All Topics / The Treasure Chest / That magical 20%

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  • Profile photo of caz_in_perthcaz_in_perth
    Participant
    @caz_in_perth
    Join Date: 2003
    Post Count: 29

    We just can’t make it!!!

    [:(!]
    I am getting SO frustrated. We put an offer on a property we really like as a PPOR but due to my partner (the sole income earner) having changed employers recently we just can’t get past the mortgage insurers. We are so close to having it but can’t scrape up more than 18% deposit.

    Looks like the only alternative is the non-conforming lenders and big wack of extra interest. Unless some creative person on this forum can tell us how to finance that extra 2% (approx $5000) in a way that won’t blow our servicability rating.

    We don’t have another property to offer as security because I decided to sell my IP and it is now under contract.

    [:(][:(][:(]
    Caz

    Profile photo of crashycrashy
    Participant
    @crashy
    Join Date: 2003
    Post Count: 736

    if the criteria is non-genuine savings, get a loan from family. are you using a mortgage broker? some lenders dont care how long the employment is.
    we were offered 6.11% instead of 5.95%, due to non genuine savings and short employment. not a big difference.

    good luck

    Profile photo of crashycrashy
    Participant
    @crashy
    Join Date: 2003
    Post Count: 736

    why do you need 20%? is that simply for M.I?

    90/10 loans are easy to get.

    Your IP is under contract? offer early access with rent. or is it currently tenanted?

    Profile photo of HaroldHarold
    Member
    @harold
    Join Date: 2003
    Post Count: 80

    I’ll give you a loan at competitive interest rates. Just jokes, just offer less money

    Profile photo of perthguyperthguy
    Member
    @perthguy
    Join Date: 2003
    Post Count: 12

    I live in perth myself and know of a good mortgage broker, if you need one.

    Darren

    Profile photo of Rusty073Rusty073
    Member
    @rusty073
    Join Date: 2003
    Post Count: 4

    Not sure why you need 20%
    When i brought my first house i went through KEystart Loans which is government Based there Was very little Deposit Needed and they helped me with the fees asscociated. I stayed with them for about two years and got $38000 Equitity in my house then refinanced to a national flexiplus mortgage. I should own my house in about 5 years.

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

    I agree with crashy. if yo are just 2% short of 20% deposit, just get it from a credit card or borrow it.

    And there are many banks that offer 90% loans with no genuine savings-with mortgage insurance.

    If you have sold you IP and it is under contract, will you get any money out of that (or have you already included that in your figures?). If so, the bank will be able to take that into account.

    Anyway, you could probably negotiate a 82% lvr wihtout LMI. Homeside will do this.

    Terryw
    [email protected]

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

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of retired@31[email protected]
    Member
    @retired-31
    Join Date: 2003
    Post Count: 7

    caz_in_perth

    I can recommend a reputable non-bank financial institution that may be able to help you?

    golfer

    [email protected]

    Profile photo of CreminCremin
    Participant
    @cremin
    Join Date: 2003
    Post Count: 105

    Try going through a mortgage packer not a mortgage broker. There is a big difference between the two, basically packers tailor the loan to suit your needs and pull all the strings to get you what you want. A broker will look at your assets and income and say yes or no. Simply brokers get so much business they don’t really care about the end result.[:D]

    Here for a good time not a long time, just do it!.

    Profile photo of caz_in_perthcaz_in_perth
    Participant
    @caz_in_perth
    Join Date: 2003
    Post Count: 29

    Thanks everyone

    Rusty073, the 20% is needed to avoid mortgage insurers which most lenders go to if the loan is over 80% of the property value, we have been told by several lenders and brokers that the insurers won’t go for a recent change in employment (even though we’d previously been told that within same industry it was ok – seems what you are told in theory is not what you are told when it comes down to actually applying!).

    Terry it looks like Homeside are the go. We found a good broker who has really worked hard on this one and she has come up with a product for uni graduates where they will waive the MI requirement. It has a good variable rate but over 18 years. It will hurt our cash flow for a short while but at least we’ll build equity rather than pay high interest.

    Fingers crossed [:)]

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