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It is actually worse than that with some Westpac fixed loans going up by 110bps for investors especially in the SMSF space.
We are getting hammered in demand on our Nodoc SMSF product as more and more investors find they can’t invest in Super when they want to.
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Richard Taylor | Australia's leading private lender
Anz have also just announced an interest rate increase on all of their interest only loans whether the property be investment or owner occupied.
Looks like P & I is definitely getting cheaper by the day.
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Richard Taylor | Australia's leading private lender
Yes Charles
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Richard Taylor | Australia's leading private lender
VF a lot easier to get over the line than having multiple tenancies.
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Richard Taylor | Australia's leading private lender
Jaxon are you referring to a VF style deal ?
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Richard Taylor | Australia's leading private lender
PT18 Why would you use your own cash from the offset to keep the lvr under 80%.
You would be better off to reduce the principal balance on the PPOR by the equivalent cash amount and then increase the equity sub loan by the same amount.
That way the interest becomes Tax deductible whereas had you used your own cash to keep the lvr down the Tax deductibility would have been lost.
Now as to whether you have the new standalone loan at 80% or 90% is upto you and dependent on your future investing strategies. If you are content to keep your portfolio at a single IP then keep it at 80%.
If you are wanting to grow the portfolio over time then whilst you still can go to 90% and incur some Tax deductible LMI.
Who knows in the next round of APRA guidelines recommendations the maximum lvr across the board could be 80% with all lenders and then you may well kick yourself.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Tom
Emailed you yesterday so have a read.
Not an issue in getting the deal done with another lender it is just the rate of interest etc.
Problem being is that both your current home loan and equity loan would end up being charged at a higher rate of interest than you are currently paying.If it was just the new investment property loan then fairly easy but issue is we need to come up with the deposit and acquisition costs from somewhere.
Hope this helps.
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Richard Taylor | Australia's leading private lender
Even if, for example, your wife’s super would have bought the house that is under your name (and none of you would live there, pure investment)
Still wouldn’t be able to do so as she is a related party.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Course the NAB was the first major lenderto increase their interest rates yesterday.
Ask them if they will waive your increase.
Do situations like this arise often? Seems to be a funny way to run a business.
Absolutely, your broker has done all of the work and would expect to get paid.
Can’t think of another Profession where you waive your fees if you decide not to proceed. Try that with your Accountant and see what he says.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Applying that current logic then blackhotel you are suggesting the variable rate over the next 3 years is going to fall ?
I have to disagree with you. We saw yesterday lenders increasing variable rates by 25 bps out of cycle from the RBA and this is the start of things prior to Basel 4.
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Richard Taylor | Australia's leading private lender
Other consideration is check your Credit Proposal Disclosure as you may still be up for the brokers commission even though you didn’t settle.
More and more brokers are factoring a fee payment in post formal approval in the event you decided not to proceed and the loan did not settle or you repaid the loan in the first 18 months and they incur a clawback of the commissions paid.
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Richard Taylor | Australia's leading private lender
If shoot me an email i can send you a copy of my API article on how i built a $25M unencumbered portfolio over a decade using a variety of cash flow strategies from development to Vendor Finance to Private lending in order to pay down my lending and be able to initially retire from the workforce at 40.
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Richard Taylor | Australia's leading private lender
The link relates to Canadian Mortgages so some of the wording might not be accurate here in Australia.
With lenders hiking their investment variable rates you may well find that a fixed rate is more attractive going forward.
Whether it is right for you will depend on a number of factors including your risk profile etc.
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Richard Taylor | Australia's leading private lender
Will depend on the lender and what their policy is.
Given their age they may still ask for evidence of income in order to show they can support the ongoing loan.
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Richard Taylor | Australia's leading private lender
Tom, there are additional refinance options we can offer you the difference in these the rate of interest will be higher than you are currently paying.
Reason we went with Qudos Bank was a combination of servicing and interest rate.
I am back from overseas early next week so will come back to you with the lenders who will do your deal and the relevant interest rates etc.
Unfortunately without income evidence for your wife sufficient to cover her living allowance all lenders are going to assess you as a married couple and take the joint living expense as a liability.
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Yours in Finance
Richard Taylor | Australia's leading private lender
If you can’t come up with a 12% deposit then cop the LMI and move on.
Tax deductible over 5 Years or the Term of the loan which is the lesser so you end up getting a portion back.
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Richard Taylor | Australia's leading private lender
Because they are ADI’s that fall under APRA wing.
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Richard Taylor | Australia's leading private lender
Yes both lenders you mention at present do not adhere to the APRA servicing guidelines.
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Richard Taylor | Australia's leading private lender
San you won’t find a property that will be positively geared in Brisbane with a 100% loan.
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Richard Taylor | Australia's leading private lender
Robbie yes received your email although as mentioned i am currently in Iceland with limited internet access.
All lenders take a percentage of rental income (usually 80%) due to the fact you have expenses such as Council rates, insurance, strata levies etc deducted before the net income.
In many cases lenders also cap the rental yield at circa 6-6.5% so if you have a property which you are getting 9% out of then only 6% yield will be considered.
Most lenders also sensitize your existing debts in accordance with the APRA guidelines so if you have a loan at 4.5% interest only then loan is considered a liability at 7-7.5% on a principal & interest basis.
In saying all of this it would make no difference whether you had PAYG income or not the formula calculation is still the same.
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Yours in Finance
Richard Taylor | Australia's leading private lender
