Hi all,
Just a question on finance. I have been approved 85% I/O loan on a property I bought for 279k. Bu thte lender wont lend me 90% as I dont meet there criteria of Mortgage Insurance. Apparently you need a 5% savings history to get 90%-95% lend.
Are there any lenders that dont required a savings history for a 90% lend. Some people say YES and some people say NO.
I need to hear from an expert as I’m confused. Plus I’m short 10%. What are my options?
I got the porperty valuated at 305K plus secured a 12 month lease on it already. Settlement is not till 1 september.
What would yo do in my situation. [
]Vinh
Yes there are a few lenders that will do a 90% lend with no genuine savings. BankWest & IMB are a couple off the top of my head.
A lender will want to make sure that you have sufficient funds before they give you unconditional approval.
Re: short fall. How about personal loan (but must be able to service), Sell assets, borrow from family, investment partner, etc. This is probably something I would have addressed before signing for the property.
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.auHi, I am no expert here – but you need to be clear as to whether you don’t meet the lenders LMI criteria, or the LMI insurers criteria.
The reason for this is that there are only 2 (3?) mortgage insurers operating here, so if it is the insurer declining your application (not the lender) then it will be pretty much impossible to get it through another lender (who will simply go to the same mortgage insurer!).
I hope this makes sense!
Tas Investor
You would think that it so, but… LMI polcies can vary between lenders. Eg GE with bank A has one policy, but GE has a different policy with bank B.Eg one building society (Widebay Capricorn) is able to offer 95% loans with no genuine savings.
I don’t know why this is the case, but suspect each bank negotiates the criteria the the LMI companies will be using with them
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
OK – thanks for that Terry, and sorry vluu27 for any confusion.
I have learned something new today too!
Hi
Thanks for your replies. You guys are awesome.
I think this is a vey confusing topic. Something really funny happened to me which I thought you need to hear.
After the bank refused to give me 90% due to not enough savings history I rang up eCHOICE and spoke to some guy. He said that “all lenders will require you to have a savings history for a 90% lend” So I told my dad and he went to one of the major banks and law and behold they told him. “Crap, we can lend you 90% I/O with no savings history” They are sending me out the papers now to sign…I’m thinking “what the hell”. Either mortgage brokers dont know what they talking about or certain rules have changed without noone knowing.
My own MB told me you need a savings history, eCHOICE says so and i rang another 2 independant MB and they said the same.
mmm you comments are appreciated
There are a lot of Mortgage Brokers out there that don’t know what they are doing. There are many lenders that offer 90% loans without genuine savings. And I know of one with 95% LVR with no genuine savings.
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
Banks tend to do as they choose anyway. If they really want your business, they will bend over backwards and crawl thorough flaming hoops, whilst reciting the National Anthem. [
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