To narrow down the selection criteria, I like to look at the comparison rates for each loan that I am considering. Comparison rate legislation came in here in Qld this financial year. If you don’t know what a comparison rate is it would be worth while having a read about them. There are a lot of articles around at the moment that go into…[Read more]
Terry is spot on!!! The premium that you pay for LMI is a scale from 80.01% to 97% +. LMI is calculated as a percentage of the loan amount. So the premium that you pay is relatively cheap in the low 80%s[] and can be very epensive at 97%!!.[] Obviously more risk to the insurer as your deposit decreases.
My brain is not working at full speed this time of night, but i seem to remember reading somewhere that contracting to enter into a future contract is not legally binding.
Eg if you were to draw up a contract with a potential wrapee to enter into an installment contract/ lease option agreement in the future, it would not be binding.
Why do you want to avoid cross collateralising your properties? What is your investment strategy?
It is hard to work out whether your scenario relates to cross collateralisation or not. Ask what the security is for your new loan. If it is only the new IP, then it should be a stand alone mortgage.
What the NAB may be doing is increasing…[Read more]
It is always handy to have the ersidex report before you start negotiating, but having said that, it you have done your due dilligence, and the cashflow looks good, I would not be overemphasising the purchase price. If you are obtaining finance, ask them to do a full valuation on the property. (Hopefully the offer is subject to…[Read more]
Institutions look at two main criteria when you apply for a loan. Capacity/servicability and Equity/Deposit. These are the limiting factors when you are trying to expand your portfolio (before being maxed out & using Steve’s advice).
The capacity/servicability side of things is all about the question of what size loan can you afford…[Read more]
It is amazing how much valuable information you can gain from a neighbour. Current tennants of potential investment puchases are also a great source of information. I have had a few happily give me a tour of the property pointing out everything that needs attention/ fixing. One of them did a…[Read more]