Hi Forum,
I find myself in a frustrating situation as i’m keen to get started with investing – yet i have discovered that i’m a ‘Low Doc’ person. As i crawl to the end of my 2nd year in private practice i face a couple of tough decisions.
At the conclusion of the 2004/05 tax year i will be faced with a substantial tax bill and HECS repayments – which i would naturally like to defer paying for as long as possible. However, if i get my tax return done ASAP – then i can get going on the loans and investing!!My question is – should i do this – or should i pursue a Low Doc loan?
I have a decent amount of cash ready for deposits, and i’m fianlly earning good money – as the years of study begin to pay off.Depending on your required LVR, low doc loan rates can be the same as full doc loan rates. The maximum LVR for these cheaper rates is 80%. Unfortunately, you may be required to pay mortgage insurance as banks are now required to mortgage insure all low docs over 60% LVR.
You sound like you are a doctor who recently completed their education. There are high LVR loans (95%) available to doctors or others in professional fields who are starting out. The lender does not charge mortgage insurance on these loans as they are willing to take the risk on your education.
Find a good mortgage adviser to help you.
Robert Bou-Hamdan
Mortgage AdviserThanks Robert – great advice. Although not a Doctor i am a health professional – so pursuing a Low Doc loan based on my career and potential income is worthy of consideration.
I live in the ACT – do you have any recommendations as to who i could see?I am sure Rob has clients in ACT – if not then I have a colleague there who my family uses.
Cheers,
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
HI ACT,
The ACT requires registration of mortgage brokers to write loans for residents. As a result of this expense, not many Interstate brokers register. However, as Simon has pointed out, most of us have colleagues there that we refer to. I believe Simon and I both refer to the same guy – Jason.
As I don’t have his details handy, I hope Simon would be kind enough to forward you those details.
He is a very knowledgeable and efficient broker and a great guy.
Let us know how you get along.
Robert Bou-Hamdan
Mortgage AdviserRob,
Is the ACT the only state that has these regulations? I’m not really sure what that means for me in regard to getting a loan. What if i want to buy an IP in another state – especially as there is nothing worthy of consideration here in Canberra?
Lee
It is not a real issue for you. You can buy anywhere but cannot chose any broker you want. A broker who is not registered in the ACT cannot legally write your loan.
In WA, a broker has to be licensed or they cannot legally write the loan for a WA resident.
Everywhere else is ok as long as the broker complies with the relevant laws – eg: Finance Broker Agreement in NSW and Victoria
Robert Bou-Hamdan
Mortgage Adviser
You must be logged in to reply to this topic. If you don't have an account, you can register here.
