Hi Johann. Agree with John – in the sense that you need to be comfortable with the commitments. It's great to own multiple properties, but if they cripple you financially, it aint worth it.However, Im a big believer in turning money into money. 20% equity in property can get you off and running with another property. You dont need to look big,…[Read more]

CJ, depending on loan size, a few good ones to look at:Bankwest  – 7.35% with 100% offset (7.30% for > $1m)ANZ One – 7.37% with 100% offsetWestpac – 7.37% with 100% offsetAlso, limited lenders allow 100% offset on a fixed rate, 7.35% 3yrs, which interestingly enough also has a redraw facility (not common with fixed rates)Hope this helps.Rgds,Rob

Cabo, can only agree with above. Westpac do many things the hard way. It should be the security nature that determines where the application falls; consumer or commercial

Commercial security, whether it be an individual or corporate/trust borrower will be treated generally over a reduced term, 15-20yrs, with rates on average 0.5-1% higher than…[Read more]

Redwing, thanks for the introduction. My Fantasyworld Mortgage Specialist has just given me the approval to buy Brazil! Even more, the first 75 years are to be interest free! I love their “wink wink” contract-free “can do” attitude!

Rob

Rob Whyte
Certified Mortgage Consultant MIAA

Principal & Licensee
The Mortgage Gallery
e…[Read more]

Hi Lawrence, look at IMB (illawarra Building soc) have set deals with them to 75% quite comfortably, must be arms-length, nothing speccy, also paramount mortgages will do 80% need be (havent used them) but looked seriously a few times.

Regards,
Rob

Rob Whyte
Certified Mortgage Consultant MIAA

Principal & Licensee
The Mortgage Gallery
e…[Read more]

justgjt, it is the opinion of some banks that this area (as Richard aluded to) can be hard to market for a quick sale.

However, I am WA based and have just returned from Karratha last week presenting the changing views of some lenders in this region to real estate agents and builders. Obviously with you having some knowledge of the region, would…[Read more]

Achw, also, when looking stay away from the lenders offering super low rates, they’re generally an intro rate, reverting to a standard variable or higher rate after a specified period time (6-12m). They will generally always be more expensive compared to an overall lower rate upfront.

They will have exit fees and/or other costs if you choose to…[Read more]

Dallasm, vacant land is not a security many lodoc lenders will accept. Also, the few that do, will limit the LVR to generally 80%

I know of some that will do 90% on vacant land as lodoc, but will charge higher rate/fees, something you said you werent prepared to do.

I tend to agree with Simon, if you’re pushing your limits with servicing…[Read more]

Great idea John. This is the enthusiasm and interest that I enjoy most on this list. I wish you well in your endeavours to financial freedom!

It is good to talk with likeminded people, it helps solve problems. I have had some good advice from people on here so I hope you are able to find people with similar aspirations as yours to help you…[Read more]

ET, Stu’s pretty spot on. Minimum 2 yrs under your belt and generally accepted by most.

However, if it’s paid quarterly or even monthly, dependant upon the type of work, it may be considered as “prop up” income to mitigate a shortfall in servicing and you may have success with even as little as 12 months, however would need good confirmation of…[Read more]

ned, if you just amortise/reduce the loan to within 20% within 12 months, you quite possibly wont get it. You’d need to close down / terminate that loan contract to stand a chance.

If you setup a new loan with your bank to payout the old loan, you wont pay stamping again, standard fees/charges, however may be elegible for rebate. Again, check…[Read more]

Unfortunately, the only way to have one loan is to break the other. However, you say you’re fixed at 6.79% enquire with your bank the “ERF” or Economic/break cost of the fixed rate. You may find it may be negligible if any at all. However, generally in a falling market the exit fee increases (as the lender would prefer you to remain at a higher…[Read more]

S.O. lodocs are an option, however most lenders only recognise lodocs with an ABN being registered 2yrs or greater and usually to a maximum lend of 80% (or 82%) Im assuming neither of these are options?

So unfortunately I think you may be dead in the water because of the LMI and ABN issues. However, saying that, I do know of a lender that MAY…[Read more]

Hi Kwaidan,

not sure if you’re earning any income in Aust (ie: lodging an Aust ITR?).

2 options – throw down all deposit to minimise mortgage and respective repays – look at i.o vs P&I, depends upon your strategy. Being non-res, the IP really wont provide too much benefit to your o/s income. Not sure about Japan and their tax laws, but if your…[Read more]

Sampson, this can be handy! If you’re selling through an agent, the agent can use it as leverage to potential buyers, by stating that if they ring “Bill” and are elegible for finance, he will present their offer to the vendor (yourself) in the best possible light. They dont necessarily have to proceed with Bill’s finance.

Helps weed out the tyre…[Read more]

Maruco, it’s the land component that you want to “hold” as long as possible. Improvements on land, in this case a dwelling, are a depreciable item. Although property prices increase over time, the dwelling in fact does the opposite. Bear in mind, all properties will require maintenance, it’s like buying an old car vs. new car. If you hold it long…[Read more]

Another option, if you’re chasing a prof package purely for rate discounts and offset, Macquarie offer a fairly good product, they offset on their basic product, giving you a fairly competitive rate without the annual fees. Also, lenders offering fixed 3 yrs with offset AND redraw on the loan.

Prof pkgs have their merits, but sometimes are over…[Read more]

Serviceability is always the problem when you adhere the buy&hold policy.

Banks become more and more conservative the more your exposure increases. Some banks limit borrowing percentages, lower than 80% as your loan book with them grows.

One of the biggest traps, is cross-colateralisation. A mouthful, but simply put, the banks cross-lend one…[Read more]

Also referred to as lite doc or easy doc, they refer to the application paperwork. Even still, it’s not exactly reduced much !

Another main difference worth noting, is lo-doc loans are offered by most banks and lenders in one form or another now. Banks and lenders securitise their loan books with these sorts of loans, which requires mortgage…[Read more]

Hi Burlboy, as Megan and the others have alluded to, equity can be redrawn and made availanle via a line of credit or fully-advanced term loan.

Unlike the rest of the country, our WA market still appears to be very strong even in the rural and south-west area. We just settled on an IP in Busselton 2 months ago and still amazed at the interest in…[Read more]