All Topics / Finance / Has 95% LVR returned yet?

Viewing 16 posts - 1 through 16 (of 16 total)
  • Profile photo of 50mill50mill
    Participant
    @50mill
    Join Date: 2003
    Post Count: 91

    I live in Perth and the average price of a 3 bedroom house, within 10 – 20km of the cbd, and close to amenities is $350 – $450k.

    This means i need to have saved approx $30 – $40k before banks will consider giving me a mortgage, in the current economic climate anyway.

    I heard that banks are considering returning to the 95% LVR they recently offered prior to the GFC?

    does this mean i will only need to save up $15 – 20k instead of the tedious $30 – $40k.

    I hope so, as it will save me sooo much time slaving away on the 40 – 50hr week.

    Does anyone know anything 'bout this???

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

    95% loans never totally went away. A few banks continuted to offer them and now more banks are reintroducing them. There are even 100% loans, and one which is 103% (- or 105%?? I started a thread on it a few weeks ago)

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    https://terryw.com.au/
    Email Me

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

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

    As Terry said but the criteria for getting a 95% lvr has certainly toughened.

    If you are a clean skin 1 employer and 1 residential address in the last 3 years no external debt other than a credit card you should be ok.

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

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of 50mill50mill
    Participant
    @50mill
    Join Date: 2003
    Post Count: 91

    What exactly do you mean by 'clean skin?' – ive been in my current job 7 months, and ive been renting the same flat for 2 yrs 8 months.

    Ive only got $1000 saved for a deposit so far. However i have $10, 000 saved in my super. i want to use it as part of my deposit before it flutters away in a sharemarket crisis, i just dont know who to speak to…

    Any ideas anyone?

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

    How are you going to access your Superanuation ?

    With only 7 months in your current employment it is going to be hard unless you have been in the sme line of work for 3 years in total and ideally 3 years in the same residence would have been prefered.

    $1000 savings is not going to be anywhere enough as that probably wont even cover the mortgage registration / transfer fees in WA let alone conveyancing costs etc etc.

    The FHOG will not be counted as genuine savings so you will need to have a lot more over a 3 months period.

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

    100% Investment Finance now available on selected properties. Email us for further information.

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

    maybe he is 64 years old?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    https://terryw.com.au/
    Email Me

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

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

    Terry very true but me thinks he would fail on credit scoring then full stop lol.

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

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of ModeratorModerator
    Moderator
    @moderator
    Join Date: 2010
    Post Count: 39

    People contributing to these forums have varying levels of knowledge and experience.  They also find themselves in varying financial positions. 

    Although posts in this forum are not a substitute for financial advice it IS a place for people to ask questions and receive feedback in a respectful, supportive and encouraging way.

    – Moderator

    Profile photo of 50mill50mill
    Participant
    @50mill
    Join Date: 2003
    Post Count: 91

    haha nice one,  im actually 30 years off 64.
     
    I have spoken to a group called  – superannuation recall. Apparently, according to them, they are able to help me access my super. then i can use it for an investment property deposit or start a business.

    Now i may seem a tiny bit naive but this scheme sounds a little dodgy to me. So I didnt go thru with it.

    Im caught in this situation again.Its crap really. Really. 
     
    Ive allready used the first home owners grant in '03. ive made 2 purchases and 2 sales so far in my property investment journey. Now im back to square one, unfortunately.

    thanx guys

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

    I had a look at the website and they seem to be setting up self managed super funds. Maybe you misunderstood what they were doing, but it probably involves transferring your super to a fund you set up your self and then that fund investing in property. You are still faces with having your super locked away until retirement, but you can control it more.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    https://terryw.com.au/
    Email Me

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

    Profile photo of 50mill50mill
    Participant
    @50mill
    Join Date: 2003
    Post Count: 91

    hey thanx, yes true – set up a SMSF then use that to deposit investments. However i'll be faced with approximately 2k p.a running costs. yes i understand.

    Im better off managing my super better, just means more research.

    In terms of coming up with a deposit im going to have to do something creative, just to cut the time in half. Maybe buy a cheap old property out woop woop just for the equity or somethin similar.

    Probably need to expand my knowledge/mindset a bit more, as opposed to hitting the niteshifts and working longer hours/more jobs.

    thanx team

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

    Bankwest has just reintroduced their 95% LVR loan too. LMI can be captialised too.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    https://terryw.com.au/
    Email Me

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

    Profile photo of itsandrewitsandrew
    Participant
    @itsandrew
    Join Date: 2007
    Post Count: 294

    Hi Terry,

    Is it a good product (rates, application fees etc)?  What are their break costs like?

    Andrew

    itsandrew

    Go as far as you can see and you will see further.

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

    Is it a good product (rates, application fees etc)?  What are their break costs like?

    Andrew

    Not sure sorry. You would have to check with your broker.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    https://terryw.com.au/
    Email Me

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

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

    Premium home loan: Save $700 (application fee waived until 31/12/2010)
    Currently 6.70% life time discounted variable with no application fee (includes 1 standard Val up to $220 inc gst)
    No Annual Fees
    No Monthly Fees
    No Break Costs
    Extra Repayments
    Option of a 100% Offset available with our Lite Direct Transaction Account $3.99 monthly fee
    Free On-Line Redraw to a bankwest account, pay anybody also available
    Up to 90%LVR Plus Capped LMI with no genuine savings required
    Up to 95% LVR Plus Capped LMI with 5% genuine savings over 3 months
    For the purchase, refinance or construction of an Owner Occupier or Investment (personal investment only) residential property
    Minimum Loan Size $20,000 when the customer opens a Bankwest Transaction Account, no transaction account required with aggregate personal home loan borrowings of $300,000 or more
    Interest Only up to 5 years
    Existing home loan customers can transfer from another product to the Premium, $495.00 Transfer fee applies

    Premium Select Home Loan Save $700 (application fee waived until 31/12/2010)
    Currently 6.60% life time discounted variable with no application fee (includes 1 standard Val up to $220 inc gst)
    No Annual Fees
    No Monthly Fees
    No Break Costs
    Extra Repayments
    Option of a 100% Offset available with our Lite Direct Transaction Account $3.99 monthly fee
    Free On-Line Redraw to a bankwest account, pay anybody also available
    Up to 90%LVR Plus Capped LMI with no genuine savings required
    Up to 95% LVR Plus Capped LMI with 5% genuine savings over 3 months
    Minimum Loan Size $250,000 with total personal home loan borrowings of $750,000
    For the purchase, refinance or construction of an Owner Occupier or Investment (personal investment only) residential property
    Interest Only up to 5 years
    Existing home loan customers can transfer from another product to the Premium Select, $495.00 Transfer fee applies

    Refinances are limited to 90% plus capitalise LMI
    90% plus capitalise LMI requires no genuine savings, gift, sale of asset etc can be considered
    Above products are also available at lower LVRs

    Cheers

    Yours in Finance

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

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of itsandrewitsandrew
    Participant
    @itsandrew
    Join Date: 2007
    Post Count: 294

    Thanks Richard.

    itsandrew

    Go as far as you can see and you will see further.

Viewing 16 posts - 1 through 16 (of 16 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.