Yep definitely dont think you can get away with not having to pay LMI again if you switch to another lender. It doesnt make sense that you could as LMI insures the lender. So different lender new LMI which is cost passed onto you. if you stay with the same lender then you have already paid their insurance premium and therefore a change in…[Read more]

Hi,

I would like to point out a benefit of cross collateralising. If a set of properties are cross collateralised there are certainly cons if property values go down in value. But what if they go up?

No SALE scenario:
If a cross collateralised set of properties go up in value and especially if one of those properties are owner occupied or PPOR…[Read more]

Hi se7en,

I only recently realised you are talking to me:) need to get used to this. Finance Broker or Kathlene is fine.

If your mortgage is currently for a rental property I would say the tax savings you get on the interest paid would outweigh the expenses on the personal loan that may/may not be tax deductible. In terms of financial cost…[Read more]

I would concur to pay off the personal loan to increase serviceability. Although I did have a personal loan once on a flat rate and paid it off early with no penalties. So worth finding out what your terms are on the flat rate.

That’s fine Jamie. Thanks for the note. It does seem a little hostile here though. I’ve been thumbed down for stating my point of view in other threads. It seems like this is the Big Boys club and somewhat discriminating towards new members.

I can see you are a well established user and member of the site Richard. And I’m sure its doing well for you. 10k in posts? Its in full view for everyone to see. I’m not pretending to be someone I’m not. I’ve identified myself as being new to the forum and I was merely responding to this persons request for a broker. No need for you to contribute…[Read more]

Hi,

I’m a broker too. New on the forum. You are welcome to check out my profile on linkedin (link is in my signature below). Sorry I dont have a recommendation for anyone in Sydney but have done a few interstate deals myself. Some of my clients moved over there and have stayed with me. Because we haven’t met you will have to send me certified…[Read more]

Yes that’s right but so will Macquarie.

AMP does take actual repayments into account. I would say there could be other things that could affect your servicing at AMP. Like postcode of the property. If it is in high density or regional areas you could be looking at less rental income taken into account sometimes only 50% is acceptable. This could affect you with any bank however so you…[Read more]

I’ve just spoken to Macquarie and got confirmation that they will consider foreign income. Payslips, bank statements and tax returns will be needed to confirm whether it is acceptable and as i mentioned before strength of the overall deal. Since you are planning to stay within 80% LVR, John, I would recommend Macquarie as an option for you to…[Read more]

Doesnt anyone else use Macquarie? They can be as flexible as AMP within their DUA policy. I just did one this year for another investor with a hybrid trust setup. He just got his 11th property on portfolio using MACQ. He did not have the other properties with them yet. No foreign income though. I’m meeting up with Macq today and will find out…[Read more]

Hi John,

Read this regarding Delegated Underwriting Authority (DUA). Explains everything you need to know including how it can help you.

Delegated Underwriting Authority

Hi John,

with 2) Each bank sees your setup under a discretionary trust structure as one. So setting up multiple discretionary trust structures and going back to the same bank will not do any good as they see you as the same guarantor on all the investments. The trust structure protects your assets and does not protect the bank. Whether you setup…[Read more]

Hi John,

There are 3 issues to deal with here.
1) Allows foreign income. Chinese RMB

2) The debt ceiling. With any one lender this is usually around 2M. Sometimes less.

3) A lender that will be comfortable accepting a discretionary trust setup as the borrower.

You may have to spread out the purchase of 2 lenders possibly 3. As you have 5IPs…[Read more]