Forums / Getting Technical / Finance / 90-95-100% finance

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  • Profile photo of keikokeiko
    Participant
    @keiko
    Join Date: 2008
    Post Count: 513

    Which banks are currently doing high LVR and that are loaning the money at these LVR

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    None will do 100%.

    There’s quite a few going 95% lends for owner occupied purchases and a few are doing them for investment purchases. ING recently increased their LVR on investment and owner occupied purchases to 95% + LMI. The great thing is, you don’t have to be an existing customer, which is often a requirement with other lenders (particularly the Big 4).

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Profile photo of Mick CMick C
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    @shape
    Join Date: 2010
    Post Count: 1,099

    Your in luck; the 95% product has only been re-introduced 2-3 month ago…and there are plenty on the market!
    ING, suncorp and CBA( must be existing mortgage customer) just to name a few that offer the 95% lend.

    Homeloans LTD offer a 95% + LMI lend = so really its around a 97-98% LVR.

    I get flooded with emails with clients asking if they have 20k saved up does that mean they can buy a 400k place? – the answer is NO. Because the Stamp duty and another legal cost is still payable ..and this can cost up to $13-$18k; BUT of course this will does not apply to First home owners who can apply for the FHOG

    Regards
    Michael

    Mick C | Shape Home Loans
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    Profile photo of jacqui_03jacqui_03
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    @jacqui_03
    Join Date: 2010
    Post Count: 142

    I thought CBA only were lending 95% for owner occupied not investment?

    Profile photo of Mick CMick C
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    @shape
    Join Date: 2010
    Post Count: 1,099

    Correct CBA’s 95% is for OO.

    The post didn’t state if he/she was applying for as a OO or IP….so i gave general information only.

    But for 95% Investment – NAB ( existing clients only)

    Regards
    Michael

    Mick C | Shape Home Loans
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    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,010

    I have done dozens of 95% LVR with NAB Broker where they have not be clients of the Bank.

    Need to be 4 star broker but can be done.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    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 keikokeiko
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    @keiko
    Join Date: 2008
    Post Count: 513

    it will be an investment property, but if it comes down to it I could buy it and move in

    Profile photo of HomeLoanExpertsHomeLoanExperts
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    @homeloanexperts
    Join Date: 2007
    Post Count: 43

    You can also consider a guarantor loan if your parents are happy to provide security for your loan. This is only an option to consider, it is not suitable for everyone. If you do take this approach then you should have a plan to remove the guarantee as quickly as possible & should consider taking out income protection, life & TPD insurance.

    This can allow you to borrow 100% plus costs for owner occupied or investment purposes without paying LMI.

    Profile photo of Mick CMick C
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    @shape
    Join Date: 2010
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    You can do it as a 95-100% guarantor  Loan. After 2-3 years when you get home re-valued hopefuly it has gone up by 10-20% then your parents can be removed from the guarantor loan.

    Regards
    Michael

    Mick C | Shape Home Loans
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    Profile photo of keikokeiko
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    @keiko
    Join Date: 2008
    Post Count: 513

    Thanks guys
    I am looking at buying a couple of houses and only putting the least amount of deposit up as possible.
    I could go 20% but I want to try something different and see if it works out

    Profile photo of Mick CMick C
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    @shape
    Join Date: 2010
    Post Count: 1,099

    If your after a "couple " of purchase..for wealth creation etc…
    You can:

    1. Buy one at 80% LVr
    2. Do some reno- and after  6-12 month it should go up in value if thje right area is bougth and the right renovation are done- get it re valued….hopefuly this takes your inital LVR down to 65-70%LVR

    3. Top up the loan,…and use the extra funds to Purchase your next one…using 10% of your own money and 10% borrowed.

    then repeat.

    Regards
    Michael

    Mick C | Shape Home Loans
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    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
    Join Date: 2010
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    It all depends on Keiko’s individual risk profile.

    Given that he/she asked about high LVR loans in the original post I’m assuming that he/she is wanting to take an aggressive approach towards investing.

    If that were the case, that 20% deposit could be spread-out across multiple smaller deposits to secure multiple properties within a short space of time. By taking out higher LVR loans (90 or 95 +LMI) and using more of the banks money, Keiko could commence building the portfolio quicker.

    They could also add value to these IPs, with the potential (depending on the future value) to tap into some equity later on.

    Obviously, this approach wouldn’t suit everyone, particularly cautious/risk adverse investors would would prefer to avoid LMI and contribute a larger deposit.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Mick CMick C
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    @shape
    Join Date: 2010
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    My post was NON advice…being a forum we can only  give ideas and options….but yes as Jamie mentioned it may or may not suit everyone including Keiko's need..

    If you want personzliaed" advice"- email / call the right people ( accountant, MB, FP…)

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
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    Same Banks. Better Rates. Served With a Passion.

    Profile photo of BigTeddyBigTeddy
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    @bigteddy
    Join Date: 2010
    Post Count: 11
    Jamie M wrote:
    It all depends on Keiko's individual risk profile. Given that he/she asked about high LVR loans in the original post I'm assuming that he/she is wanting to take an aggressive approach towards investing. If that were the case, that 20% deposit could be spread-out across multiple smaller deposits to secure multiple properties within a short space of time. By taking out higher LVR loans (90 or 95 +LMI) and using more of the banks money, Keiko could commence building the portfolio quicker. They could also add value to these IPs, with the potential (depending on the future value) to tap into some equity later on. Obviously, this approach wouldn't suit everyone, particularly cautious/risk adverse investors would would prefer to avoid LMI and contribute a larger deposit. Cheers Jamie

    Nicely said, yes I am looking at a more aggressive approach this year, so there for looking at doing higher LVR's than previous, It is a bit of a experiment as well, so see if it ends up working out better than how I normally invest.

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Best of luck with it Big Teddy.

    I personally took that approach to kick start the portfolio – 90% + LMI lends. This allowed me to purchase multiple properties within a short space of time rather than pouring all my equity into into a large deposit for one IP.

    For the record though – I’m not recommending or endorsing any particular method. Different investors with different risk profiles have different approaches.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of ksherwellksherwell
    Member
    @ksherwell
    Join Date: 2007
    Post Count: 125

    CBA are now doing 95%

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