There is no such thing as a 'normal loan'. You can have an interest only loan on the house you live in, and you can pay p+i off your investment property. Just based on the very basic summary you have provided, it would probably be suitable to structure your loan in the following way. Take out a competitively priced loan with an offset account, and…[Read more]

The pre approval is basically just showing you have the income to service the intended loan amount. As credit policy and restrictions change almost daily in the current lending climate, your pre approval is not worth the paper it is printed on. Especially without a security property selected. Just find a suitable property, and apply with the…[Read more]

Mills, I believe that becoming unemployed would not be something you would be planning for. It would not change the variation too much though, as your main PAYG income is what the variation is applied to  ie no salaye, then what are you varying? You would not be paying tax. If you resume your employment and your annual income drops as a result of…[Read more]

I understand that they are not in favour, and each broker will make recommendations case by caes. Taking into account the international banking climate and the uncertainty that has occurred in the last 12 months, ING's stability in the global makret should be its biggest selling point. It is a very very strong balance sheet funder, and a stable…[Read more]

ING are one of the largest banks in the world. Substantially bigger than any of our 'socalled BIG foru'. The products are good, they have a lot of flexibility but the drawback is exit costs. This should not be held against ING, as they write a lot of wholesale business, and the DEF fees are set by the Mortgage Managers to a large extent. Just make…[Read more]

There is nothing wrong with telling the bank that you have borrowed the additional money. If you wanted to try and get creative, you could just as easily have told them you took out the PL to invest, and declared it on the app form anyway. As long as your income could service all your liabilities, there would have been no problems. When you sing a…[Read more]

Variations are not an exact science, and as such you should be fine as long as you are using accurate information and estimations. I believe the penalties will relate to deliberate manipulation of the figures for your benefit. As long as you are within a reasonable range of accuracy, and you square the figures up at the end of the year, you should…[Read more]

I would think you should be able to screw them for 0.6-0.7% without too much drama. If you are not a confident negotiator, try this – Call up and ask for a payout figure, then their retentions team will call and try to give you a better deal. Tell them the competition is offering 'x', and you are very upset. (Prior to this, check out…[Read more]

I hazard a guess it has come through only certain channels, as I can still place 80% Lo Doc through ING today. The trick is, ING have a tiered ranking system for mortgage managers, and they offer different thing to different companies. If you are not on the top of their favourites list, then you do not get the full gambit of loan products.

Taking into account the Commercial lending landscape in recent times, the fairest rates at the moment are anything under 10%Focus more on finding a funder that actually has money, and save yourself the unnecessary heartache of valuation fees and application costs chasing the bottom dollar rate. Go where the money is.

Is that a rough ball park figure when I have 3 credit carda and a novated lease coming out of my salary, or without. I prefer to go with Richard on this one, and ACTUALLY find out the figures before hazarding any kind of random guess. The details are what makes it fun.

Loan Ranger, You are correct. They have ridden out the storm, quite deliberately, and they have launched a 3.99% 1 yr Fixed Offste laon off the back of recent Government RMBS purchase. A great way to come back into the market with a bang. FMC have just been treading water for a whild, and being selective about where to utilise their money. Also,…[Read more]

No they have not Terry. There have been LMI policy changes that will make borrowing more difficult for most Lo Doc loans from 60% – 80%, but your statement above is incorrect. Maybe that information was passed on to you via a misinformed party?ING will still lend to 80% LVR, subject to LMI approval. ING will lend up to 60% Lo Doc without LMI cover…[Read more]

I just wanted to chime in  with my two cents worth. I agree with the well articulated responses above. CC is, and should ramain, avoidable in almost all cases. Keeping your properties seperate shouls always be the preferred option. By doing this, you are not protecting your assets, but you are protecting your position of control over your assets.…[Read more]

Syd, Providing you do not have any major credit default issues, then the information you have provided means you can go pretty much anywhere and get yourself a loan. Rather thasn send me a private message, I will just give you some advice for free. Decide if you want to be able to reduce your loan over the next few years. If the answer is yes,…[Read more]

Fixed rates do not necessarily affect variable. If anything, it is the other way around. The banks will have their teams of eggheads locked in back rooms studying what the market is likley to do, and then price their fixed loans accordingly. This allows them to hedge their bets on rate movements. The best thing about them is that they are a very…[Read more]

I think that the writing has been on the wall for a while, and the debt based economy we have been operating for some time is now becoming clearer to more people. It should be a great help for those in property and finance industries, and I sincerely hope it has the desired effect of more jobs and housing market activity. Bring it on.

Great post Terry. Well backed up and informative. That information should come in very handy to all the brokers and borrowers out there that ues this method, or use a 'Cash Flow' Style loan to run parts of their portfolio. Keep up the good work. Tmi

Duck, You should read more carefully before replying to some posts. The LOC comment above was referring to a LOC on the Investment Property, not taking out a LOC on the O/O to put a deposit on the IP. Also, I am well aware of the reason not to cross colateralise the properties, which is why my comments 'assume' nothing. What I wrote was to take…[Read more]