To add to Richard's comments, the idea I suppose is that there's nothing to stop you from pulling out all your funds in the LOC tomorrow, in which case you would have a hard debt of $250k which must be taken into account.

Your lease should identify how to calculate it. In a standard LIV lease, for instance, look under the definition in the lease for "Consumer Price Index" and you will see that it states "All Groups" for Melbourne as being the correct CPI figure.

Andrew is right, paid defaults under $500 should be allowed under CBA policy.

We obtain a credit report for free within 24 hours for our clients. It might be that there is another default that you are unaware of. Saves you 30 bucks or 10 days, however you want to look at it. They have the ability to approve this deal in house, rather than send it to their mortgage insurer.

Also, your current broker should not take 2 months to give you a response! Given the large volumes banks are getting again due to the increased grant, turnaround times are no doubt increasing, however two months is a joke.

The valuation should automatically come up on her system as soon as it is returned to the bank! Don’t be convinced by the line that Cba paid for it – it IS after all, YOUR property Lightyrs! Consider a case where you thought it was 400k but it only comes back at 360k. They HAVE to tell you how much because it impacts how much they will let you borrow.

Finally, in answer to your question, whilst it’s not good that you have a enquiry that has declined, it doesn’t strictly mean you can’t get finance from another lender at all. That’s why you’ve still got all these brokers in here asking you for more details!

Consider the following:

hello out there, 

I am in need of advice well it all starts like this:

My wife and i are looking at buying a friends house off him to live in. We will rent out the unit we are currently living in to start off our portfolio. We are hoping to achieve a rent of $___ for our unit.

The tricky part is his house has been valued at 330,000 and has been offered to us for 290,000

Because we still have our unit (and a debt of $x) we can only borrow $230,000, it impacts on our borrowing power. We currently owe $___ and our unit is worth $___

The person at the bank told me that if i dont put our 2 kids down on the application they will lend us 280,000, but I don't feel comfortable about lying on my application. I am considering reporting him because it was those shady lending practices to begin with that caused this whole financial crisis.

My parents have offered for us to live with them as they have a big house. This will enable us to save some more money for 6 months – we are taking the offer but i really dont think we will still get the full amount (why?)
 
I have told my mate about my plans for real estate and he has offered for us to buy the house for 230.000 and pay him 60.000 later on  all done legally of course.
 
Here are the options as I see it:

Option 1
Do I apply for the 280.000 and not put the kids down (although this feels like I am lying on my application, because I really do have 2 kids, so this is not really an option) 

Option 2
Do I take my mates offer (ie, to give him $230,000 and give him the $60,000 later)?

Option 3
Are there any options that I have yet to consider?

No matter what happens we will be trying to save the money first but I'm asking this in case my circumstances change and I am unable to raise the remaining $60,000 in time.

Thanks for taking the time to read my post.  Please ask any questions as I can understand that the lack of punctuation in my previous post rendered it very confusing.

Thanks again 

Kevin2008.

An English teacher I used to be…

I had a situation where there was no body corporate on the contract – my lawyer advised that if there was no body corporate the title couldn't legally be registered as there was no right to use the common property (ie the carpark, stairs and hallways).

He opined therefore that the only way to legally access the property was to fly through the window!

Also depends on how the building contract is structured ie if house + land package and you pay using progress payments. Typically if it is lodged through the bank FHOG is given when the slab is poured.

Rastuss,

You should avoid cross collateralising where possible, and it looks like you probably can in this case.

Pull out more money from your existing property as a separate split, then borrow against the second property to make up the difference (or more).

4 loans should not really be that confusing, as long as all of your money goes into one transaction account (offset account if possible). What happens is that you other loans are interest only and the interest is automatically deducted from your transaction account. This way, you won't miss a repayment whilst removing the headaches!

Terry's right.

Hi nooby,

How about that? My brother is also stationed in Darwin with the defence force! His wife is a lawyer there too so she might be able to give you a proper legal answer if you like.

I am of the understanding though that if you are just sharing a room within your house then it will have no effect on either of your questions.

Cheers,

St George have just tightened up their policy on 100% loans even further.

Commitment cover ratio is now 1.25% (as opposed to 1.10%) which means you'll be able to borrow less…