Financier with 40 investment properties

Perhaps to clarify, and of course as a generalisation, with Mortgage insurance (LMI) the borrower pays this if the loan is more than 80% (yes, there is the very odd exception) and if not, we all assume that there is none. What actually happens though, and is usually the case with some ‘non banks’ or originators, is that there is actually still LMI for loans that have borrowings of less than 80%, but they pay it instead of us – so we assume there is none – but there still is. It does pay to check if you are planning on borrowing from a variety of lenders and signing up for lo-docs left right and centre. Of course, a handful of properties should not cause any real drama. Depends on what you are trying to achieve. And of course the mortgage originator or manager does not tell you this in most cases. Why would they need to for ‘Joe Average’ ? [strum]

Frank

I think you have totally misunderstood the responses you have received.

Whether you or the lender pays the LMI is neither here nor there it is as Terry mentions more important that the loan is actually insured and will effect your future borrowings.

Why would you not go to lender who does not insure the loan at all !!!!!!!!!!!!!!!!!!!!

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.

Freeman – Yes of course it is for all members young and old and everyone welcomes debate and opinions.

It is just frusterating when someone posts something that is clearly incorrect and potentially damaging to those who read.

Financing your IP and PPOR is a big decision and getting it wrong can be costly.

You obviously have no idea who I am and why i am here.

Just as a little background i have been a member for over 8 years and enjoy assisting members and contributing with advice and opinions on many property and investment related matters.

I have no need to tout for business or push my own barrow but am keen to ensure that members get accurate advice from fellow members.

Ok now to answer you post as clearly your mate didnt bother to advise you how using an insured lender can limit your future investing.

Every time you use a securitised lender the loan is insured (whether you or the lend pays the premium is neither here ot there). As there are only 2 main insurers each of these have a lending maximum. Once you have reached that maximum then you will be unable to borrow again as the lender cannot get cover for your loan.

If you use a lender that does not insure EVERY loan then you have more freedom and choice when you want to grow and the lender says NO. (V8Ghia has already spelt this out)

Also did your mate suggest the loans be cross collaralised ?

I am interested to know what advice he gave in property investing because I cannot see from their website that they hold the appropriate License to offer Financial Advice butmaybe i wrong and they just haven’t displayed it on their site.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.