hi
im looking to buy house for around 400000k
means i will need to have 20% which is 80k to avoid lmi
(will be using as ip after getting fhog)
i have been looking for home loan that is
-interest only
-offset account
-low interest, low or no feesusing infochoice home loan comparison website
the best deal is listed was Equity saver premium interest only home loan
(Has anyone had any experience with them)
Even though they have exit fees when you transfer loan before the 5 years period. but
why would you if the cost of servicing the loan you be at least 20k off than any other
lender on infochoice.offset facilities have maximum amount you can put in there?
how long does it take to get pre approval from the lenders when you submit your application.
also i will be seeking a mortgage broker for advice just to make surethanks
anhanhie wrote:hiim looking to buy house for around 400000k
means i will need to have 20% which is 80k to avoid lmiLMI doesn’t have to be a bad thing. I’d rather take out a 90% lend and pay some LMI (which can be added to the loan) then wait while I save up a 20% deposit. Also, if this is going to become an IP in the future – you probably don’t want to drop all your savings into this property and reduce the level of deductible debt.
anhie wrote:(will be using as ip after getting fhog)All good – but you’ll have to live in it for at least 6 months within the first year.
anhie wrote:i have been looking for home loan that is
-interest only
-offset account
-low interest, low or no feesusing infochoice home loan comparison website
the best deal is listed was Equity saver premium interest only home loan
(Has anyone had any experience with them)
Even though they have exit fees when you transfer loan before the 5 years period. but
why would you if the cost of servicing the loan you be at least 20k off than any other
lender on infochoice.offset facilities have maximum amount you can put in there?
how long does it take to get pre approval from the lenders when you submit your application.
also i will be seeking a mortgage broker for advice just to make surethanks
anhI wouldn’t base your decision purely on interest rate. What’s their cashout policy like (will they allow you to access equity in the future)? I doubt you’ll be able to cashout above 80% in the future (which can cost you a lot in terms of missed opportunity). That deferred establishment fee (which will need to be removed by 1 July 2011) is a killer.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Firstly, thanks for your speedy comment and advice. Much appreciated.
I do know I will have to have to live there inorder to get fhog. There two options I was looking into.
First option I describe on my previous post.
Second options is
Get home loan with as little deposit as I can, whether it’s 90-95%
400000 house pay 40000 deposit
loan would be 360000 plus lmi
40000 in offset account
I like this idea especially when I will need to make repayment with getting any
Rental income
However, first option I s
Pay 20k less interest over 5 yeArs periodAnh
Hi Anh
Do you think you’ll want to tap into this properties equity within the first five years? If so, I’d ask them about their cashout policy. You might not think you’ll need to refinance now – but if down the track you do decide to use some of the equity and they don’t allow it then you’ll have no choice but to go elsewhere. Which is likely to cost you big bucks in DEFs.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
anhie wrote:hiim looking to buy house for around 400000k
means i will need to have 20% which is 80k to avoid lmi
(will be using as ip after getting fhog)
i have been looking for home loan that is
-interest only
-offset account
-low interest, low or no feesusing infochoice home loan comparison website
the best deal is listed was Equity saver premium interest only home loan
(Has anyone had any experience with them)
Even though they have exit fees when you transfer loan before the 5 years period. but
why would you if the cost of servicing the loan you be at least 20k off than any other
lender on infochoice.offset facilities have maximum amount you can put in there?
how long does it take to get pre approval from the lenders when you submit your application.
also i will be seeking a mortgage broker for advice just to make surethanks
anhI would be very careful when going with a small and unknown ONLINE mortgage manager ( which is what Quick direct is ) they borrow the funds from a “bigger bank” and repackaged it back to the public; they tend to increase their rate on a case by case basis… meaning you could be on a 6.59% now…but in 6 month time it could go to 6.79% for no reason- as they source their funding in batch…
Another point to note:1. High DEF ( exit) fee…this tells me they do use the “increase” slowly” method to make their margin.
2. LVR limitationsRead here for more info- this company is similar ( sorry it’s from a different forum) http://www.somersoft.com/forums/showthread.php?t=48702&highlight=Myrate
To get a more personal understanding, email jamie and he will be able to work out which product or lender may suit you…end of the day maybe Quick direct does suit you if your happy with the “unknown/gable” .
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Would I have equity in the house if I’m only making interest only repayments? Is the there a limit of how much money
You can take out from offset account or the maximum withdrawal in one go?
If I plan (likely) to invest in another ip I would just use the deposit from my offset account.
Unless you mean the increase in value from my property over time?
I will definitely ask about it
ThanksAnh
Equity can be achieved through future growth or manufactured through renovations.
With you offset – you can take back whatever you put in.
