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My general advice is take interest only on your investment loan if you have a home loan of your own too – pay interest only of f the investment loan and as much as you can off the home loan. Only do this if you can afford it though – speak to your accountant or investment advisor for personal advice. If this doesnt make sense ask your accountant
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected][specs]Sorry – i dont quite understand – you want to do the handywork ??????
I would recommend getting a broker that doesnt charge brokerage fees to compare rates/fees/repayments. Some rates/fees seem great at the start but you really should compare. Most brokers can compare between 30-50 products including all the major lenders without any time/effort involved for you.[hmm]
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]You can always apply for pre-approval subject to council approval !!!
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]hi there – most of the majors now have what they call a 95/5 product and they do not require 5% genuine savings and the will take the FHOG into the 5% also. You can also capitalise any LMI. There are some excellent interest rates available for this product – one that comes to mind is a honeymoon rate of 5.99%pa and no establishment fee, no valuation fee, no legals, fee free transaction account, interenet banking, redraw, 100% offset. Excellent product. Happy to give you more information if you like.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected][biggrin]You are still best to shop around whenever a finance deal comes up as some lenders do charge LMI , some dont – the rate also varies depending. YOu are best to find a good mortgage broker who doesnt charge a brokerage fee to shop around for your circumstances and quote you the rates through a variety of lenders with and without LMI and make sure they give you the set up fees.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]
[hmm]To be honest i think that is a question for your accountant or a good financial advisor.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.auDifficult to answer without full details but there is such a thing as “Substitute of Security” the new security must be in the same name as existing security and be of equal or more value. if not then it needs to be submitted to existing lender as total new deal.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]My advice would be to make an appointment with a mortgage broker who has experience with mortgage finance and let them sit down and explain to you how it all works and get them to go through the various options for finance available. Most brokers now do not charge fees so it wont cost you anythign to go through them yet you will have a variety of options to choose from
Anita Marshall
Managing Director / Mortgage Planner
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected][blink]I agree with the above – most brokers do not charge fees – they get paid a commission from the bank/lender which is not passed on to you so it costs you nothing more to go through the broker than if you went directly to the bank however you have the benefit of them shopping around for your finance so they will be able to give you a range of options to choose from.
YOu should have enough equity in your existing property to go ahead with the finance – the broker you use will be able to ensure you are able to service the loan through the particular lender you wish to use.
Anita Marshall
Mortgage Planner/ Managing Director
Advanced Finance Solutions
[email protected]
http://www.advancedfinance.com.au
[blink]I agree with what has been written above. Another point to note is that a lof ot the lenders will now ignore small credit defaults etc. I would recommend finding a good broker and discussing any credit issues then they will be able to shop around to find the best finance package available. You should be able to save a considerable amount of interest as there are some very cheap low doc deals out there at the moment ie 6.55% pa fixed for 3 years[blink]
Anita Marshall
Mortgage Planner
Advanced Finance Solutions
[email protected]
http://www.advancedfinance.com.auDo you mean with regard to the deposit to secure the sale or the deposit paid for finance purposes?
if you mean with regard to the deposit to secure the property some vendors will only accept the standard 10% deposit however most will accept 5% deposit. I would recommend negotiating the deposit with the vendor AFTER the price has been negotiated. Deposit bonds are also a good way of securing a property without tying up your funds.You only pay the deposit bond fee on the amount of the deposit so it is still beneficial for you to negotiate a 5% deposit instead of 10%.
If you are referring to finance then most of my clients borrow the maximum (some lenders will allow up to 106% of purchase price) or use the equity in another property to borrow full purchase price plus costs so that you can use any extra funds to invest in another property or alternatively pay them off your own home loan
Anita Marshall
Advanced Finance Solutions
Ph 0429810906
http://www.advancedfinance.com.au
[email protected]I wouldnt like to give advice on this one as it is really something I feel an accountant would be best answering – i would recommend an appointment with your accountant or one that specialises in property investors tax and get them to set up a way to structure this and then go to a broker who will be able to organise the finance side of things for you.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.auTo add to the comments below – if you have had an ABN for 12 months (or better still 2 years ) the products are extremely competitive now so definitely worth shopping around – there are a variety of lenders that also allow no ABN or ABN for 1 day.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]I think it is really important to compare the rate when considering whether LMI will matter in the long run because some products have no LMI up to 80% (instead of above 60%) but they are at a higher interest rate – if you go with a lender such as ANZ or Bankwest they have excellent interest rates for low doc with 100% offset but they do charge LMI above 80% – as long as you are keeping the loan for longer than 12 months the interest rate should outweigh the LMI anyway. You really need to sit down with a broker to compare all the products available.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]I am not sure what area you are located in but there is a home presentation specialist located in the Newcastle area by the name of Jacqui Williams of JW Interiors – she specialises in helping with this sort of thing. I have her details if you need it.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]I would recommend that you sit down with a mortgage broker and go through your existing structure. They will then advise you on the options available to you with your existing lender and also with other lenders to give you the full picture.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]A deposit bond is used in lieu of a cash deposit for the purchase of a residential property which provides you with the ability to delay payment of the deposit until settlement. It is suitable for clients borrowing 100% of property purchase price often in the case of first home buyers or investors and also for clients buying off the plan who do not wish to use their own funds to secure the property purchase until settlement. They are generally cost effective ie approx 1.18% (subject to change) of the deposit amount. It is worth negotiating a 5% instead of 10% deposit with the vendor (perhaps after you have negotiated purchase price).
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]There is currently a special for 6.99% pa with no LMI up to 80% LVR on homes/residential investment properties. I am happy to give you full details.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au[biggrin]
[email protected]
