Forum Replies Created
TO: v8ghia]
RE: Fees on First Permanent's stand alone No Deposit Investment Loan
OK – First Permanent does not rely on LMI at all. Rather, it requires payment of a Mortgage Risk Fee (MRF) to an unrelated 3rd party. The MDF (which is not insurance as such – but a loss sinking fund) is 2.57% of the loan amount (incl.GST). That MDF fee can also be capitalised / added to the loan to a maximum LVR of 106%. The exit fee (called a Deferred Margin Fee) is 2% of the initial loan value if discharged in the 1st 5 years plus a small Deferred MDF fee of 0.77% if the loan is discharged in the 1st 5 years. At the end of the day – it is a small proce to pay for hot having to put the family home (or other IP) on the line and put in little or no cash of your own. For all this – the rate of 8.8% p.a. is cheap when the major banks are charging 8.32% for an owner occupied standard variable rate product with an LVR below 100%.The product is Full Doc.
Regardsm
N.D.King
TO Richard Taylor,
This IS NEW – There is no other lender in Australia that will advance 100% of the valuation PLUS all the stamp duty costs on a 'stand alone' security basis. First Permanent will capitalise costs up to 106% of property valuation. Other lender WILL require additional supporting security. It is also Australia's first ever 50 year loan.
Please provide a concrete example of a similar investment loan product that lends in excess of the value of the investment property on a 'stand alone' basis (i.e. not supported by additional security).
Regards,
N. D. King
Here is your solution:
First Permanent (a lender owned by Merrill Lynch) has just brought out an investment loans that is 100% No Deposit PLUS lends you all the Stamp Duty – Best bit is they DON'T REQUIRE ADDITIONAL SUPPORTING SECUIRTY of any kind (such as your family home or other IP). They also offer 3 years interest only and variable or fixed for 3 years (plus will lend on a 50 years term)No other lender in Australia has a loan like it. Given the benefits it delivers, its 8.8% p.a.interest rate is good too (tax deductable anyway). No Cross Collateralising of Properties on No Deposit + Stamp Duty Lent. Fantastic – Details @ http://www.firstpermanent.com.au
Jayro,
First Permanent (a lender owned by Merrill Lynch) has just brought out an investment loans that is 100% No Deposit PLUS lends you all the Stamp Duty – Best bit is they DON'T REQUIRE ADDITIONAL SUPPORTING SECUIRTY of any kind (such as your family home or other IP). They also offer 3 years interest only and variable or fixed for 3 years (plus will lend on a 50 years term)
No other lender in Australia has a loan like it. Given the benefits it delivers, its 8.8% p.a.interest rate is good too (tax deductable anyway). No Cross Collateralising of Properties on No Deposit + Stamp Duty Lent. Fantastic – Details @ http://www.firstpermanent.com.au
Interesting to read about your HECS issue. A new no deposit loan product that also pays off all your HECS is now available. Details are on http://www.hecs.com.au The company that developed the loan is First Permanent (a subsidiary of Merrill Lynch).
The loan benefits are explained on the web page by use of an example (as follows)
Rebecca is a lawyer with 5 years post-graduate experience.
She currently earns $85,000 per year gross. She wanted to stop renting and buy her first home.Although the banks were more than willing to lend her money, the amount they were prepared to lend her was not enough – all because of her high level of HECS repayments. Like you, Rebecca had an outstanding HECS debt. Hers was $17,000.Rebecca was therefore paying annual income tax of $23,150 (at 2006/07 tax rates plus 1.5% Medicare Levy) PLUS she was paying compulsory HECS repayments of $6,800 per year. Rebecca was paying a total of $29,925 in income tax and HECS payments to the government each year – and that was before she paid her rent. Graduate Home Loan was the answerRebecca took out the Graduate Home Loan. She now has a no-deposit home loan AND her HECS Debt has been repaid in full.The Key Benefits to Rebecca were- She now has an extra $6,800 per year in after tax income that she is using to help pay off her no-deposit Graduate Home Loan. This extra $6,800 allowed Rebecca to borrow around 20% more than she could with the HECS debt still owing
- She got to keep all of the $7,000 First Home Owner's Grant
- She received a 10% discount on her HECS debt worth $1,700
- She got into the property market years sooner
- She is no longer paying 'dead' rent money.
- She did not have to save for any deposit.
Very inovative.
