second mortgage

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JLillian
Member
@jlillian
Join Date: 2004
Post Count: 9
August 29, 2004 - 7:34 am
I’m a newbie and have a little money, I’m considering 2nd mortgage but confused, could anyone help me answer those questions? thanks!
– if I borrow 80% from bank, can I get 2nd mortgage from same bank? or I have to go to another lender?
– if I get 2nd mortgage, do I need to pay insurance?
– what’s the interest charge on 2nd mortgage normally? and what’s the percentage can I get?
LILLIAN
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
August 29, 2004 - 7:45 am
Lillian,,
You may be able to borrow 95% of the purchase price or even more under some circumstances.
You should aim to save a 5%+ deposit over at least a 6 month period. If the deposit is a gift then aim for 10%+.
20% deposit is the ideal.
Any questions?
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985
NODOC Loan – 65% Loan – No questions asked!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
JLillian
Member
@jlillian
Join Date: 2004
Post Count: 9
August 29, 2004 - 7:57 am
Simon,
Thanks! try to save 20%.
one more question: in what circumstances 2nd mortgage would be ideal?
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
August 29, 2004 - 9:18 am
Hardly any – usually only used by a developer trying to raise additional funds. Not at all by residential property investors in my limited experience.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985
NODOC Loan – 65% Loan – No questions asked!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
August 30, 2004 - 1:22 am
I agree with Simon – there is possibly no need for a second mortgage.
These are only used by people who cannot get a high enough first mortgage. Generally the market rates for second mortgages are around 20% pa and the LVRs are around 80% max.
It is usually only desparate people that get second mortgages this way.
Maybe you were thinking around the vendor leaving money in the deal and then taking out a second mortgage. This is possible and they ofen allow a very high LVR to be achieved.
Terryw
Discover Home Loans
North Sydney
[email protected]
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://www.Structuring.com.au