AMP is the third lender that will no longer give discounted rates for Low Doc rates – the AMP change is effective 28 July.
St George has increased Low Doc rates by 0.35% already last month.
Batten down the hedges for all Low Doc clients out there; I think others will follow soon
Richard Taylor | Australia's leading private lender
Hi Richard
I have a couple of these low doc loans. One for my residental dwelling and one on my investment property. At the time I got these it wasnt really much more for the low doc but now one of my loans is nearly 10.5% and the IP construction loan is nearly 10%. Luckily we can afford the increases but it has made quite a difference to repayments. 8.77% seems very low is that still current and if so are these rates avalible in WA??
Angela
Hi Angela
Yes as i type they are still just about available.
I have to say at the moment our biggest number of enquiries we are receiving is refinancing of lodoc loans.
Shoot us an email with some details and I would be happy to try and assist you further.Richard Taylor | Australia's leading private lender
LOL. Richard might have been a gardener in a past life. Batten down the 'hedges' must be a flash back of some kind.
I believe the term you were looking for is 'Batten down the Hatches' , Rich.
Anyway Angela, if you are looking for something a little more definite than 'still just about available', then I am also happy to give you a quote for some Lo Doc alternatives. At 8.77, I can only imagine Richard is talking about the MAV Plus Commonwealth Bank product, and you would need over 750,000 total borrowings just to qualify.Anyway, no harm in shopping around. Email me at [email protected] and I will be happy to assist.
Tim
It was supposed to be a touch of comedy.
8.77% is still available depending on the numbers.
Richard Taylor | Australia's leading private lender
At the moment LoDoc MAV pack is only 8.74% and you only need to borrow $250k.
Food for thought.
MortgagePlus wrote:LOL. Richard might have been a gardener in a past life. Batten down the 'hedges' must be a flash back of some kind.
I believe the term you were looking for is 'Batten down the Hatches' , Rich.
Anyway Angela, if you are looking for something a little more definite than 'still just about available', then I am also happy to give you a quote for some Lo Doc alternatives. At 8.77, I can only imagine Richard is talking about the MAV Plus Commonwealth Bank product, and you would need over 750,000 total borrowings just to qualify.Anyway, no harm in shopping around. Email me at [email protected] and I will be happy to assist.
Matt,
I understand what you are saying, but the discount is only a special promotion and may end at any time.
Your point is valid though. Thanks for your feedback.
I personally can't see it ending anytime soon, as well it has been at that rate for quite a while now. It will certainly be interesting to see what happens.
In saying that before last Tuesday we were getting 0.8% off the SVR rate with SGB on the right size loan but must admit we do a fair amount with them each month.
I am not convinced CBA offer will last much longer given the other majors are starting to tighten.
Richard Taylor | Australia's leading private lender
I would like to get out of these loans but exit rates are huge! One is 5000 and the other is 12000 I owe 775000 in total and value is approx 1 200000. I am also worried that same thing will happen and these rates will also rise. I probably wouldnt qualify for fully verified? income approx 160000 pa and no rental income yet as one house still under construction but will be approx 23000 pa should be complete 2-3 months
Angela
Angela,
If you would like to email me some basic information on your current rate, lender, when your existing loan settled and your income (both gross and taxable), I will be happy to provide you with some assistance.
Have an enjoyable day.
Hi Angela,
At a very rough guess I would say that you are currently with RAMS? I have had to help quite a few people in similar circumstances to your own.
If you do need some help please feel free to email or call me as I would love to be of some assitance.
Kind regards,
Angela
Before you jump into the lodoc market dont give up on a full doc loan.
With the anticpated rental income we wouldnt be a mile away.Drop me another email and I can point you in the right direction.
Richard Taylor | Australia's leading private lender
Exit fee of 2% from RHG… it is crazily expensive. Their standard variable rate is 9.99% (much higher than big banks).
Luckily, I m sticking with big banks despite my previous MB recommended non-bank lender.I still don't understand why people would like to go to non-bank lender? I can't really see any 'real' advantage over
bank lender. Correct me if I m wrong.Angela, I never had any problem getting full doc from bank lender with similar range of income to you (PAYG) .
GOM
I am with you.
Richard Taylor | Australia's leading private lender
CBA, ANZ, ING and St. George bank increase the interest rates irrespect of RBA.
And they also mentioned that could be (potentially) another 0.5% on the radar….(i.e. 10% by next year)Earlier this year.. most of the property spruiker(s) keep promoting to the investor that interest rates will fall by the end of this year..In fact, It will go the opposite site.
I bet that sooner or later non-bank lender will price out from the competition or probably charging 12%+???
Beware of this non-bank lender…Time is over for cheap credit(s).
Hi guys
It was actually broker who recommended these loans. At the time there wasn't much difference in rates and I we had not done our business most recent tax, so was quicker and much less paperwork. I also didn't realise how much extra exit costs were. IP is with AIMS and PPOR is with Macquarie. I think we are going to wait until construction is complete and rented in a few months and by then we should have a better idea of what is happening in the loan market. I am also on maternity leave so once I go back our income will be extra 60k pa
Hi Angela
I am suprised a Broker recommending AIMS but i guess it takes all sorts.
Yes the DEF can be nasty with some of these smaller lenders and the way in which they funds their loans means they will also normally the first to rise when interest rates go up.
You are right once construction is complete then life will be a lot easier.
Richard Taylor | Australia's leading private lender
Hi Angela
I am suprised a Broker recommending AIMS but i guess it takes all sorts.
Yes the DEF can be nasty with some of these smaller lenders and the way in which they funds their loans means they will also normally the first to rise when interest rates go up.
You are right once construction is complete then life will be a lot easier.
Richard Taylor | Australia's leading private lender
How does the tax office diferentiate between a passive or active investor and what are the tax implications>
if you hold an investment property for over a year and then sell it that is considered a passive investment yes??
but if you sell your property or several properties before a year of ownership do you become a active investor and what are the tax implications ie is it capital gains tax or personal income tax
or you have several investment properties and you sell one or more within a year but keep the others for over a year are you active or passive investor and how is the tax calculated
confused bush investor !!
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