Forum Replies Created
Hi Simon,
The rates for the 95% low doc products vary between lenders and are relatively high, approx. 8.65% to 9.10%. 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 Nats12,
At 80% LVR you have $26.000 available in equity,EG, property value $320.000 @ 80% LVR = $256.000
Less current loan balance of $230.000 = $26.000 available.As the equity will come from your PPR I would suggest a split loan, One portion of the split will be your PPR loan $230.000 (non deductible debt) and the other portion of the split would be the $26.000 investment equity loan (deductible debt)
The $26.000 is then used as a 20% deposit on a separate 80% investment loan for the new purchase,
Structured this way you will be borrowing 100% of the new purchase and your PPR and IP will not be cross-collateralized, I hope this helps, 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.
There are also a few credit providers offering up to 95% LVR on low doc finance, this is due to the recent arrival of Mobius the mortgage insurer behind most of these new 95% low doc products. 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 mja.
Yes you are correct, St George certainly has been offering these discounts for a while now, Cheers.Regards
Steven
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.
Unfortunately I don’t see how you can avoid paying mortgage insurance, unless you can find the 20% deposit from other means,
To extract further equity for the deposit from your current properties will increase the current LVR to over 80% and as such mortgage insurance will apply, Cheers.Regards
Steven
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.
You would need to increase/refinance your current loan to 90% or 95% LVR and you will incur mortgage insurance.
E.g. Combined property value = $510.000
Equity @ 90% = $459.000
Less $410.000 balance owing = $49.000 available as a deposit on the new loan.Regards
Steven
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.
Today Pioneer announced an adjustment on there 3 & 5 year fixed rates on Trans-Tasman lending,
3 year fixed 7.75% to 7.65%
5 year fixed 7.80% to 7.60%Regards
Steven
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 Pasanbec,
Based on the info you have supplied you will be unable to avoid mortgage insurance, Your two current properties are highly geared,If you access further equity in your current portfolio to use as a deposit on the next purchase you will incur mortgage insurance, as the LVR (loan to value ratio) on your current properties will be over 80%. Cheers.
Regards
Steven
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.
Pioneer will finance up to 90% LVR in NZ, but this is subject to LMI policy, I have found the location is the main deciding factor, Cheers.
Regards
Steven
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 Pasanbec,
Unfortunately the figures in your last post gives a whole new perspective to your situation,You mentioned the bank included the IP as security over your PPR loan, I assume you did this to avoid LMI, if this is the case then your current available equity at 80% LVR is Zero
E.g. Combined property value = $510.000
Equity @ 80% = $408.000
Less $410.000 balance owing = neg $2.000You may be able to access further equity at a higher LVR 90% 95% etc, but mortgage insurance will apply, Cheers.
Regards
Steven
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 Pasandbec,
I would suggest you have the proposed IP purchase as security over the loan, You could achieve this without the need for mortgage insurance providing you have enough equity in your current property,Basically you would borrow 80% secured against the new purchase and the remaining 20% and closing costs stamp duty etc will come from equity in your PPR or current IP, all loans would be set up independently to avoid xcoll of the portfolio,
If you use the equity in the PPR to raise the 20% then I would suggest you consider a split loan to keep non-deductible debt separate from deductible debt.Cheers.
Regards
Steven
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.
St George offer a 0.70% discount for borrowings in excess of $250.000 in Vic, Qld, WA, SA, Tas & NT.
For NSW & ACT the 0.70% discount takes effect at $500.000 total borrowing, Cheers.Regards
Steven
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 Newstart,
Regarding finance, feel free to contact me anytime for assistance, cheers.Regards
Steven
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 Peter,
Based on the information you have provided I’m not convinced that you are maxed out with all the conventional lenders,
Keep in mind the serviceability assessment criteria will vary dramatically between lenders, Cheers.Regards
Steven
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 Mitm,
I think you’ve got it, However I prefer an interest only loan to an LOC,
The transaction account could be transferred across & linked to the new PPR loan when the time arises, Cheers.Regards
Steven
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.
Apologies Simon I dint see your post, I was about to submit my reply but was distracted by a phone call, Cheers.
Regards
Steven
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 Cheryllee,
Its hard to give specific suggestions with out being privy to all the details, but I would not suggest a LOC but rather an Interest only loan on the investment properties as this will give you the flexibility to make extra repayments at your discretion. Cheers.Regards
Steven
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 Balihai & welcome to the forum,
Regarding finance,
Your Bank has Xcolled your portfolio, when it seems there was no apparent reason or need for this to occur,E.g.,
PPR value $210K Owe $130K
Equity available @ 80% LVR = $38.000IP purchase $90K
Finance required @ 80% LVR = $72.000
20% Deposit & funds to complete Stamp duty etc, = aprox $21.000Based on these figures you had sufficient equity in your PPR to keep the two loans separate and avoid cross colaterisation,
Also, I estimate an extra $17K would have been available to park in an offset attached to your PPR debt, Cheers.Regards
Steven
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 Happy Bandit,
The amount of equity remaining will depend on the value of your PPR less the balance remaining on your current loans that are currently attached to your PPR.The amount of equity available will vary depending on the LVR (Loan to value ratio) but I would suggest no more than 80% LVR in order to avoid LMI (Lenders Mortgage Insurance)
I’m also concerned on how your finance was originally structured in order to access the $40K or $50K in equity for deposits on the investment properties.
I will need further info from you, but I think it best for your sake that you contact me by phone or email to discuss this in much more detail as I suspect you may be on a very steep learning curve regarding finance structures, Cheers.
Regards
Steven
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 Happy Bandit,
Im not sure why you borrowed 110% for the investment properties when you have equity in your PPR?Regarding your question on obtaining deposits, you could use the equity in the PPR, currently $114.000 @ 80% LVR, Cheers.
Regards
Steven
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.
