Hi all,
I recently purchased a new apartment in the Sydney CBD area using a 5% LMI scheme. Total purchase price was $440k meaning deposit was $22k. Adding stamp duty fees and other ancillary expenses, total "money down" comes to around $40k, which is a pretty significant outlay.
This is my 2nd investment property – I purchased another investment property back in 2005 with an investment partner.
I was wondering if anyone has experience with purchasing property with no money down. I am considering purchasing another apartment later this year at around the $400k mark, and pay only stamp duty fees with no need for deposit – I would like to get 100% of the property value from the bank. This means by out-of-pocket expense would be roughly $20k, and not $40k as per my most recent property.
Any experiences people could share regarding ways to achieve this would be very helpful – e.g. how to work with banks, lenders, and any useful investigations you have done?
Many thanks.
AjayBanks have tightened up on 100% loans – how are you going to sell it to them?
As SNM has mentioned 100% loans are a thing of the past.
In fact bar the odd lender 95% loans are also a dying breed.
Thing the days of funding it with NMD have been and gone for the near future unless you have cash or equity to gear against.
Richard Taylor | Australia's leading private lender
Scott No Mates wrote:Banks have tightened up on 100% loans – how are you going to sell it to them?Scott No Mates – are there any methods to try and sell it to banks? From my perspective, I would use the fact that the apartments I purchase pretty much cover themselves in terms of rent (basically breakeven) and my salary plus the fact that I have proven I can easily make repayments – I own another property with a partner which I bought in 2005.
Any other ideas? I know there are standard quantitative methods the banks use such as base salary however are there any qualitative ways to sell this? I am OK to pay higher interest rate as long as it is not excessively high.
Cheers
AjayAjay
Nothing you can say or do will encourage the Banks to lend you 100% of the purchase price / valuation as they simply cannot get mortgage insurance cover on the deal.
You can negotiate all you like with the 2 mortgage insurers and if you crack them let me now as i could give them dozens of deals a week. As i say even at 95% LVR you are pushing it uphill with most now.
Richard Taylor | Australia's leading private lender
I recently received a deal at 95% LVR inc mortgage insurance.
Are there alternative finance options aside from the regular top tier banks such as CBA and Westpac?
Cheers
AjayUp until 2 weeks you could have got 100% but those days have passed.
There are many lenders away from the majors but they are still limited in lvr.
Richard Taylor | Australia's leading private lender
In fact my husband owns a house wherein v r living nicely but i have sold an house fvg myself and have to invest for better returns and to save tax as I am working woman
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