To avoid cross col + LMI you could just draw the equity out as an equity access, then put this forwards as security alongside the cash for the new loan (which is only secured against the new purchase).

Indeed. Did one very similar to this recently, WBC didn’t want a bar of it. Refinanced over to a more amenable lender, cut 0.4% off the guarantor’s rates in the process. Everyone wins. (except the outgoing lender)

Unfortunately WBC will only allow parental guarantee’s.

I wouldn’t bother with haggling a tradie on price. Get the quotes around, if you don’t like it don’t take up the quote. Haggling them on price is a great way to get them offside.

The best rule of the them all: Use a GREAT broker who specialises in investment lending. A broker works on your behalf, so can find the best lending to fit your needs. Instead of trying to navigate the maze and avoid the landmines, build a team of professionals who can assist you with your needs. You’re going to end up with a superior result,…[Read more]

Yes there is one lender in particular who will provide a security guarantee for any person, no relation related at all – let alone close family.

Which lender is your aunty and uncle’s property with currently?

Trusts can have very real benefits, but for some people they can be rather superfluous or ‘over kill’. As Terryw has mentioned, it is well worth considering, weighing up the pros and cons of buying in the type of structure. Finance can be affected by purchasing through a trust – something to keep in mind.

If you are happy with the long settlement window, take it on as an unconditional contract (no finance). If he doesn’t complete, you keep the 10k. Issue being you have to pay the agent in the meantime.

9 months is quite a while, I’d want 10% deposit to take on such a long length at a minimum.

If you do go down this path and he rents the property,…[Read more]

Kirstie you’ve got quite a few questions. :)

Form a great team of experienced professionals (broker, accountant, conveyancer/solicitor etc) who you can then leverage off their knowledge to assist you to meet your goals, and CHALLENGE your goals to make you achieve much more than you original set out on.

Kinnon who has been posting a bit in this…[Read more]

Make your principle place of residences loan interest only, if you have access to an offset account. From there setup a direct debit for the difference you otherwise would be paying with P&I into the offset. Place extra funds into offset until the balance grows enough to provide a sufficient deposit. If the value of the property has risen enough,…[Read more]

Casual employment isn’t so much of an issue these days – lenders are realising that ~30% of the workforce is casually employed and need to accommodate this large segment of market.

First port of call would be organise a valuation on your existing investment property, if the value has increased since your purchase + the excess you’ve paid, you…[Read more]

Terry makes a good point. The value of an asset is only what the market will be willing to sell in a reasonable time. If you cannot sell it for that price, I’d hazard a guess that it’s true value may be somewhat less.

Unfortunately that is not how it works. The Reserve Bank of Australia does set the cash rate in Australia, however this is not necessarily linked to interest rate movements within the banking sector, and this has become more the case over time as funding sources have diversified further away from the RBA. Lenders are free to change their…[Read more]

Remembering that what is the cheapest rate now, might not be that cheap in the future!

I refinanced a PPOR for a couple recently who were with a online mortgage provider. The rate had creeped to 0.8% higher than the rate we refinanced them over to. Needless to say we put them with a lender which has a long history of offering competitive rates…[Read more]

I wouldn’t say financing community title is that difficult at all. Some lenders have a small few other requirements (solicitor inspecting the community deed at cost) but it’s not exactly onerous.

Kerbsides can be so hit and miss because of this! Likewise I’ve had some very generous results come in for kerbside vals up to 10% above expected for refi/topup deals.

As mentioned above, upfront val through another lender, upgraded to full val if necessary.

That’s actually not true. Lenders factor credit card limits as being fully used for the most part, so based on a limit of 20k you might have repayments of $600 per month. Dependant on the lender, this may equate to a reduction in serviceability of 100k – so much worse than simply doubling the limit!

With regards to your question Clint, the…[Read more]

You might need to cop this one on the chin – the property manager however should have been smart enough to verify the basics before suggesting sending in professional. Keep note for the future to check for basic fixes before sending in the tradies next time, can’t trust the property managers judgement unfortunately!

Security guarantee shouldn’t effect your stamps concession.

http://www.certuslegal.com.au/conveyancing/buying/

Quite a few clients use their services for Queensland purchases – from the broking side I’ve found them to be diligent and professional in their approach.