Just want to find out if there is
anyway to borrow 100% but not paying
mortgage insurance?thanks,
You can do it if you have additional security such as another property.
There are other 100% lend products but the fees you pay with those are nearly as much as the LMI.
What do the other brokers have to offer?
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985There are plenty of ways to borrow 100% without paying LMI. Buying under market is just one.
Another way, is You could borrow the 20% deposit from elsewhere (friends etc). That is the only way really.
BTW on the 100% lends out there the mortgage insurance is about 2.6% of the loan amount!
Terryw
Discover Home Loans
North Sydney
[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
There are plenty of ways to borrow 100% without paying LMI. Buying under market is just one.Quote:There are plenty of ways to borrow 100% without paying LMI. Buying under market is just one.
[/quote.
sorry about that, this is insders reply ..!!!
my question to insider ,what do you mean by buying under market?,buying a property that is for sale under market value,or what . I am currently living in Perth and as far as I have seen all the propery,s are over valued..Buying under market is certainly a strategy.
I suggest you will need a good broker like Terry as most lenders will only lend on the lower of the valuation or purchase price. Unless of course there is a compelling reason such as a very extended settlement or a family discount situation.
Borrowing 20% from family then refinance to recover that down the track is an idea.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Also buying under market value these days is incredibly hard.
You can get creative, but then as a newbie that in it’s self is really hard.
Cheers
Leigh K[
]Read, learn, grow but most of all do it.
I agree buying under market at the moment is very hard. The best way to do it is borrow the 20% deposit from someone & then as Terry said refinance it out down the track. That is exactly what I am going to do when I go & buy buy& holds in NZ.
Redlilia,
You also can use your parent equity as 2nd security to borrow more than 100%. And down the track when your IPs reach such amount you can ask the bank to release the 2nd security.
Kind regards
Chandara
[Keep going, you’re nearly reach the end of financial freedom]Redlilia
Insider is correct. Buying undervalued is one way however…Many Banks consider the selling price as the “market value” and won’t finance at the “lower than market price” valuation amount. .
If you are an established customer or use a broker however, its much easier.
The other problem is that when you buy undervalued you need to be careful of what you say to the vendor prior to signing contracts as you may spook them into not exchanging contacts.
Also make sure that the contracts dont have any loopholes that allow them to rescind for some obscure reason when you know its really greed kicking in when they find out that their selling price is too low.
Regards
Rob [8D]
[email protected]You can also find any hidden assets on the property you want to purchase; say on a deceased estate there is an old vintage car in bad condition in the back of a garage now to the right person, a car enthusiast its worth money and you may get them to give a deposit and when the house is yours they take it away, also works with antique furniture.[8D].
Or on a large block check if you can subdive it to raise money, you just have to have a settlement on the same day.
I take no credit for these they are based on Robert Allens book “Nothing Down”
Is it true that you can get back some of your LMI if you have payed LMI for a loan?if so,when are you able to get some of the LMI back?
Sala55
Sometimes you can get some of it back.
Good luck trying though. I tried with Rams and was so worn out in the end I gave up.
I swore they wouldnt wear me down but they did…and I decided to get on with my life ans let it go.Everyone tells me I should have demanded action but its easy to spruke what you would do in another mans shoes. The facts of life are that sometimes the time and effort (and greef) isnt worth it.
Good Luck anyway
Ragards
Rob [8D]
ST George no deposit loan is available. However there is a 2.5% fee which must come from genuine savings. There is no LMI though.
LMI may be claimed back when a valuation satisfactory to the bank shows the LVR has dropped below 80%.
It is then claimed back from the bank.
I have never done it but I have also heard that it is difficult to get. There is always the banking ombudsman if needed.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Quote:Just want to find out if there is
anyway to borrow 100% but not paying
mortgage insurance?thanks,
borrow the 20% through a personal loan then purchase property then before the mth is out refinance the whole loan
Mortgage Hunter
I’m sorry,as you seem like a great guy, but about St George I believe you are incorrect.
The 2.5% genuine savings needed is to cover LMI, which is 2.5%.
Also, you can use your FHOG instead of genuine savings. You just have to service at a higher rate, meaning less borrowing power.
There is another 100% product just released, where you don’t need genuine savings, no min income, no min assest.
They also accept FHOG to cover costs. LMI 2.5%
They generally lend a fair bit higher than St george, but rate is higher too, 7.9%.Mortgage Hunter
I’m sorry,as you seem like a great guy, but about St George I believe you are incorrect.
The 2.5% genuine savings needed is to cover LMI, which is 2.5%.
Also, you can use your FHOG instead of genuine savings. You just have to service at a higher rate, meaning less borrowing power.
There is another 100% product just released, where you don’t need genuine savings, no min income, no min assest.
They also accept FHOG to cover costs. LMI 2.5%
They generally lend a fair bit higher than St george, but rate is higher too, 7.9%.Also this product is available for 100% REFINANCE as well.
[email protected]Picja,
Give them a call mate – I did. The fee is not for LMI. These loans are not mortgage insured.
Bet you a beer!
They also advised me that the 2.5% mustn’t be gifted. We didn’t discuss the FHOG so I will take your advice on that one.
Unless the St George lady got it wrong [
] Give her a call on 133 555.Actually the fixed rates on this product are quite reasonable – check their website.
Cheers
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985picja1,
Re the 100% finance loan at 7.9%, is that one through Liberty that was in the latest Money magazine?
There always seems to be a catch with these 100% loans, either higher interest rate or requiring minimum asset.
Can anyone tell if there is one out there with no catches?
Cheers,
Battz
]
] Give her a call on 133 555.
The topic ‘How to borrow 100% without paying mortgage insuran’ is closed to new replies.
