Forum Replies Created
To clarify, with Citibank the LMI is applicable on lending over $500K on 1 security, however $500K plus on multiple securities should not attract an LMI premium. 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 Michelle,
For lending over $300K the Mac Bank saver express is an option, LMI covered at 80% LVR with step down rates over 3 years, However the Rams low doc variable product may possibly be a cheaper alternative.On the other hand a few of the Major lenders low doc products may be worth considering depending on the LVR you require, I don’t mean to ad confusion here its just impossible to suggest the correct lender/product etc without all the relevant info, 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.
If you increase the rent this will increase your income and thus increase the level of serviceability over future debt/loans/finance.
If you increase the value of a property this will increase your Equity and if the property is held as security over a loan i.e. encumbered/mortgaged the LVR (Loan To Value Ratio) will decrease, allowing you to access the available equity, providing you can service/repay the increased loan amount. 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 Giddo,
There are a large number of lenders that offer low doc products with an offsett facility, the correct lender product etc will depend on your personal situation investing plans etc., 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 Giddo,
A 100% offset is the way to go based on the info you have supplied,
You will also have the option of making the repayments based on the original loan amount regardless of the balance in the offset account, forget the LOC you don’t need it. 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 ET,
You have a fair amount of equity available in the land component, Another option to consider:Current land loan $130K against $330K value
Construction cost $300K
Approx. end value $660KBorrow @80% of completion = Approx. $528K
Minus $130K current debt = $398K
Minus $300K construction cost.
= $98K available.A higher figure is obtainable If you were to increase the LVR, I hope this helps. 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 Andrew,
Need more info to suggest the available options and correct structure etc,
If your lender is playing hard ball then it may be time to move on,
However in certain and sometimes rare situations it can be more cost effective to negotiate better terms with the current lender rather than refinance to another credit provider. 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 Mal,
If you refinance to a different lender you will incur the full LMI premium again, 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.
No Doc finance is available @ approx 6.90% 6.99% etc at 70% LVR funder pays the LMI, ABN can be held for 1 day with no minimum net assets, also available for companies and Trusts.
Low Doc products @ 80% LVR is available where the funder covers the LMI Rams etc, higher rates apply approx. 7.39%
80% Low Doc is available at lower rates from a wide range of lenders if your content to pay the LMI premium on lending over 60% 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.
Hi Mothy,
I agree with the comments mentioned, if you have nondeductible debt (PPR Loan) and funds/savings available then you should consider placing your savings in an offset account linked to the non deductible debt,
Consider a split loan using your current property as security.EG,
Loan One.
Split 1: (current PPR balance) with 100% offset account linked, (place savings in the offset)
Split 2: 20% deposit and closing costs stamp duty etc for the IP purchase.Loan Two.
80% loan secured against the new IP.This structure will also avoid cross colaterisation and the need for Lenders Mortgage Insurance, 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.
80% Low Doc in a trust should be ok, subject to security/location,
Try Pioneer, GL, or source funds via a mortgage broker in Australia or NZ, 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 K.G,
In order to release further equity in the property your lender will carry out a valuation on the property, check with your lender on the fees and charges associated with this, as they will vary between lenders.You mentioned you are behind on few things, if thats the case then it may be best to wait until you have caught up on these issues before applying for further finance/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 Kim,
Most of the NZ Banks will lend to non NZ residents using your NZ property as security over the loan, most mortgage brokers in Australia and NZ will be able to assist, or you can deal direct with an NZ Bank,When you have released the equity via an NZ lender you could then use these funds to contribute to your Australian purchase and borrow the remainder via any Australian Bank/lending institution, keep in mind NZ rates are higher than here in Australia. 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.
If you are refinancing to another lender then you will be required to sign a discharge of authority form provided by the outgoing bank, if this is the case then call the bank and request the form.
If on the other hand your bank has security over two titles and the LVR on 1 title is sufficient security over the entire loan/debt, then the bank will carry out a valuation to confirm the new LVR and release the other title held as security,
I hope this helps, 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 Allan,
Based on the above info the short answer is no, it’s the purpose of the loan that determines what is and isn’t deductible debt.However if your intentions were to use the $70K for future investment then that is a different matter,
If this is the case then you should consider linking an offset account to your PPR debt and park the $70K in the offset until required for investment, this would help pay down your non deductible debt at a faster rate while the funds remain in the offset account.
I hope this helps, 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.
This depends on your lenders policy regarding LMI, I would recommend that you call your bank/lender and check with them, in most cases the bank will require/instruct a valuer on there panel to carry out the valuation. 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 Roger,
For Australian residents there are no restrictions on the required deposit, e.g. 20% – 5% deposit and no deposit 100% finance is also available. 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 Liz,
Check your private messages,
Hope it helps, 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.
ANZ in NZ will lend to non-NZ residents, as will most lenders in NZ.
These days most Australian based Mortgage Brokers can arrange NZ finance for Australian investors, the same applies to NZ Brokers, another option is to apply direct to an NZ Bank/lending institution, 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 Sam,
It seems you have a few options available to you,
Option 1, borrow 100% against the purchase and use your current funds for the development.Option 2, access 20% and closing costs from equity in your current portfolio and borrow 80% secured against the new purchase,
If you have equity this option would probably be more economical i.e. lower rates than 100% finance and no LMI.Option 3, same as option 2 but increase the equity loan to include development costs and park current funds/savings in an offset attached to PPR debt.
I hope this helps, 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.
