All Topics / Finance / Where to go when banks says NO MORE!!

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  • Profile photo of foxyacfoxyac
    Member
    @foxyac
    Join Date: 2005
    Post Count: 17
    June 28, 2006 - 10:52 pm

    Hi All,
    Just wanted to hear your views on what to do or where to go when the bank says NO MORE?? I have borrowed for 3 houses and was stuck at the 4th with the LMI saying I’m now too much of a risk because the properties are geared too high. [grrr] I can only afford 90-95% loans as coming up with deposits are very hard to do. (They will now only loan me 80%) My question is where do I go from here? I have heard and read about going to other banks but how do I seeing as I don’t want to refinance and don’t know how to approach it. All my loans are stand alone and in my name.

    Any help would be really appreciated as I really want to get more and more. [blush2]

    Thanks

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    June 28, 2006 - 11:05 pm

    Hi Foxy

    Yours is a common problem and one why we dont always suggest that a client put all of his/her eggs in 1 basket.

    Each lender has a different set of lending criteria which includes both LVR and serviceability, what they do and do not take into consideration for income ete etc.

    If you are not willing to consider refinancing 1 or more of the loans then i feel you will be stuck with your current lender as most organisation who are prepared to take 2nd mortgages will want to max out at 85% LVR.

    If the deal is right then 90 / 95% LVR on an equity release refinance would normally be available but it would mean switching lenders.

    To maximise your future borrowing you could seek an 95% IP loan and get the LMI capitalised to the loan to save the amount you need to come up with upfront.

    Richard Taylor
    Residential & Commercial Finance Broker
    **NODOC loans from 7.14%**
    Licensed Financial Planner
    http://www.yourstatefinance.com
    [email protected]
    Ph: 07-3720 1888

    Richard Taylor | Australia's leading private lender

    Profile photo of redwingredwing
    Participant
    @redwing
    Join Date: 2003
    Post Count: 2,733
    June 29, 2006 - 11:54 am

    where to go..straight to a good broker!

    “Money is a currency, like electricity and it requires momentum to make it Effective”

    Online Positive Cashflow and Renovating Calculators

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 2, 2006 - 1:53 pm

    There are two main LMI companies, maybe your current lender is only using one of these? Which lender are you using?

    Terryw
    Discover Home Loans
    Parramatta
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of crushercrusher
    Participant
    @crusher
    Join Date: 2002
    Post Count: 186
    July 2, 2006 - 2:08 pm

    Consider that you may be pushing things too far, too soon. It may be prudent to take time for some more equity to build up in your properties. If your gearing is high then you ARE in fact in a high risk situation and wanting to push the risk even further. Is that really where you want to be?

    Todd Burns
    http://www.freepropertyhelp.com.au

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