Forum Replies Created
Cathnniv,
I think there may be some confusion here. The main purpose of accessing equity in an existing property is to use it as a deposit on a new property so you don’t have to come up with the cash or have to pay mortgage lenders insurance. If I understand your situation correctly, you should have heaps of equity to get a $200K to $230K property. If the bank will not lend money based on your income then you may have to look at a low doc loan.
I will inform my mortgage broker that you may decide to contact her and then I will email her contact details to you. She will assess your situation in more detail and let you know what is possible and what is not.
God Bless
ToddTo FF comm,
I find it strange that you know with such certainty what sort of loan deal that I have. In one way you are correct, I did not borrow 100% of the cost of the property, the property I purchased was $175K and the loan was for $182K to cover legals etc. This is MORE than a 100% lend. This was all in the one loan and did not involve an increase on any other loan. I must point out that this was a full doc loan.
Tony- Search out all of the options because each lender is very different and their rules and regulations are frequently changing. A good mortgage broker will be able to find something that most suits your situation. Do you have existing equity that you could use?
Todd
You could try a low or no doc loan. All you do is sign to say that you can afford the repayments. The interest rates are higher on these loans but it may be the practical way for you to enter the market. You have good equity so you should be able to do better than what you have been quoted in the past. Just make sure you are sensible about the risk you take on and don’t take on anything that you really cannot afford. I have a good mortgage broker who understands these issues. I would be happy to forward her details to you if you wish.
Todd
A friend of mine worked for a demolition company in Wollongong and a couple of years ago he quoted me $6K for the demolition of a standard house. So it sounds like around $8K for a basic house demolition is reasonable. Sourcing people by putting an ad in the paper to get you house demolished and removed can be a very risky and drawn out process. My suggestion is to use professionals, ask about insurance and licences and don’t get ripped off.
Todd
A couple of years ago I got a 100%+ loan for an investment property from St George at a fixed IO rate of 6.29%. This was using equity in an existing property. I think this is the cheapest way to do it. If you don’t want to use existing equity then it will be quite expensive and difficult to get a 100%+ lend. I don’t understand why you would not use equity (unless you were wanting to buy in a risky area). A lot of lenders will also baulk at lending in areas with a population under 10K. Wherever there is increased risk to the lender they will generally charge you more in interest. Hope this helps.
