What are the costs these days and interst rates for a no deposit home loan? We wanna get another investment property soon but dont wanna wait to save up deposit in full before prices of property go up again. Im looking at properties 100,000 and below
Firstly at under $100K you may find that the post code may prove an issue but assuming that is not the case then you would need to cover the acquisition costs i.e stamp duty, mortgage registration etc etc in the State you are refering to.
Then in most cases LMI is deducted from the loan which is another cost.
Whilst a 106% Investor Loan is available which would cover all of your costs the minimum loan advance is $150K and it is post code restricted.
Richard Taylor | Australia's leading private lender
What would you mean by post code restricted? I was thinking of regional victoria or nsw. Some places that came to mind were Ararat, morwell and taralgon
Many lenders will not lend 100% + in certain post code areas.
The 100% + lending in limited to restricted suburbs.
Richard Taylor | Australia's leading private lender
The postcode restriction is from the mortgage insurer the lender uses and as a loan with a higher LVR figure requires mortgage insurance a postcode restriction may exist.
Brett
The 2 lenders that offer 100%+ loans do no tmortgage insure them so it is not the Mortgage Insurer that imposes the post code restrictions
Richard Taylor | Australia's leading private lender
I'm just wondering what sort of requirements would be the minimum to get a 97-100% Home Loan for someone earning ~$150k pa? I've only been working at this place for 3 months so would I need to wait a year or 6 months?
Whats the minimum I should be striving for?
As long as your income is base salary then 3 months should be fine.
If it commission or bonues etc then you will probably need a full 12 months.
Richard Taylor | Australia's leading private lender
To use the equity in our current investment property do we need to use the same lender we used for this property? I was told that it was unlikely that our lender for this property would lend us money on basis of our equity in our surfers paradise apartment. It settled a month ago and they were hesitaant to lend us over 85% at the time due to the nature of the type of property.
Yes regretully unless you refinance you will need to.
I am unaware of any lender who will take a 2nd mortgage past 85% LVR.
However if you take out a separate IP loan at 100% + then equity wont be an issue.
Richard Taylor | Australia's leading private lender
Would this be a 100% loan from another bank? Would we be able to touch the equity to borrow money for things such as stamp duty, legal fees etc and get the 100% from another bank to pay for the investment property.
would Churchill in latrobe city region be available under a 100% mortgage. You mentioned earlier that morwell was. Churchill is around pop of 7000 but its right next to morwell.
Hi unfortunately Churchill is an unacceptable post code.
Unless you can get your existing lender to extend their borrowing then NO you will not be able to access the available equity without refinancing.
Richard Taylor | Australia's leading private lender
Whats is the cheapest interest rate at the moment on a 106% loan for a place between 150-200K
8.2% variable
Richard Taylor | Australia's leading private lender
Qlds007 wrote:8.2% variableme and my partner have a combined income of ~80K per annum. Would we qualify for this. We also have a rental income around $1100 a month
All depends on the size of the property you are looking to purchase, individual break up of incomes and the size of the loan on your rental property etc etc.
Richard Taylor | Australia's leading private lender
Are there any other restrictions placed on the 100%+ loan?
We are looking at doing a 6 month live-in renovation project in the ACT in order to build up some investment capital. Would the fact the we plan on living in it in order to claim the FHOG affect our ability to get a 100%+ loan?
Also, what sort of interest rate is applied to these loans?Cheers
Current interest rate is 8.20% and Yes the loans are post code restricted so as long as that is ok then no problems.
Certainly a bit more fussy over documentation but all in all very useful.
Richard Taylor | Australia's leading private lender
Port pirie ? for 100%. lol. u must be getting sick of me asking
Regretfully Not.
Richard Taylor | Australia's leading private lender
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