I wouldn’t suggest going to a branch with this but maybe Richard can look in to it for you.

CBA accept commercial as “collateral security” for home loans e.g. You can potentially use the commercial equity and the new residential without having to refi from NAB.

I settled a residential loan through CBA last year on this product. 2nd mortgage on…[Read more]

Allow me to be the bad guy…

Te wrote:
We used a broker to help us buy the business, set up a LOC with property equity and made it look more like and investment loan, rather than a commercial business loan. LOC $150K.

That’s OK. Honesty is not required by banks anyway.

Te wrote:
made small profits (08/09 $40K, 09/10 $80K) ……we are …[Read more]

It’s not impossible. How much debt do you have on the house?

CBA use Genworth not QBE (unless they are now the same).
Defaults under $500 can be approved without going to the mortgage insurer. Unless the loan is over 1M, default is over $500 or another breach ( there are a few others), the mortgage insurer does not see the deal. Bankers often hide behind the insurer rather than telling you they have…[Read more]

Sebastian Shauw wrote:

Equation: $350,000-$125,000=$225,000 the amount of equity in your home.
Maximum line of credit from your bank: $225,000 X 80%=$180,000.

This is the maximum the bank will loan in this scenario, solely based on the home’s value.

In addition to Richards comments the above calc is incorrect.

Home loan of 125k plus line of…[Read more]

Banks will generally take 80% of rental income and assume the other 20% goes towards agents fees, rates and maintenance etc (in my opinion that's quite generous for older properties that may require some work). They also assess on higher rates to ensure you can maintain your repayments if interest rates increase (usually assess 1% to 2% above…[Read more]

250k – can you let us know your bank? In some cases there are reasons behind this e.g. 1. If you have a good customer rating they may not need to value the property (your estimate may be OK)2. Some don’t charge valuation fees and do not have the ability to charge them via the branch. Because they are wearing the cost they only order the va…[Read more]

Hi Packer, CBA can generally uncross with no fees. Restructure via a 3 page switch application. Should be as easy as pie.

evernat wrote:
Hi allSo I go in to the commonwealth bank the other day to apply for my LOC to use for my deposit for first ip.They first ask me where I'm getting the rest of the loan for the ip , I tell them Bankwest.They proceed to question me why I would not just go with them for the whole loan ect.They tell me even if I had the loan with…[Read more]

Agreed with Marty. Land is OK up to 125 acres. Must be something else they don’t like so I’d get clarification…

If you take your 300k to 90% this equals 270k which nets a little cash to pay stamps etc. You already have your 5%.

It will come down to income.

I would say Richard is spot on here.

But if you want a more detailed answer here goes.

Acceptable existing income*
Plus acceptable proposed income**
less tax***
Plus neg gearing add-backs****
less living expenses*****
less repayments on existing loans******
less repayments on new loans*******

* some lenders don’t accept some forms of income…[Read more]

Good for the major 4 who had the lowest Deferred Est Fees in Australia and can afford to waive them (two of the 4 already had).

Many non bank lenders only have a half good rate because they either get 4-5 years interest revenue; or if repaid within that time revenue from DEF.

Keep in mind that many non banks insure all loans. Over 80% they…[Read more]

doggity wrote:
What are the banks rules on titles? Do they need the name on the title to be the same as who has the loan? What if the title has two names, one that is on the loan and one that isn't.  Does that reduce borrowing capacity (since the bank can only have security over one owners share)

You cannot mortgage half a property.

The l…[Read more]

To the best of my knowledge it is illegal to lend to someone who is bankrupt. Whilst bankrupt you will be allowed to earn up to something like 65k p/a and have a car to the value of x. You can not enter in to a credit contract – nor can a lender offer one to you.

It is believed that banks will not lend to someone who was once bankrupt. This is…[Read more]

They have no need to revalue unless you are borrowing more money. It will make no difference to the loan as it is already mortgage insured regardless of current value.

Even if they did get a new valuation for legal reasons they are not generally allowed to give them to customers. Therefore a pointless exercise.

Steve,

How much is your loan?
You are on Wealth or MAV Package with 0.5% discount?
You can increase the discount to 0.7% with no cost (7.11%).
Cheaper than ING.

Susannah,

When X Investments p/l goes to the bank it has two options.

Option one is to set up an account in the name of ‘X Investments P/L’
Option two is to set up an account in the name of ‘X Investments P/L’ as trustee for ‘The ABC Family Trust’

It is important to note ( as others have) a trust is not a legal entity. It is only a structure.…[Read more]

A large majority of small lenders pay mortgage insurance for all loans – even if only lending 10%. Banks usually only insure over 80%.

To remain compeititive smaller lenders only pass on the insurance cost over 80%. They absorb the cost for loans under 80%.

To date ASIC is indicating they will allow lenders to recover costs – but not charge…[Read more]

Brunswick is only 6 km north of Melbounre CBD (I have walked it a few times – not far). Access by tram and plenty of trendy cafes..

Only downside is it is not that cheap anymore. Id buy there. But be careful – there are a lot of shoebox apartments and studios turning up there. Try to get 2 bedrooms if it is within your price range.