Mark

I think from your post you are saying that you have demolished the existing dwelling and are wanting to construct a new property on the site and that the current land value isnt sufficient to cover the existing debt.

If i have it right then that will be the case with every lender but if i missed something then feel free to correct me.
 
Cheers

Yours in Finance

Hi Intrigue

In most cases both of the mortgage insurers require you to produce 3 months bnak statements showing your 5% genuine savings and this is in addition to any Grant or concession you may receive.

Very few lenders offer 95% + LMI so if the lender does not then you would required to show evidence that you have sufficient funds to cover this expense. The single one off premium will vary depending on the lender / mortgage insurer and also the purchase price / valuation.

As a guide where the loan amount is less than $300K you are looking at around 2.25% of the loan amount and over 300K it jumps to circa 2.75% of the loan amount.

Even if the lender does capitalise the LMI it is usually limited to 97% so you would need to come up with the extra amount anyway.

Lenders lend against purchase price / valuation whichever is the lower.

Hope this helps.

Cheers

Yours in Finance

Hi Peter

Yes i have 101 self employed clients and to be honest there is no difference to dealing with a client on a PAYG salary.

Course i am assuming that you have done your last 2 Years Tax Returns.

If not then things start to get a little more interesting.

Cheers

Yours in Finance

Hi Michael

I feel sorry for you but hate to say it is a story i hear every day of the week and one from which i seem to field calls and emails from forum members just as regularly.

As has been said you should be able to get your Broker to order a valuation upfront with comitting to a loan application so thats where i would be starting. At least that way you know if the valuation comes in and everything else is equal the loan will proceed.

Course it will depend on how far you have got with your current lender as if the mortgage insurer has already seen the deal they may refuse to accept another valuation.

As i say it will depend on a few factors but would say all is lost.

Cheers

Yours in Finance 

wiebke

Have to agree with Michael i am not sure why you would need a Solicitor / conveyancer to own a dozen or more IP's to act for you.
I would rather deal with someone who can convey the clauses you want on paper to the other side irrespective of whether he/ she has ever purchased one.

Slightly different when dealing with a Mortgage Broker or Banker. I for one wouldnt deal with a Bank / Broker where they were offering my adice on how to structure my investment loans yet didnt own an IP or 3 themselves.

Cheers

Yours in Finance

PJ

Must admit concerned that the Broker Metropole have got looking after you according to your words was a "bit inexperienced".

As i say so often to forum clients it is a concern when you own more IP's than your Bank or Broker or have more of an understanding of the process than they do.

I hear from so many clients who tell me their Broker is still paying off their PPOR yet out there telling clients what they should be doing to set up the investment structures. Bit like going to a dentist to perform oral surgery and getting someone who has read the theory yet never quite go as far as the operation. Wouldn't inspire me…….

Cheers

Yours in Finance

Hate to say this is incorrect:

The federal government recently overhauled discharge fees so I think if you are taking out a new mortgage, you are not liable for the discharge fees.

Most lenders still charge Settlement or discharge fees even post July 2011. The only thing that was repealled was deferred establishment or early repayment fees on variable rate loans.

Idea was to provide increased competition which i hate to say failed miserably and all that has happened is lenders have gone back to charging application fees upfront.

Cheers

Yours in Finance

Away from what the boys have said in regards to the number of enquiries i would go a step further and say that at a 95% lvr it is going to be a tough gig.

Irrespective of how many enquiries the fact that you have a P/L 2 C/cards and on joint income of $150K only have 5% gen savings isnt going to be many lenders / mortgage insurers cup of tea.

You are really going to want a lender that doesnt credit score straight off the bat otherwise i dont see much hope.

A few lenders manually assess every deal and that is the only other area where i can see any chance.

Cheers

Yours in Finance

If it is a matter of dipping your toe in the water i think i would be looking at Western suburbs of Sydney.

Certainly financed more than a few forum clients in the last few months who have purchased IP's in that part of the globe.

You wont find anything cheap in Brisbane 6-7 kms out of the CBD and certainly nothing that will be neutral or positively geared. Going to have to go out a lot further for that.

Cheers

Yours in Finance

Sundance as per Jamie's comment i cant see an issue in including all of your acqusition costs in the borrowing amount but from the thread of your post sounds like your lender / broker is suggesting that you borrow the full amount in 1 loan using two securities.

Definately a big no no unless you want to do dig yourself a deep hole in the future.

Cheers

Yours in Finance