All Topics / The Treasure Chest / How Do I Borrow Out Of “Postcode Area”

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  • Profile photo of dynamitedynamite
    Member
    @dynamite
    Join Date: 2003
    Post Count: 2

    Question for you, if you can help.

    I have a property worth $110,000 with no debt against it and unencumbered in Stanthorpe, Queensland, 4380, which has a population of approx. 15,000, so is not a small country town. I paid cash for it when I bought it and now wish to leverage against it to increase my real estate portfolio but cannot find a lender because they tell me it is not in their “postcode book”. I have tried different brokers who say they can get me the money but then after applying for a loan they come back with the same answer “lender cannot get mortgage insurance cos ‘not in their postcode book’ “.

    Being self-employed for the last 25 years I am after a non-conforming/low doc loan on this property. Can you help me?

    Any suggestions anyone?

    Cheers
    Dom

    Profile photo of OzbrokerOzbroker
    Member
    @ozbroker
    Join Date: 2003
    Post Count: 16

    Dynamite

    Within NSW, most of the big five lenders have or are in the process of introducing low doc loans. ANZ will lend to 60% LVR (loan to val ratio, St George will lend to 65% and Com Bank similarly. None of these are subject to mortgage insurance, which for low docs is heavily mortgage insured by a couple of the mort. insurers, and they have strict policy in terms of postcode.

    I attended a lenders training day only last week and they had no problems with postcode..

    Have the brokers you’ve spoken to put your situation to one of the majors?

    I’ll make enquiries over the next few days..

    Ozbroker

    Profile photo of OzbrokerOzbroker
    Member
    @ozbroker
    Join Date: 2003
    Post Count: 16

    Dynamite

    Me again.. Must be the time of day. What I meant is that the majors don’t mortgage insure, but that all the other lenders doing low doc have strict mortgage insurance guidelines.

    Regards

    Ozbroker

    Profile photo of dynamitedynamite
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    @dynamite
    Join Date: 2003
    Post Count: 2

    Hi Ozbroker

    Thank you for your feedback.

    I had a low doc loan approved, conditional upon valuation, from CommBank but when they were organizing their valuer they called me to say they would not go ahead with the loan because Stanthorpe is not in their postcode book for mortgage insurance which they pay (and not me because the loan is under the 80% LVR).

    Any further suggestions appreciated.

    Cheers
    Dynamite

    Profile photo of susie_langmaid_2susie_langmaid_2
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    @susie_langmaid_2
    Join Date: 2002
    Post Count: 44

    To Dynamite,
    We had trouble buying in Beaudesert (4285) but our broker came up with an 80%LVR through AXA. AXA paid there own MI “and” can you believe there own legals. If you get stuck e-mail me at:
    [email protected]

    Regards, Sue L.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Ozbroker/Dynamite

    That’s is right. Combank low doc loans are all mortgage insured with GE and they have a strict postcode list. You also pay a 1% premium on interest rates with Combank Low Doc. there are much better products available, but most are in fact mortgage insured-this includes all loans not just those over 80% lvrs.

    Terryw
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of traceyimbtraceyimb
    Participant
    @traceyimb
    Join Date: 2003
    Post Count: 82

    [;)]Hi Dynamite
    If you can provide financials to Commbank they have a policy to lend anywhere in Australia regardless of population, cannot be mortgage insured (all their lo doc are subject to LMI) and cannot be over 80%LVR. You should be OK to get a lo doc loan under the magic figure of 65% with some lenders. Hope this helps

    ***************
    Tracey Imbuldeniya
    Authorised Finance Consultant
    Mortgage Masters Pty Ltd
    Ph: 0401 674464
    Email:[email protected]

    Profile photo of dynamitedynamite
    Member
    @dynamite
    Join Date: 2003
    Post Count: 2

    hi Tracey

    Thanks for your help.

    I’m after a low-doc loan cos I’m self employed.
    Although I wish to borrow 80% LVR and I don’t pay the mortgage insurance, CommBank pay the insurance themselves without charging clients. Their issue is that Stanthorpe is not in the “postcode book” that the mortgage insurance company that CommBank use. Apparently mortgage insurers do not insure investment properties out of major cities.

    cheers
    dynamite

    Profile photo of bfsfinancebfsfinance
    Participant
    @bfsfinance
    Join Date: 2003
    Post Count: 4

    Dynamite,

    There are low doc lenders who do not mortgage insure. If you want to persue this please let me know.

    Bernie Sutton
    BFS Finance
    [email protected]
    0402 305 712

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