2nd mortgages/ caveat loans  in cases like this are very expensive. Could be 10% or more on a second and even 5% per month in some cases on a caveat loan. The main thing is keeping your lender up to date with your circumstances. I've seen people struggle in arrears for two years with major banks and never get defaulted or foreclosed. The banks…[Read more]

Property:

550
650
700
Total 1.9M

Lending

530
400
700
Total 1.63M

LVR 85.7% (1.63/1.90)

Accross the board gearing is getting high. I would assume your current IP is crossed with your current PPOR as the loan / property value is too high to be standalone. This indicates you can’t simply get a depoist against your PPOR as the equity already…[Read more]

There is no reason you cant get an entry level job in finance e.g. Work as a loan processor in a broker firm or processing centre in a bank . Mobile banking and broking is largly a sales role however. If you want to make sales / make money best to get some hours working behind the scenes. At least you will learn a few tricks before practicing with…[Read more]

Keiko,

Its a case by case scenario. I was recently involved in a development deal for 20 units. The clients borrowed it’s core debt (with a major 4) and raised the balance through a second. The second was placed by a company that was set up specifically for this deal ( a group of investors).

The first, second and third questions from the banks…[Read more]

Property is not an asset you should expect Cap growth over a 3 year period. Might be up. Might be down. 3 years is speculitive.

Too many people focus on housing shortages as guarantee growth will continue. I would say is aust it is more a matter of avaialbity of funding.

E.g.

10 people at auction with approvals ranging from 440k to 550k.
10…[Read more]

Ps also assumed credit card was closed and income was split 50% for tax purposes.

There are a few variables so take it with a grain of salt.

Banker

Total property 1.2M
Total loans 930k

Total lending is currently at 77.5% (930k/1.2M).
Funds availalbe is approx 30k if increased to 80% (960k).

With the additional income from the 2nd IP my figures would show servicing is boarderline but that’s assuming no kids or other debts.

Gearing is getting high which obviously means higher risk.

It’s a…[Read more]

Hi CK,Each loan contract has a Security Schedule (usually towards the back). The properties listed in the Security Schedule are security for that loan. If all your loan contracts list all your properties you are fully crossed. You might only need variations to 1 or 2 depending on when the loans were set up. Have a look at the schedules.Banker

Nope. Did one recently with CBA. I think what ANZ is saying is MAX 80% LVR – 1st and 2nd combined.

Hi Terry,

You can use the app with a Nokia but you will need to of them.

Simple point at the house, rub them together and say “I think I can I think I can.”

If it doesn’t work try the next house.

Banker

Hi Newday,I'm of the opinion that not x-collateralising in more hype than substance and it will come down to your preference. Examples below ignore stamp duty and costs and assumes purchase of 300k (rounding to make it easier).OPTION 1 – Not crossedExisting home loan – 20k (against PPOR)Investment loan – 60k (against PPOR)Investment loan – 240k…[Read more]

Last I heard Cba were out e.g. Lvr NIL. Westpac were saying no and ANZ were reviewing there position. Maybe someone else can answer.

Hi Paul,

You’ve given the names the loans are in but not titles?
Can you list relation of family members to each property?

PPOR and IN1 are worth total 940k. At 80% this is 752k freeing up to 187k. This is ignoring equity in other properties (noting your post indicates they are not crossed).

Will you all be applicant or guarantor for the new…[Read more]

No. One against the purchase – standalone.
The other against the second mortgage.

Sorry – my posts would come across as putting Hans down but it’s not my intention. From my experience, lack of experience is one of most crippling factors in the industry. It also affects the viability of a good brokers business by blocking lenders turnaround times with crap deals (one bank recently saying they need to rework 70% of broker app…[Read more]

Don’t know about tripling your earnings;

Firstly I don’t work in a bank however I am a career banker. Retail, Corporate and institutional banking – mid to senior management.

Secondly some of the leading bank employed mobile lending managers (retail) are earning 500k plus. It is very easy in banking to reach the 100k mark and there are far more…[Read more]

I’ve spent the afternoon walking down the street pointing my phone at houses.

No. The approval indicates that you should be OK assuming your circumstances do not change.

Even with a 3 – 6 month pre-approval or any application. If the bank does employment checks before settlement and you are not employed they can pull the pin:- or at least ask for more info.

A loan is not unconditional until funded / settled.

I’m not sure. I think between $180 and $250 for a normal Val. The link is a but hard to find.

Agree. You could get stuck if your banker / broker is not up to speed. The banker / broker will also need to keep on top of getting ING to sign the deed on priority.

Sammmeee – what state are you in?