I am looking at purchasing a property in Cannonvale QLD 4802 for about $900,000-$950,000, and wish to use a 10% deposit. Are there any lenders who will lend in this suburb?, I have genuine savings for the deposit plus funds to cover purchasing costs. Most likely I will rent the property out for 12 months or so before moving into it. I have no other property, so no equity available.
ThanksSubject to valuation and serviceability should have no problems.
Richard Taylor | Australia's leading private lender
The Location and post code are acceptable to most lenders and mortgage insurers
Regards
Craigthanks for that
are 100% loans available for this postcode and at that level?
what would be the lowest deposit I could get away with?
I've just seen this info pack advertised:
My Super Quick Loan Secrets
Easily borrow up to $1 million over night. Proven system to make you more attractive to lenders.https://paydotcom.com/r/23342/jazza81/3003200/
I've never used it, but thought it might be of interest to some of you guys trying to get finance.
Cheers
MEGABUX
You just gotta wonder……
You just gotta wonder……
Joshua
Perhaps Gabriel is a Licensed Financial Planner but if he is not is treading on dangerous ground offer financial advice to you when i assume he not done a needs analysis.
In saying this not sure how many capital protected funds are paying 15% per annum in the current climate.
My suggestion would be to invest the balance in an offset account earning circa 8.5% per annum guaranteed Tax free.
I also dont believe you will find too many lenders do 95% or over on a 900K lend.
LMI on over 95% would be circa 2.75% as a rule of thumb.
Richard Taylor | Australia's leading private lender
Hi Richard
Thanks for that. I am guessing it might be a better idea to use a 10% deposit and do a 90% lend, the LMI is too high on a 95% loan, or higher. What is the LMI on 90%?
In the past I have had a St George 100% loan, there was an equalisation fee, rather than LMI. Im not sure if there is a maximum lend on this loan?, but the interest rate was just the normal rate. I got this loan in 2003, I think there are more lenders on the market now that do these types of loans?.
Thanks
Joshua
The SGB 100% loan has a max loan of 500K and the post code would not be acceptable.
Richard Taylor | Australia's leading private lender
I checked on the pmi website for postcode 4802, says max lend $750,000 for 90% loan, that would give a purchase price of $830,000…Am I understanding that correctly? or is there another mortgage insurer?
Hi Josh
Yes there are a couple of other mortgage insurers.
95% maybe possible with 1 or 2 lenders as long as the rest of the deal is strong.
Richard Taylor | Australia's leading private lender
ok cool
how much would be LMI then?
Joshua
You may not want to know…………… be circa 2.42%
Richard Taylor | Australia's leading private lender
ouch
thats really expensive, dont you think?
someone was telling me that they invested their superannuation money into property, they used what was in their fund as a deposit, and had the super payments paid into the loan account together with the rental money from the property, and that was enough to meet the obligations.
i think their accountant prepares an annual superannuation return, or something like that
is that possible?
i have about $50,000 in super
thanks
Josh
Hi joshua, yes you are able to purchase property in the name of your SMSF and borrow funds to support the purchase.
The fund is able negatively gear the property and claim any depreciation and building write off. As the loan is a non recourse loan mortgage insurance is not available and the LVR is reduced.
You would need more than $50K in your SMSF in order to purchase a property.
Richard Taylor | Australia's leading private lender
what is the LVR reduced to?
are u able to use a cash deposit in addition to the $50k in super?
what is a non recourse loan?
thanks!!
Might get 80-85% depending on a few factors.
No you would need to make the constribution into your SMSF an then borrow in the Fund name.
A NR is a loan where if it falls over the only security the lender has is the property itself. They can't recover any loss from any other assets you may own within the fund.
Richard Taylor | Australia's leading private lender
thanks Richard
is it harder to borrow funds in the Fund name?, like does the lender take into consideration ongoing employee super contributions, etc?, do they still do a credit check, even though its a fund?
is it easy to just put money into your super fund?, or do u make the contribution when you start the new fund?
are there maximum amounts you can borrow?
sorry for lots of questions
josh
Josh
No credit checks required as the loan is in the Super Fund.
There are only a couple of lenders offering such a product at the moment.
You are restricted in the amount of contributions you can make each year.
A couple of lenders i have spoken to have a $1Million max loan.
Richard Taylor | Australia's leading private lender
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