All Topics / Help Needed! / Bank Home Loan Servicability

Viewing 13 posts - 1 through 13 (of 13 total)
  • Profile photo of pypy
    Member
    @py
    Join Date: 2012
    Post Count: 20

    Can anyone let me know the lineant banks for Property Investment purpose (95% with tight servicability). Also let me know a contact point who are extrodinary in getting approval (there are quite a few people who will put their hand first but please dont waste both of our times)

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024

    At 95% there are no lenient lenders or mortgage insurers trust me.

    With most it will depend on your credit score as to whether you qualify and this can be determined by a number of factors.

    If the property is investment and you want an IO loan there are other factors to consider.

    With any hard data it is impossible to assess further.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    py wrote:

    Can anyone let me know the lineant banks for Property Investment purpose (95% with tight servicability). Also let me know a contact point who are extrodinary in getting approval (there are quite a few people who will put their hand first but please dont waste both of our times)

    Contact any decent broker and provide them the info on your situation. If it can't be done – they'll tell you. I know I wouldn't waste time on a deal that's not going to be approved.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of pypy
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    @py
    Join Date: 2012
    Post Count: 20

    Thanks Richard. My salary is $142K per year and married with 2 kids. Currenly I own a house which is my principal place of residence and the loan amountis $478K (95% of value). I have just sold one of my investment property and will have 50K and anoter 50K which I refinanced my PPOR. So intotal I will have 100K. I want to buy two properties using 75K and rest 25K will be my saving for emergencies since I have two kids. I have gone into contract for a property in  Emerald (400k with $600 per week rent till Dec) for which I am seeking 95%.  I have a credit card with 35 K limit and I owe 10K. In addition to Emerald property I want to buy a property in Gladstone for $550K rent expected is $750 per week.

    Please let me know if you could help me. Can call you any time.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    When you say you've gone into "contract" have you made it subject to finance or have you actually exchanged with the vendor? With $75k, you're not going to be able to purchase a $400k property in Emerald and a $550k property in Gladstone.

    Which lender is your PPOR with? Because if you do end up purchasing these two properties in quick succession, you might want to diversify with LMI.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of pypy
    Member
    @py
    Join Date: 2012
    Post Count: 20

    Currently with ANZ. And yes looking for 95% for both.

    Contract is Subjest to finance.

    Cheers

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099

    Jamie is right.

    Emerald and Gladstones are two of the fav hot spots for positive geared investors! but it comes with it;s associated problems

    1. Not easy to get 95% funding for these areas especially with tight serviceability
    2. Valuation is alwasy a hassle and takes a while to come back for both these ares + seems to fall short 75% of the time due to the fact the property price are driven by the rental yield and stability of these rent.

    Hopefully you haven’t signed the contract yet..

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
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    Same Banks. Better Rates. Served With a Passion.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    py wrote:
    Currently with ANZ. And yes looking for 95% for both.

    Contract is Subjest to finance.

    Cheers

    I'd give up on the second property and focus on getting the deal done with the first one.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099

    Richard will be able to point you in the right direction.

    But as Jamie mentioned, don’t over stretch yourself ….

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

    Profile photo of pypy
    Member
    @py
    Join Date: 2012
    Post Count: 20

    I have done my due-deligence with respect to my serviceability (I am a familman with 2 kids as well, so I had tpo). I have done my research from top to bottom and I am sure that these both propertie values are going to increase by atleast 10% in next year or so. Hence do not want to lose 100K :-) I am sure there is a way out.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Py your calculations on serviceability and the mortgage insurers are two different matters.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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

    Also consider tax deductibility.

    If you have cash available from a sale you would ideally want to put that off the home loan to reduce the non deductible interest and then borrow it again to increase deductions. Being such a high LVR will complicate things, but you could use redraw as a last resort.

    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 Aaron_CAaron_C
    Participant
    @aaron_c
    Join Date: 2012
    Post Count: 65

    A 95% lend, especially for an investment property, is so difficult these days unless you have $$$$$$ of serviceability.

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