Knowingly withholding information that you know will materially affect the lenders assessment of your application is dishonest in my book.
It is commonly accepted the most lenders in Aust will not finance a WRAP transaction and similar warnings have been sent to mortgage brokers (by some lenders).
How would you feel if you rented a house to a…[Read more]
All markets are based on expectations. Traders, institutions, etc. take positions in the market to either make money or protect (hedge) their positions. Either way, they take a view of where the market may be heading and act upon it.
It’s the same with everything. Generally, a buyer purchases because he thinks he’s getting good value and a seller…[Read more]
Yes that’s correct but the sellers in the money markets would not sell money to the banks if they thought they were going to loss. Therefore interest rates are a reflection of where the “market” thinks rates are heading.
Plus the large banks fund mortgage monies from deposits and their own “internal cost of funds” through their treasury…[Read more]
I think I am a good example. I am a mortgage broker. I try and offer advice as much as I can. I don’t advertise the fact that I am a mortgage broker because I don’t want any business from this site. (Please don’t think I’m blowing my own trumpet. I’m just providing an example)
It’s disappointing that you are so cynical that you don’t…[Read more]
Most lenders will not take into account your reduced expenses becuase the loan term is for 30 years and they would assume that you would not live at your parents place for the next 30 years.
The only real reduction in living expense they may take into account are:
– company car.
– salary sacrafice benefits.
Re: break costs – maybe. It depends what your rate is and what the lenders cost of fund are. We had an aritcle in our newsletter about this. See our Aug/Sept 2003 newletter at http://www.prosolution.com.au/free_newsletter/free_newsletter.php and go to the bottom of the page.
If you are using a low doc it could be difficult. However, if you are using a full doc loan and only want 80% then you should be ok. For example, I know CBA will do 80% just about anywhere. I’m sure Mortgage Hunter will be able to help you.
There are some ordinary brokers/people out there that will encourage borrowers to do some wild things(particularly abuse low doc loans). People – DON’T LET YOUR THIRST FOR WEALTH AND PROPERTY GET IN THE WAY OF YOU ETHICS. Make sure you never lie or deceive a lender.
A lender called IMB will take 90% of rental income. They will also take external debt (i.e. debt with other lenders) at repayment amount. Most other lenders gross it up at a higher breanchmark rate. They are a good lender for borrowing capacity for investors.