Forum Replies Created
12 month term no DEF can be done! you just need to know where to look.
Hi Luke,
yes you are correct, the type of security will differ the interest rate you are able to secure greatly. But generally on variable 7-10% are common.
You should also consider a fixed rate, becuase ATM you can source these in the low to mid 5's for 1-3 years. Depending on the loan amount.
Your broker should be able to source the right facility for you.
i'd need a bit more information from you. if you'd like to contact me on my business email i'd be happy to discuss.
kind regards,
Hi Sarah,
when purchasing a house you'll need to involve a conveyancer for the property transfer. A good conveyancer will be able to assist you in writing a letter of offer up; alternatively you could write one up yourself or make an offer verbally.
If your borrowings are over $200k any of the major's will be able to help. Also AMP have a good basic variable product out at the moment with a 100% offset account with no annual or ongoing fees.
cheers,
Hi Bravo,
as they say rent money is dead money. by renting your probably paying someone else's mortgage off. Although there a substantial benefits to be made with an investment property.
The benefits of an investment property are rental income, depreciation and interest and bank charges can be claimed, to name but a few.
I suggest you speak to your accountant to find out all the benefits involved in investment properties.
Although with an owner occupied home there are no tax benefits to be gained but you have the security to know your have your own home.
good luck with your endeavors.
regards,
Hi Mixedup,
Depends on your circumstances. Are you going to apply for a Fulldoc or LoDoc? Do you have another property with equity that you can use for a deposit? Or are you wanting to apply for a 100% lend?
I suggest you chose a loan with a 100% offset account. this way you have flexibility with your loan and can offset interest charges.
The banks professional packs are always a good option to consider, they generally offer a .7% discount off their standard variable rate but they also charge an annual package fee of $300 to $350 depending on who you go with. Also they usually have a minimum loan amount of $200,000 and above to qualify for these discounts. You might want to consider a lender outside the big four to get what you want.
There are lenders that offer .7% discounts with loan amounts below $200,000. Your broker will be able to recommend a good lender for you.
regards,
Jaffasoft,
your correct in assuming the bank's make less profit of this kind of loan. The banks are a business like anyone else and they work for the shareholders. So their number one aim is profit, and they'd like to keep you in debt for as long as possible. If your bank is doing you an injustice i'd consider taking your business somewhere else.
regards,
Your talking commercial products here where a business banker at any bank should be happy to do business with you. This does not fall into the standard mum and dad construction arena.
regards,
Hi Misty1,
when your talking Constructions and Developments, they usually don't require financials. the lenders usually go on the strength of the deal. If the LVR at the construction stage is 80% or under and you capitalise interest repayments you wont need to provide financials.
Also if the bank sees you stand to make a profit upon completion according to the valuation and depending on the strength of the deal you might get away with no pre sales. again its a case by case basis.
regards,
Hi Jules,
With a good income and minimal deposit 106% lends are available. this means you can borrow 100% of the purchase price and borrow the costs too, e.g stamp duty and other fees. But if you read the earlier posts there a post code restrictions where you can buy.
Your post says you want to buy your first investment property, so if you have another property that has equity in it that you are willing to use the costs will be substantially lower.
regards,
Hi Rob,
If your getting knocked back from some lenders you should consider a non bank lender, who'll take into consideration 100% rental income.
regards,
Hi Salil,
I've settled many loans with AMP, and they offer a very competitive product with one the lowest rates available with very minimal set up costs and no ongoing fees with the Basic variable product. There loan processing department is efficient and provide good post settlement service.
Whilst there Basic variable loans is good at the moment they do not offer the most competitive fixed rate. Depending on which way you want to go, like every lender they have their niche products.
cheers,
Have you got someone who can go guarantor for your income to prop up your serviceability. this way you can secure the property.
regards,
Yes Richard. It won't be the last either.
regards,
Back to the original question. X Inc i believe are a securitised lender, they use products equivalent to Challenger and Firstmac. The problem with these Non Bank lenders are the break fee's. Generally they are applicable in the first 5 years of a loan, if it is to be refinanced. And they can have astronomical break fees up to 2.5 times your monthly payment.
The other thing to take into consideration is the .92% discount off the standard bank variable rate loan. In the past the banks variable rate loan's have been equivalent. But in recent times they have all past on different loadings to the standard RBA's .25%. So this leaves the question .92% discount off who's variable rate?
the best variable rate loan right now is CBA and Westpac, both at 8.97% p.a. So theoretically they should be able to offer you 8.05% p.a.
There are genuine discounts out there with out the hidden break cost's, you just need to know where to look, and with a more recognised lender. A .85% discount off the best standard bank variable is very realistic. Not only this you'll get professional post settlement service, you'll get a 100% offset account with easy access to your funds with no on going fees, and very minimal set up costs; and you'll avoid the hefty break fee's if you decide to discharge your mortgage within 5 years.
A good Broker will know where to direct you.
all the best.
When taking into consideration high LVR refi's most lenders will go up to 90%. 95% LVR's with caplitalised LMI are basically 97% lends. Bare in mind you'll need a genuine reason for cash out when talking LVR's over 90%. You'll need to provide an explanation as to what those funds are to be used for. Hi LVR loans have stricter Lending Policy's and end up more costly.
In my experience ANZ pre settlement and post settlement is far superior judging by the loan processing department and turn around time's at St George.
regards,
Hi Jeff,
if you have a base security to use with plenty of equity you wont need to go down the path of a development loan. A capitalising Line Of Credit will probably be sufficient, Although i don't know all your circumstances to recommend this.
Development loans can be quite different from one and other, but when your talking development loan's your talking commercial loans. Historically commercial loans attract higher interest rates and other costs but depending on what the funds are used for there are very competitive rates out there which are sometimes on par with residential rates, it all depends on who you talk to.
good luck!
Hi Mark,
you'll have to check your loan policy. Most variable rate products will allow you to 'park' your cash onto the loan with a full redraw in the future. This would be the cheapest way to go.(if not you might want to consider switching). It sounds like the IP has positive cash-flow, which is a great place to be. Depending on whether your IP loan is P&I or I.O the benefits will speak for them selves, not only would your monthly interest charges reduce, you'll be paying more off the principal if its P&I. If its not i'd consider switching to P&I to eliminate the debt.
Also be aware P&I loans are reducing loans. So whatever available funds you 'park' into there, over time the full amount wont be available for redraw because the loans have an amortising limit. This means the facility limit reduces hence reducing the amount you'll have available.To access the full funds in the future you might require a refinance.
My suggestion is do something rather than nothing, if your unsure which way to go put the $50k where its easily accessible in the future. But don't just leave it in a interest bearing account because you never get the same benefits as offsetting it on your mortgage.
regards,
Hi Damien,
In response to your question PPOR stands for; Principal Place Of Residence. e.g .Owner Occupied.
Here's a couple of things you should take into consideration. As discussed in earlier post's LVR has to be considered. But the other fundamental that you have to take into consideration is serviceability. If you already owe above $350k you'll have to be earning a healthy income to borrow the same. You might want to work out how much money per week your prepared to commit to another mortgage, without sacrificing lifestyle too much.
Have you considered paying some of that owner occupied debt first, because there's no tax deductions for personal debt. As your aware taking 30 years to pay back a loan you'll be paying up to 3 times the initial loan amount back to the bank.
Kind regards,
