Forum Replies Created
Hi Ray,
It seems serviceability is not the issue, but the fact that your PPR is solely in your wife’s name, this is the reason the bank has requested your wife go guarantor, as in the banks eyes she is the owner of the security they are taking in order for you to borrow 105% on the new purchase.I’m not certain and I may be wrong on this point, but if you did access equity via an LOC on the PPR towards the new purchase you may have had issues with claiming deductions on that portion of the loan, as the LOC would be in your wife’s name. (What’s your take on this Terry?)
As others have already mentioned, this structure may only become a problem when the need arises to access further equity in the PPR.
BTW, ask your Broker about your wife providing a limited guarantee,
Sorry if this seems as clear as mud but it’s been a very long day & I need sleep, good luck with it all Ray, Cheers.Regards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi J & K
With $500.000 in current value and a balance of $400K you have $100K in available equity at 80% LVR to contribute to the new $1.5mill purchase,The new purchase financed at 95% LVR = $75K deposit required, that leaves $25K for closing costs stamp duty etc and possibly LMI, this will be tight, If this is the case and you come up short you could extract equity at a higher LVR from your current portfolio,
Of course this is all hypothetical subject to income, borrowing capacity, type of purchase, lenders policy & current LMI exposure etc, Cheers.
Regards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Terry I think the problem relates to servicing issues, hence the guarantor,
Grant, as you are on the top tax bracket it seems strange that servicing is the problem, however without being privy to all your details its very difficult to be certain,
If you want a second opinion regarding the ANZ decision, feel free to contact me with the numbers and I will estimate your max Borrowing capacity, Cheers.Regards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Ron & welcome to the forum,
It may be very difficult to finance, at best probably looking at commercial rates with a low LVR.Neutrally geared with no cap growth!!!
Regards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Also, a lot of I.O products have no limitations on the amount of extra loan repayments, hence more choice/flexibility.
But as Xena mentioned, everyone’s circumstances & long/short term goals are different, cheers.Regards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Ray,
A couple of questions,
1) Is your wife going to be included on the title of the IP, and does she earn any income.
2) Has the ANZ included the proposed rental return on the IP when calculating your serviceability for this loan, Cheers.Regards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
The Victorian grant is $5.000 the Fed grant is $7.000 a total of $12.000
http://www.sro.vic.gov.au/SRO/srowebsite.nsf/rebates_fhog.htm
http://www.sro.vic.gov.au/sro/srowebsite.nsf/rebates_fhog_FAQ.htm?OpenPage&charset=iso-8859-1
Regards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi RTC,
LVR = loan to value ratio,
As I mentioned earlier there are lenders that offer finance where no genuine savings is required, the LVR for these types of products are normally 90% to 95%, so you will need either a 10% or 5% deposit plus the closing costs stamp duty etc.Regarding finding a Mortgage Broker, there are a few mortgage brokers who regularly contribute to this forum that would be able to assist you I’m sure, Cheers.
Regards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Grant,
Without a deposit you will require 100% finance, you will also need funds to complete the purchase such as stamp duty etc, there are lenders that will lend 106% of the purchase price to help cover this but the rates are high,Have you considered using the FHOG to get into the market, as this may help with the closing costs,
On the other hand even with the FHOG and without any savings or equity you will still require a 100% finance product, Cheers.Regards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Thanks Jaypee, it’s a pleasure,
Its always nice to know we are appreciated, have a great weekend cheers.Regards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi NCN,
Here are the estimated loan repayments based on $250K @ 6.65%
$1385 per month Interest only repayments
$1604 per month Principle & Interest repaymentsYou may want to look at preserving the original debt if you decide to occupy the property in order to qualify for the FHOG and convert the purchase to an IP at a later stage, Cheers.
Regards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Niniebear
An interest only term will vary between lenders 5 to 15 years etc and then revert to a P&I loan for the remainder of the 25-30 year term, or at the end the I.O term you could negotiate or refinance to another I.O term,As Oshen mentioned most lenders allow you to make extra principle repayments with an IO product, however maybe a P&I loan would suit you best it all depends on your individual circumstances,
Keep in mind I.O repayments may provide you with more funds to service further debt and hence acquire more investments, Cheers.
Regards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi JP & welcome to the forum,
It’s hard to say what most investors do, but the majority of my clients do have their investment loans structured as interest only.Regarding your offset question, I would hazard a guess that the majority don’t use an offset, but I believe the offset will become more popular with investors as they become aware/educated of the benefits that a 100% offset account may offer over a LOC for instance.
Of course what is best for One may not be appropriate for another, as always individual circumstances will be the deciding factor when choosing the correct structure lender and product, Cheers.
Regards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Kudos to Oshen on a fantastic detailed reply,
Cheers.Regards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi RTC,
Some lenders will require 3% in genuine savings while others require 5% saved over a Six-month period,Also, There are certain lenders who offer finance with no requirement for genuine savings,
the correct choice of lender/product will ultimately come down to your individual circumstances, a chat with a knowledgeable mortgage broker will help you decide on which is best suited to you, Cheers.Regards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi B,
Regarding borrowing through a company, most credit providers will require directors guarantees, servicing/qualifying will rely on income much the same as a standard finance application,
some degree of savings may be required depending on the type of finance product LVR or lender, again much the same requirements as a standard loan application,As Great Pig suggested, another type of structure may be more suitable, perhaps a Trust of some sort, Cheers.
Regards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
I have arranged NZ finance for many of my Australian clients, I am happy to help feel free to contact me with the details, Cheers.
Regards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Gatsby,
Snap’
CheersSteven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Colobok,
Talk to Dale G at Gatherum-Goss & AssocPostal Address: 1 & 1A, 87-89 Colchester Road,
Kilsyth, Victoria, 3137
Phone: (03) 9723 7699
http://www.gatherumgoss.comRegards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
No unfortunately it does not work like that, but depending on your lender and the time frame of your current loan you may be eligible for a part refund on the LMI premium,
If you do refinance at 95% you will have access to $74.000
EG, property value $320.000 @ 95% LVR = $304.000
Less current loan balance of $230.000 = $74.000 available. Cheers.Regards
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