Another thing to note – cash from your offset will not be deductible, whilst new borrowings against the property will be.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Is it best to get mortgage broker to get home loan?
What if you know exactly what your after. Or they advise
the same lender that you know is the best/ suitable deal already?
What other services they provide other than getting/ applying the home
loan on your behalf?Anh
i wont say yes or no to that question, as im a mortgage broker and the answer would most likely be basis anyway
But it comes down to our personal choice and trust in the broker- as you will be giving a lot of personal details to this person/firm- like you would to any bank staff.Think of us as an accountant ( who’s free) , we help you structure your loan to YOUR benefit.
1. We advise
2. We do some of the check for the loan
3. We talk and negotiate with the lender on your behalf
3. Submit loan
4. We can organize and dispute the Valuation on your behalf.
5 Follow through with the conveyancer and legal work
6. Personalized approach.
7. We have access to Managers and products within the bank that the general public may not have access to.8. + anther services ..depends on the Broker and what are quantification he/she has.
I know a lot of friends who just go direct to the bank; but when they have a problem, the first and last person they now speak to is me.
As i said, give Jamie a call and see what happens from there; you got nothing to lose beside a $0.25 call charge
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
I agree drop Jamie a line or give him a call and get some Professional advice.
As Michael mentioned it doesnt cost you a cent and you will get free information from someone who owns a IP or 3.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks for your helpful advice. I know now its definitely wise and best to get a mortgage broker assistance.
As a inexperience first home buyer there’s of options and hidden costs associated with
mortgage that a broker can explain and answer questions you may have.
I’m guessing Jamie a mortgage broker? But isn’t he from NSW. I’m from Melbourne.anhie wrote:Thanks for your helpful advice. I know now its definitely wise and best to get a mortgage broker assistance.
As a inexperience first home buyer there’s of options and hidden costs associated with
mortgage that a broker can explain and answer questions you may have.
I’m guessing Jamie a mortgage broker? But isn’t he from NSW. I’m from Melbourne.I thought I was just speaking with you on the phone…..I just had a 10 minute conversation with someone about this post.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Yes his from ACT.
Most of the mortgage stuff can be done Via email/Phone or Skype etc…
It like you applying for your mortgage with the above company – Quick direct OR even ING – all done online/phone and some of them are based OVERSEAS as wellThe main difference is rather then a whole CALL center looking at your loan, a broker can provide a more personalized approach
If you prefer a Face to Face broker, there are a few good ones on this forum as well.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Thanks, I think I like the face to face dealing. More personal, especially when this my first.
I contacted a melbourne mortgage broker that someone recommended from a previous
post I was reading, Michelle Coleman. She seem very helpful.
How many times would I need to meet up with my mortgage broker? I live in footscray and it quite far from
Preston where she situated.Call/email first – Get everything ready ie all the paper works + questions..and it can all be done within 1 meeting ( when done correctly at the phone stage)
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi Anhie
Have received advice from your accountant? It's always wise to do this before purchasing an investment.
Hi all
Do people see accountant for advice on how to invest in property? I just thought they are use at end of year with their tax return or to keep their finances in order. I have Jamie M as my Mortgage broker. He's been great, promptly replies to all my queries and very helpful. Definitely recommend him to anyone, especially those like myself just starting out. Thanks
Anyway, over the past few days I been coming up with many different scenarios as to how I can make the best gain. Not sure whats the best options.
Should I purchase apartment or unit closer to city, or further away but then I can afford a house or townhouse?
Do I purchase property that I can afford that I can pay comfortably by myself or ones that more expensive but would have to rely on tenants for income? (either way I'll renting it out)Here are some of the things that need to be consider
– currently living at home, no plans to move out
– no major bills, just mobile/phone bills, internet , world vision, health insur, car insur and gonna to add income protection
– car loan, not much so no biggie
– long term investment like 5 + years
– income base $50k but more with optional extra/ overtime works. plus another 10-25K (definitely be working more)
-currently have $75k
What would you do in this situation?Ta
AnhHi Ahn,
We see an accountant not for them to show us WHERE to buy…but more if we buy what are the negative and positive and should it be more -ve or +ve etc…
Im guessing from your post, this will be your 1st investment?
Personally for me, if i was in your situation i would buy a house not a unit. why?1. Your living at home anyway- so you would have some sort of financial help..ie sharing the bills etc
2. House will give you a good foundation to grow much quicker financially due to the capital gain
3. Buy in a known area with good growth drivers…so expect to pay the medium price – $400k +
4. buying a unit as your 1st one is ok if your “renting” and not living at home and have a expensive lifestyle etcRP data , forum and magazines like API has great info about areas to buy for growth.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
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