Broker Advice - New No Deposit Loans

Viewing 7 posts - 1 through 7 (of 7 total)

battz71
Participant
@battz71
Join Date: 2003
Post Count: 95
September 9, 2003 - 5:53 am
Seeking some advice from any brokers out there on the “new” no deposit mortgages being offered. I understand that you must still have the LMI and application fee up front, but are there any other catches?
Are they very strict on which areas they will lend in, ie only CBD?
I would like to run my current financial situation past someone to see if I can get finance.
Regards,
Battz
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
September 9, 2003 - 6:07 am
Hi battz
You might be referring to the new Pepper Home Loans product with a variable rate of 7.95%. In broad terms minimum loan is $100,000, maximum loan depends on where you are but upto $500,000 in Sydney.
Capital cities and approved regional centres vary from State to State but a lot of small towns (pop over 10000 are covered). $325 Application fee, legal fees upto $350. Establishment 1% and mortgage insurance cover equivilant to 2.5% of loan amount (approx)
Max Land Size is 2.5ha.
Happy to crunch some numbers for you if you want to email me some details.
Cheers Richard
[email protected]
There is no such thing as a problem.
Just a solution waiting to be found
Richard Taylor | Australia's leading private lender
battz71
Participant
@battz71
Join Date: 2003
Post Count: 95
September 9, 2003 - 6:33 am
Thanks Richard,
The no deposit I was referring to was from one of the major lenders, and i believe there was NO interest rate penalty. Are you aware of this?
Cheers,
Battz
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
September 9, 2003 - 6:47 am
Battz,
You might be referring to the St George No Deposit product.
Interest rate of 6.87%
App fee of $700 and $10 pm.
There is also a fee of 2.5% of the purchase price. This must be genuine savings over six months.
No LMI is payable.
Must be within metro areas. They will lend in regional centres.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985
Melanie
Member
@melanie
Join Date: 2003
Post Count: 382
September 9, 2003 - 6:52 am
St George still want to see 3% of genuine savings, which is about what you need to cover other costs eg stamp duty, legals etc I thought??
There are a few 97% products as well – Bank West, St George, ING etc and they have a slightly better rate.
I’d be happy to look over your finances if you’d like Battz.
[]
Mel
[email protected]
0438 548 235
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
September 9, 2003 - 7:02 am
Some banks will allow you to capitalise LMI so that the 95% lend effectively becomes about 97%.
I think this is what Mel is referring to. I’d let her take a look and make some recommendations – all you have to lose is an hour of your time!
I hope you find what you need.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
September 9, 2003 - 1:16 pm
My company has its own 100% lend product. the interest rate is 6.45%, and some of the condition are;
Owner occupied only
max $300,000 lend
No units in buildings greater than 4 stories
no defaults
need 12 months of continuous employment
need 3% genuine savings
The LMI fee is 2.6% (!)
etc
As you can see it is very tough to qualify, as the risk is much higher. beats the Pepper product though.
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au