All Topics / Finance / Whats the most painless way to get my title back

Viewing 12 posts - 1 through 12 (of 12 total)
  • Profile photo of MTRMTR
    Participant
    @marisa
    Join Date: 2004
    Post Count: 663

    Hi all

    I have a messy problem.

    IP 1 – Loan – $295,000 – Current Value around $450,000
    Fixed interest rate of 6.99% (lo doc)

    IP2 – Loan – $400,000 – Current Value around $450,000
    7.12% (lo doc)

    The above 2 loans are with the same lender.

    At the time to avoid LMI I used another property as security which is owned outright and approx value $500,000, currently the lender has the title which I would like back as may actually look at selling this for another deal.

    The bank advised that I can use another property as security and take the title back.

    I would like to use IP1, I would probably prefer to pay LMI and take title back at this stage.

    I hope this is making sense and someone can give me some ideas on what may be the way to go as I know this will probably be an expensive exercise.

    Cheers, Marisa

    (Hard work never killed anyone, buy hey why take a chance)

    Profile photo of JohnSmithJohnSmith
    Member
    @johnsmith
    Join Date: 2006
    Post Count: 93

    You have total debt of $695,000

    So a 80% Lo Doc loan on both would cover it

    IP1 Loan 360,000 Value 450,000

    IP2 Loan 360,000 Value 450,000

    and should release your other title.

    If both are with the same bank, tell them that is what you want to do, or take your business elsewhere.

    If different banks, do a variation on the loan on IP1 and get access to the other funds.

    Tell the bank for Ip2 that you will be reducing the LVR to 80% and want your title back, or otherwise you will take your business elsewhere.

    Regards
    John

    Inspired Finance
    (02) 9944 7776

    [email protected]
    http://www.inspiredfinance.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi Marissa

    I agree i cannot see the problem.

    The security your current lender is holding appear sufficient on a standalone basis with the need to hold your unencumbered investment property.

    Your current LVR is 77% so i can see no reason why they would need the additional security. If reducing the LVR to 76% alleviates LMI then this maybe an option.

    If you dont wish to sell IP 3 then why not set up a lodoc Line of credit against it and utilise this to increase your current borrowings.

    As John mentioned if the current lender says no take your business elsewhere. Even with yesterdays 25 basis points increase there are many competitive lodoc rates around.

    Cheers

    Richard Taylor
    Residential & Commercial Finance Broker.
    Licensed Financial Planner. Ph: 07 3720 1888
    [email protected]
    Looking for life cover – We Guarantee to beat any quote you have in writing.

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

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

    Profile photo of MTRMTR
    Participant
    @marisa
    Join Date: 2004
    Post Count: 663

    Thank u Richard and JohnSmith

    I initially contacted the bank and spoke to 3 different people and got 3 different answers. I was hoping to get an idea but gave up at the end.

    I appreciate your help.

    Great to have all this expertise on this forum.

    Cheers, Marisa

    (Hard work never killed anyone, buy hey why take a chance)

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

    Just ask for a “release of security” form.

    Terryw
    Discover Home Loans
    Parramatta
    [email protected]
    Sign up to my mailing list.
    Just send me a blank email, with “subscribe” in subject line.

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

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of elkamelkam
    Member
    @elkam
    Join Date: 2006
    Post Count: 722

    Hello

    I thought that for a lodoc loan the maximum LVR was 60% (without LMI) At least that is what I was told by my lender, the ANZ bank.

    Are they non competative in this area?

    Thanks
    Elka

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

    That’s the case with ANZ, but not all lenders.

    Terryw
    Discover Home Loans
    Parramatta
    [email protected]
    Sign up to my mailing list.
    Just send me a blank email, with “subscribe” in subject line.

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

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    No Anz Bank are not competitive in the lodoc market.

    Cheers

    Richard Taylor
    Residential & Commercial Finance Broker.
    Licensed Financial Planner. Ph: 07 3720 1888
    [email protected]
    Looking for life cover – We Guarantee to beat any quote you have in writing.

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

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

    Profile photo of GiovanniGiovanni
    Participant
    @giovanni
    Join Date: 2004
    Post Count: 27

    No ANZ are not competitive on anything!

    Sorry if I offend any ANZ employee or customer!

    Gio

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

    It depends on the LVR. I think ANZ have one of the cheapest rates if under 60% LVR, and the loan is on the breakfree package with the 0.7% discount.

    But, they will not do low doc loans for companies or trusts.

    Terryw
    Discover Home Loans
    Parramatta
    [email protected]
    Sign up to my mailing list.
    Just send me a blank email, with “subscribe” in subject line.

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

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of MTRMTR
    Participant
    @marisa
    Join Date: 2004
    Post Count: 663

    Just a couple more questions……

    I am seeing a shift in WA market, what if security comes in under 70%LVR???

    Can I top it up I have a couple of LOC?
    Do most lenders allow this?

    I do have concerns when it comes to getting properties valued as sometimes they come in way under. I imagine many have had similar scenario.

    I had another property last year come in at $100,000 below market value, it was frustrating as at the time had to accept this due to urgency of contract. Also the broker I was then dealing with at the time also said I would do nothing about this.

    I would be interested on experiences regarding this.

    Cheers, Marisa

    (Hard work never killed anyone, buy hey why take a chance)

    Profile photo of L.A AussieL.A Aussie
    Member
    @l.a-aussie
    Join Date: 2006
    Post Count: 1,488
    Originally posted by giovanni:

    No ANZ are not competitive on anything!

    Sorry if I offend any ANZ employee or customer!

    Gio

    Don’t be sorry about offending any bank – they have thick skins, big profits and love to call in their funds if you default. Be loyal unto thyself.

    Cheers,
    Marc.
    [email protected]

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