Forum Replies Created
Hiya
If you have no intention of purchasing an owner occ in the future – and if cashflow enables it then I’d consider going down the P&I path.
With the rate difference between P&I and IO widening these days – you’ll probably find that the monthly repayments aren’t going to be drastically different (depending on how long your previous IO term ran for).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Should we just go with the cross collateralise loan option?
Nope.
Best to keep the loans uncrossed.
It’s easy to do. Assuming you have one PPOR and are looking to purchase one IP. The structure is pretty much:
PPOR
Loan 1: Current mortgage
Loan 2: Equity release to cover 20% deposit and stamp duty on IPIP
Loan 3: Investment loan to cover remaining 80% against IP (deposit comes from loan 2 above)Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
What sort of investment income is it James?
If it’s dividends – and if you can demonstrate some consistency in terms of the duration you’ve held the shares, etc then you can use that income for servicing.
However – not having earnings from s/e or PAYG sources will likely cause headaches unless your investment income is high.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Matt
Are you looking to do an equity release for $200k at 87% ?
If so – that’s not an easy deal to get approved!
Banks aren’t overly keen on large cashouts above 80% LVR these days. If you’re going above 80% you’ll most likely need to have evidence of what that $200k is being used for.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Contract employment is quite common – and certainly doesn’t preclude you from borrowing.
Factors that come into play are the size of your deposit, the length of time you’ve been in the industry you currently work in and the duration of your contract.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
You could try releasing equity against an Australian owned property – however, the “purpose” of funding an overseas property might not be accepted by some lenders.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Agree with the guys above – keeping the account active to enable you to reinvest sounds like a good option on the condition that you won’t be tempted to spend the funds for non investment purposes.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hiya
Richard above would be a good starting point.
Sounds like you need a decent, IP savvy broker rather than a financial planner.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
try Paul at Price Financial
http://www.pricefinancial.com.au/%5B/quote%5D+1 for Paul – good guy and very switched on.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Paul Gerrard
Accounting & Tax Manager
Price Accounting Services Pty Ltd
http://www.pricefinancial.com.auUnit 11, 1 Central Avenue
Thornleigh NSW 2120
Ph 02 9875-2444 (61-2-98752444)
Fx 02 9481-0594 (61-2-94810594)Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Can I refinance back to 80% LVR or even just refinance to a lower rate at the same LVR with another bank?
Hiya
Probably not with a mainstream lenders unless you are deriving a lot of income from other sources.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Out of interest, what is stopping all new applications applying for a home loan and then renting flats out after their loan has been funded? Do lenders do any checks? Or is this a common trick lending managers are now adopting to reduce interest rates for clients?
There’s nothing stopping them – but if they do get caught they may be penalised. It’s not common at the moment – but no doubt lenders will become more observant with tracking this into the future.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Just wondering for all the investment gurus in this forum, what’s your view on HTW and do you think their valuation figures are accurate?
Hiya
As a very general rule – valuations for refinancing tend to be on the conservative side. It’s not uncommon for a valuers estimate to be less than the client believes their home to be worth.
On the flipside – it’s not uncommon for purchase valuations to come back at the purchase price. It’s quite rare for them to come in less.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I have now turned my attention to flipping some properties to replenish my cash and pay down some debt. My question is, does anyone here have any experience in getting access to a property to begin renovation works during the settlement period to keep holding costs down? If so, what are the risks/if any associated with doing this.
Hi there
Yep – I’ve done it before.
It was part of our offer. We required access to the property post exchange/pre settlement to carry out some renovations.
Our solicitor put something in writing to the owners solicitor – the owner signed off on it and everyone was happy.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Doesn’t sound like an independent buyers agent at all.
Sounds like you’re simply dealing with a real estate agent who’s trying to sell you a property.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi there
Which state are you looking to purchase in?
BA fees vary quite a bit – on average I’d budget circa $10k
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
You are most likely going to take out a loan to buy a property but how do you know what your budget is? I am guessing you go to the bank and they tell you.
I’m biased but I’d have a chat with a good broker who has access to dozens of lenders.
They’ll be able to run the numbers for you.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hit up your current lender first and see if they can provide any further discount.
There’s some second/third tier lenders that are reasonably competitive but have terrible borrowing capacity calculators for investors – such as Suncorp, ING etc
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
From a lending perspective – you’ll need to use a lender that’s ok with a dual occ construction. Not all are keen on them.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hey Zen
Definitely sounds like a second opinion is worthwhile – and you can’t go wrong with Corey above.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
