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  • Profile photo of BonbeachBonbeach
    Participant
    @bonbeach
    Join Date: 2004
    Post Count: 214

    Does anyone know of anybody doing 95% Lo-doc loans?

    If so, what is the interest rate, and is it IO or P&I?

    Dev* [kid]

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    95% low doc 8.99% this rate reduces after 3 years.
    P&I with 5 years interest only, Cheers.

    Regards
    Steven
    Mortgage Broker

    Mobile Mortgage Market
    Ph: 0402 483 216
    [email protected]
    http://www.mobilemortgagemarket.com.au

    PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

    Profile photo of BonbeachBonbeach
    Participant
    @bonbeach
    Join Date: 2004
    Post Count: 214

    8.99% hrmmm

    I guess its risky for them… interesting though…

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    Steven, that is a good rate. Would this product be available for owner occupiers only? I did one a while back for someone with a small blemish and the rate ended up over 10%.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

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

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

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    Hi Terry,
    Its available for investment and owner occupied,
    No monthly fees, up to 4 splits and has a redraw facility, Cheers.

    Regards
    Steven
    Mortgage Broker

    Mobile Mortgage Market
    Ph: 0402 483 216
    [email protected]
    http://www.mobilemortgagemarket.com.au

    PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    devil

    Steven and I use the same lender i am sure and i believe that 8.99% is a good rate for someone who cannot prove any form of income through the traditional channels.

    On wrap deals i charge 9.25% and never take on a client that can’t prove his income and that rate is charge don 125% of the purchase price.

    All in all at 8.99% thats say 2% above the variable rate of interest for 3 years i don’t think you can complain. The alternative is to do you books upto date and then declare your income.

    Cheers Richard
    [email protected]
    http://www.yourstatefinance.com

    IP funding and US property finance
    our speciality

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    Profile photo of BonbeachBonbeach
    Participant
    @bonbeach
    Join Date: 2004
    Post Count: 214

    I guess I didnt put much thought into what I actually expected it to be, just asking out of interest (so to speak). I am going through one of those mid life crises that you have (at 25 mind you) where I am looking at many possibilities. :)

    Is there a maximum loan amount for this loan? (some lo docs used to be under 500k or under $1 mil)

    Who is the lender and their LMI company? (is there LMI on a lo-doc? I would assume so)

    Dev* [kid]

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    Hi Dev,
    The max is $1million for investment and $500K for owner occupied,
    The lender is Pioneer, LMI is applicable but it’s not through Gemco or PMI, this may be beneficial to those who are maxed out or have high exposure with Gemco or PMI.

    DEFs 2.5% 2.0% 1.5% in years 1 to 5
    Companies and Trusts are ok, & up to $125K cash out, Cheers.

    Regards
    Steven
    Mortgage Broker

    Mobile Mortgage Market
    Ph: 0402 483 216
    in[email protected]
    http://www.mobilemortgagemarket.com.au

    PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

    Profile photo of BonbeachBonbeach
    Participant
    @bonbeach
    Join Date: 2004
    Post Count: 214

    Might just work if I can go up to $1 mil… nice

    Will keep it in mind, thanks!

    Is there anyone else doing this or is this the best deal for this sort of thing at the moment…?

    If they saw my last 2 years tax returns would that help (maybe slightly lower IR?)

    I have just left me job you see and no longer have the PAYG income. My income will now be (soon) coming from somewhere else…

    Cheers

    Dev*[kid]

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    Hi Dev,
    Standard finance at a lower rate may be an option, providing your current income is sufficient to service existing debt and the proposed new loan,

    Providing your financials on a Low Doc application will have no effect on the interest rate, the rational being if your financials were up to date and sufficient to service the loan then there would be no reason to use a low doc product.
    However, certain lenders will reduce the rate on there low doc products after a prescribed period of time, the proviso is usually a good repayment history and or providing financials, Cheers.

    Regards
    Steven
    Mortgage Broker

    Mobile Mortgage Market
    Ph: 0402 483 216
    [email protected]
    http://www.mobilemortgagemarket.com.au

    PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

    Profile photo of BonbeachBonbeach
    Participant
    @bonbeach
    Join Date: 2004
    Post Count: 214

    Sorry for the 10,000 questions…

    Would the lender ‘Pioneer’ be one of those that reduces the IR to a standard variable rate after,say, 3 years with full financials?

    If not, are there any significant penalties for early repayment of this sort of product?

    One more… How difficult is it to get a lo-doc approved with a LMI company when you are talking around the 900k – $1 mil mark?

    Dev* [kid]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Yes Pioneer does reduce its rate after a 3 Year period.

    I assume you are referring to an <80% lodoc lend?
    If so $900K – $1Million is obtainable.

    If you want to give us all some actual figures we can give you more information.

    Cheers Richard
    [email protected]
    http://www.yourstatefinance.com

    IP funding and US property finance
    our speciality

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of BonbeachBonbeach
    Participant
    @bonbeach
    Join Date: 2004
    Post Count: 214

    4 properties will value at around 900k plus, but to be safe lets go on 900…(total)

    Intention is to prove figures in 12-36 months time and either change loan products from that lender to another (hence my question about early pmt penalties) or stick with them on a reasonable rate… -preferably the standard variable rate

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Ok Devil

    If we are looking at 95% on each then Pioneer have a maximum loan of $1Million.

    The early repayment penalties vary dependant on which year you pay the loan out.

    2.5% down to 1.5% in years 1-5.

    If you stay in for 3 years then your 8.99% rate will fall anyway.

    Unfortunately, at that level of borrowing they need to make up there money some how.

    Cheers Richard
    [email protected]
    http://www.yourstatefinance.com

    IP funding and US property finance
    our speciality

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    The rate reduces after 3 years, the break costs are 2.5% in year 1 2.0% year 2-3 and 1.5% in year 3-5,
    If you are looking to reduce the rate before the 3rd year period or refinance in a short timeframe then this product is probably not the best option, due to the DEFs. Cheers.

    Regards
    Steven
    Mortgage Broker

    Mobile Mortgage Market
    Ph: 0402 483 216
    [email protected]
    http://www.mobilemortgagemarket.com.au

    PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

    Profile photo of BonbeachBonbeach
    Participant
    @bonbeach
    Join Date: 2004
    Post Count: 214

    Thanks guys for that, much better understanding now.

    Dev* [kid]

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