All Topics / Finance / Homeside 95% LVR

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  • Profile photo of The ChaserThe Chaser
    Participant
    @the-chaser
    Join Date: 2008
    Post Count: 28
    May 23, 2009 - 5:36 pm

    Hi there

    I have been doing some initial research for a suitable loan for our next IP purchase.  I am after a competitive full doc I/O variable rate loan with a high lvr (prefer 95% lvr with LMI capitalised if possible).  The loan will most likely be in a PAYG personal name (or if not, than in a DFT with corporate trustee).  Any recommendations based on recent deals would be much appreciated. 

    I have also found a variable rate product from Homeside Lending with an initial interest rate of 5.07% (5.12 comparison rate) and a 95% lvr.  Can anyone answer the following questions:

    1.  Are Homeside products only available through a mortgage broker?  (I will ultimately use a MB to arrange the finance, but I am trying to do some degree of due diligence first.)
    2.  How long can the loan be I/O for?; and once this I/O period expires is it possible to request another I/O term rather than reverting to P&I?
    3.  What are the approval times like with Homeside at present?
    4.  What percentage of rental income do they consider?
    5.  Can I capitalise LMI?
    6.  Are there any deferred establishment fees?
    7.  Most importantly, can anyone pass on their own experiences as a client with Homeside?  

    Any replies would be greatly appreciated.

    Thanks in advance
    Angela 

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    May 24, 2009 - 3:46 am

    Hi Angela

    A few answers for you:

    1) Yes
    2) 5 Years and yes it is possible but unlikely to be acceptable in the current climate.
    3) Dont even go there. We are a 4 star Broker with the NAB and even our processing times are getting worse and worse. In saying that of course if a pre-approval is obtained then time is probably not that important as the contract and other details can follow.
    4) 75% of new rent and 80% of existing rent.
    5) NO. it is 95% less LMI.
    6) Yes $900.

    If a Corporate Trustee / DFT is used then less likely to get 95% and even if you do they will ask for the Trust / Constitution assessment fee up front to cover their legal costs which is around $350. In saying this this becoming more common as lenders dont want to find they approve the loan and you dont settle.

    Richard Taylor | Australia's leading private lender

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