Hi Redwing,

Having had a little experience dealing with American brokers I can say there is no way you can compare the US market with the Australian market. The vast majority of Australian brokers do not charge the client anything extra and rely solely on the commission paid by the banks which is not the case in the States. However, I do think its prudent to take into account fees and features rather than simply relying on interest rates. A good broker will take this into account before presenting options to you.

Regards,

Mortgageman

Knowitall,

From what I’ve read here, I can certainly believe that your services are unique.

All lenders will take into account current living arrangements. It is possible to have no current rent included in serviceability if your parents provide a stat dec stating this.

You don’t have to declare any income at all for a no -doc, simply provide your ID, so at 65% leverage, the lenders for these products do not even need to know (or want to know for that matter) your employment status. If an investment property you can obtain finance by applying as a professional investor, even if your unemployed. We have experienced this scenario previously and while many lenders won’t accept this scenario, I know some will. You may have trouble at 80% leverage, but the fact that you are unemployed does not automatically disqualify you from obtaining a loan.

Allymac,

You could also explore the option of a no deposit loan from one of the banks such as St George or ING.

Cheers,

Mortgageman

Hi Dianne,

If you have enough equity you would be able to borrow against that and also use the rental income from your existing property. Also if your under 65% LVR you will be able to obtain finance without declaring any income. Good luck with your investing career.

Mortgageman

Bwendan,

A Bachelor of Commerce can be extremly boring and tedious in first year as you have no choice over your subjects. However later as you choose which stream you go into, it becomes ok. And your job possiblities are extremely wide. You just have to stick out first year.

Mortgageman

Hi Megan

Just to answer a few of your questions:

1) The property will be classed as commercial unless you live in it, in which case you will be able to get an owner-occupied loan.

2) Most brokers won’t charge you for the work they provide as they are paid commissions by the lenders. A good broker will save you lots of time and hassle and may be able to find you a better deal than you can find yourself, but then again I am biased .

3) The type of loan you should look at depends largely on your plans for the future. An interest only loan will enable you to increase your cash flow, thus potentially enabling you to place cash in other investments whereas paying off the principal will allow you to gain greater equity in your property, which can be used for other investments. A lot will depend on whether you are looking for a long term investment or simply wanting to hold on to the property for a short to medium period of time.

4) A low doc loan is a loan product that requires minimal documentation. It is suitable for self-employed people, or those who for one reason or another are unable or unwilling to provide proof of income or financials.

5) As I’m from Melbourne, I’ll leave it to someone else to talk about B&B licensing fees in NSW.

I hope this is some help to you.

Mortgageman

Hi Mr VIP,

It is possible to get 6.84% on a 100% loan as long as you comply with the serviceability criteria. If you can raise the 5% deposit, there are many good loan products out there. Also, be sure to look at the comparison rate as well as the interest rate to make sure your not paying more overall for a lower interest rate. I hope this helps.

Good luck,

Mortgageman

Tools,

You lend them the extra money and secure it by way of a second mortgage. The problem will be in finding a lender to fund your buyer who will allow this as it is a form of vendor finance, which most lenders do not like.

Mortgageman