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
DomDynamite
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
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
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
DynamiteTo 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.
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 MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
[
]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]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
dynamiteDynamite,
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
]Hi Dynamite
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