All Topics / Finance / Deposit finance.

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  • Profile photo of gags327gags327
    Participant
    @gags327
    Join Date: 2008
    Post Count: 64

    Hi All, I am wondering if someone can help me, I want to buy a new place of residence. What I wanted to do was finance 80% through the bank and pay the owners off the remainder over the next couple of years. I have been approved for the loan with around 5 to 8% deposit. I can probably get this a bit higher. Just the mortgage insurance is so high. Is this possible? I was approved for around 614k loan amount with this way it is a loan of around 530k. My broker said no its not done but I have seen it done before. Any help would be greatly appreciated.

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    In commercial lending yes, residential they don’t like this – especially through mainstream lenders. Non coded lenders may accept it, but these come at higher ongoing costs which will outweigh the LMI.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of gags327gags327
    Participant
    @gags327
    Join Date: 2008
    Post Count: 64

    Thanks Corey. What is non coded lenders, is this like low doc and are you meaning that interest rates would so high.

    Profile photo of Hank HongHank Hong
    Participant
    @sid13473134
    Join Date: 2016
    Post Count: 13

    Hi Gags327,

    There are lenders who will accept a personal loan as a deposit, they would need to see that you can pay that loan and the new home loan as well.

    I have usually stayed away from this as ideally I would to make sure I am not over extending my client financially, also we would want to see some commitment from the client.

    In saying that there is also the family guarnatee loan, where if mom and dad have a property and they have complete trust in you, they can help you fund 100% of the purchase with no Lenders Mortgage Insurance. This is safer for the lenders as they have a guarantee from the parents.

    Hope this helps =D

    Hank Hong
    Email Me

    Google Hank Hong he's pretty cool.

    Profile photo of gags327gags327
    Participant
    @gags327
    Join Date: 2008
    Post Count: 64

    Thanks Hank, the Guarantee is a good idea, not sure if I can get them on board thou. I basically have the 10% but was just hoping the vendors could finance the other 10 to save me the 26k in lenders insurance.

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

    Sorry i have to disagree it certainly can be done but you might need a 3rd party ACL holder.

    We have spent 2 years working on a new Company called No Deposit Housing Pty Ltd which now provides deposit finance throughout Qld to owner occupiers. We have 7 major lenders signed up for the scheme and have started doing our first few deals.

    We charge a higher interest rate than the prime lender but nowhere near a personal loan rate.

    Demand in SE Qld has been incredible and we look to launch Nationally within the year.

    You are so right gags a couple of enquiries we had this week were from borrowers who had a deposit but wanted to avoid the expensive LMI.

    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 gags327gags327
    Participant
    @gags327
    Join Date: 2008
    Post Count: 64

    Thankyou Richard, sounds very interesting. I did actually try to call you today but no answer. will try again tomorrow.

    Profile photo of Hank HongHank Hong
    Participant
    @sid13473134
    Join Date: 2016
    Post Count: 13

    Thats excellent Richard, will keep you in mind if there are clients that fit this Niche.

    Hank Hong
    Email Me

    Google Hank Hong he's pretty cool.

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

    Hi Hank
    At the moment we only lend in Qld where we broker the deal.
    In the first week alone we received 36 applications so matter of growing slowly in order to keep up with demand.
    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.

Viewing 9 posts - 1 through 9 (of 9 total)

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