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  • Profile photo of sonyasalsonyasal
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    @sonyasal
    Join Date: 2008
    Post Count: 421

    Hi

    Just wondering whether anyone has been able to source a very good investor loan recently. Looking for interest only with highest lend possible. Any loans offering 95% lends anymore?

    Would love to hear people's thoughts and experiences. How hard is it to secure a loan these days with new lending criteria etc.

    Thanks

    Sonya

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

    Hi Sonya

    There are so many variables that depend on whether a loan will get across the line. Type of security, location of security, employment history, whether or not you're an existing customer….there are so many other factors to consider.

    However, in general, I believe things are getting a little easier.

    That said though, a 95% loan will always be scrutinised a lot more heavier than say a 90% lend.

    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 Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
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    Hi Sonya

    As Jamie has mentioned Yes it is still possible but there are too many variables to give you a Yes or No answer immediately.

    I wish i had Jamie's faith that things are getting easier as to me the mortgage insurers are just as hard as they have ever been.

    Course if you own a property or two with a bit of equity it is always easier to finance at 95% + LMI than if it is your first IP and you currently rent and have limited assets.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of Henry AdamsHenry Adams
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    @henry-adams
    Join Date: 2011
    Post Count: 105

    Hi Sonya,

    I also been looking for similar type of loan as I’m now renting out my PPOR thus making it as my first IP.

    I’m with Bankwest therefore my current used to be home loan has suddenly become Investment loan, I’m now in the process of getting a good deal with my mortgage broker to get 95% loan with Bankwest for semi firewalling benefits.

    for your case, here’s my source of selections in case you interested to get more than 95% loan: http://www.canstar.com.au/home-loans/compare/variable-rate-investment-home-loan/

    with the Qld Police Credit Union you can apply up to 97% :-)

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
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    Henry regrefully just because Cannex or Infochoice show a lvr doesnt mean the lender will actually agree to do the deal at this lvr as many investors are finding out.

    In fact i would say from all the number of enquiries we receive the biggest issue is the investors existing lender will not go to a high enough lvr either thru lack of equity or serviceability.

    Info on such websites is always out of date and doesnt refer to actual credit policy which is being written merely published.

    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 Mick CMick C
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    @shape
    Join Date: 2010
    Post Count: 1,099
    sonyasal wrote:
    Hi

    Just wondering whether anyone has been able to source a very good investor loan recently. Looking for interest only with highest lend possible. Any loans offering 95% lends anymore?

    Would love to hear people's thoughts and experiences. How hard is it to secure a loan these days with new lending criteria etc.

    Thanks

    Sonya

    Hi,

    95% LVR is very common these days; especially if your a existing client of the bank.

    For a TRUE investors loan, i would NOT just look at LVR, but at the features…here are some of the top features that suit’s investor’s beautifully + save a lot of $$$

    1. Low Doc loan – Interest can be cap up to 2 years
    2. Low Doc Loan – can accept loan with only 1 day ABN
    3. Development loan – GSR accepted at 80% LVR with no pre-sales
    4. Full doc Loan – Serviceability instead of being calculated at 9% interest– can calculate at 7.5% ( if going for a 5 years FIX rate) —- very usefully if Serviceability is an issue.
    5. Full doc Loan- NO LMI at 85% LVR- discounted at 95%
    6. Full doc Loan- 95% LVR + cap LMI
    7. Full doc Loan- Free valuation and loan top up and changes ( 3 times a year)- ANZ bank

    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 Henry AdamsHenry Adams
    Member
    @henry-adams
    Join Date: 2011
    Post Count: 105

    Michael,

    thanks for the reply,

    “95% LVR is very common these days; especially if your a existing client of the bank.” –> so that means we will be using semi fire-walling method ?

    Profile photo of ksherwellksherwell
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    @ksherwell
    Join Date: 2007
    Post Count: 125
    sonyasal wrote:
    Hi

    Just wondering whether anyone has been able to source a very good investor loan recently. Looking for interest only with highest lend possible. Any loans offering 95% lends anymore?

    Would love to hear people's thoughts and experiences. How hard is it to secure a loan these days with new lending criteria etc.

    Thanks

    Sonya

    Hi Sonya, CBA and NAB are currently doing 95% or 5% deposit.
    have a word to them.

    Profile photo of apartmenthighwayapartmenthighway
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    @apartmenthighway
    Join Date: 2011
    Post Count: 2

    There are so many variables that depend on whether a loan will get across the line.

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213
    Henry Adams wrote:
    Michael, thanks for the reply, "95% LVR is very common these days; especially if your a existing client of the bank." –> so that means we will be using semi fire-walling method ?

    Henry, what is a "semi fire-walling method"?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://Terryw.com.au/

    Profile photo of Henry AdamsHenry Adams
    Member
    @henry-adams
    Join Date: 2011
    Post Count: 105

    Terry, sorry to cause confusion around.

    the term firewalling is when we set a loan after we have enough equity and transfer it to another bank.

    semi firewalling is when the bank/lender is the same (within the same bank) but the loan is split across two different facilities, therefore with both method if somehow the borrower having difficulties in servicing the debt, the property affected is just the one that is attached to the loan not the whole lot (not cross collateralized).

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

    Hi,

    This is the first time i heard of this term….reading your response it doesn’t make sense…if the borrower is having financial problem with one of the loan then they most likly would have problem with the another one as well given it’s with the SAME lender and SAME security? just a different loan type….

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

    Profile photo of Henry AdamsHenry Adams
    Member
    @henry-adams
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    Post Count: 105
    Shape wrote:
    Hi,

    This is the first time i heard of this term….reading your response it doesn’t make sense…if the borrower is having financial problem with one of the loan then they most likly would have problem with the another one as well given it’s with the SAME lender and SAME security? just a different loan type….

    Regards
    Michael

    ah OK, so is there any way to totally separate the loan using different type of security rather than using the home as the security ?
    in another word “How shall we not cross collateralize to invest in another IP ?”

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

    If the bank allows you to cross, then that means you have enough equity to have stand alone mortgage without crossing…..so you just have to simply ask them NOT to cross…simple as that.

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

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

    Henry, what is a "semi fire-walling method"?

    Good question. Is this in one of Steve's books?

    Do you just mean setting up a second loan against a property which is used as  the deposit/purchasing costs on another – and then you source the remaining funds for the second property from the same bank or another? This is what we do to keep properties uncrossed.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Henry AdamsHenry Adams
    Member
    @henry-adams
    Join Date: 2011
    Post Count: 105
    Jamie M wrote:
    Terryw wrote:

    Henry, what is a "semi fire-walling method"?

    Good question. Is this in one of Steve's books?

    Do you just mean setting up a second loan against a property which is used as  the deposit/purchasing costs on another – and then you source the remaining funds for the second property from the same bank or another? This is what we do to keep properties uncrossed.

    Cheers

    Jamie

    Yes, and it is been used in various books about investment property of course.

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