything from Nil to 3%.
Did you want to go fixed or variable. With fixed it is often the rate charged which is the servicing rate.
Oh i could go on and on.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jvd
Rather than post your income details on the forum feel free to email me some details and i can crunch some numbers for you.
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Richard Taylor | Australia's leading private lender
Yes in Brisbane.
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Richard Taylor | Australia's leading private lender
Subject to a little bit more soft data in regards to income / expenditure the deal should be able to be done.
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Richard Taylor | Australia's leading private lender
Liberty Finance for one.
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Richard Taylor | Australia's leading private lender
We carry out a annual valuation on all of our properties and havent seen any slowdown in any of them.
Not sure which part you are looking at but can only comment in Inner Western Suburbs where the majority of my properties are located.
Richard Taylor | Australia's leading private lender
Terry
I think if you check the website you have your answer.
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Richard Taylor | Australia's leading private lender
Whilst there are still lenders who will allow a gifted or borrowed deposit at 95% lvr there is more choice if you can show a savings pattern.
Probably would need at least 3 months full time employment and not be on probation to get such a high lvr.
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Richard Taylor | Australia's leading private lender
Hi David
Firstly welcome to the forum and I hope you enjoy your time with us.
From which Country have come from ?
Nice try by the way but unfortunately if you married you will only get the FHOG once.
If you havent got permanent residency then you wont qualify for the FHOG and also will have issues in qualifying for a loan greater than 80% lvr.
Probably an idea to put in structures in advance to get you up and running so that come April you are ready to strike.
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Richard Taylor | Australia's leading private lender
PJ
An offset account can be allocated to any loan (assuming the lenders offers such a product) but i cant see why you would ever need 20 of them.
Assume the IP loan balance is $350K then you would need more than $350K in the offset account to have the requirement of a
2nd one. No you wouldnt need to have all of your loans with the same lender.You have to make sure that you have sufficient funds in the offset account to make sure the savings outweigh any monthly fees or higher interest rates / application costs etc.
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Richard Taylor | Australia's leading private lender
Sure
$460,000 x 90% = $414,000
$414,000 – $193K + $130K + $20K = $74K.
Assume acqusition costs come to 24K you would be left with $50K.
Assuming a 90% IP lend then $50K on $500K purchase would mean borrowing $450K plus LMI.
Course if the acqusition costs are more then you will have less to play with but could always go 95% lvr if needs be.
Hope this helps. As i say few variables.
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Richard Taylor | Australia's leading private lender
Hard to say with Anz as an interest only loan involves a whole new credit submission.
Is it under the Breakfree package ? if so you probably can do it fee free. If it is under Simplicity then might up for a couple of quid.
Either way gouging equity out with Anz is not the easiest especially when it is over 80% lvr but your broker should be able to advise you the easiest way around it.
Without actual numbers it is difficult to advise.
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Richard Taylor | Australia's leading private lender
In essense you are correct but assumes that you have No PPOR undeductible debt otherwise the offset account would be linked to this loan.
Also i dont think 20 offset accounts is necessary as 1 would be sufficient. (depending on the loan balance & savings amount)
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Richard Taylor | Australia's leading private lender
Hi Nurse
Yes lenders will take into consideration your current income and the current and potential rent into consideration when working our serviceability. Remember these calculations can vary considerably as some lenders take 75% of the rent others take 100%.
There are also a few other variable which means the figures can vary considerably.
You could get away with a 95% loan to valuation mean all you would need to access is 5% of the new purchase price plus costs however the costs will increase.
Probably a good idea to get your current PPOR revalued once you have finished the work and see what you can pull out of the place. Drop me an email if you want a Residex report on the property and i can send you one.
Some lenders using computer modelling to cover off on their valuations so can be a useful guide.
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Richard Taylor | Australia's leading private lender
