Hi Motivated

Sorry to hear the hassles you are having.

To be perfectly honest it doesnt sound to me like your Mortgage Broker has done you any favours for a couple of reasons:

1) You say you could have gone either Full Doc or Lodoc. Your MB should have explained to you that a lodoc loan over 60% lvr normally attracts LMI which is not the case with a full doc loan.
2) I am unsure as to which lender you MB has placed the deal with but i am assuming that they will still do lodoc construction as many lenders wont.
3) Your MB should have argued the case and have got it through.

Whilst it is difficult to comment fully without seeing all of the figures with the right lender i think the time frame is still achiveable and would despite the what your Broker suggested go full doc as long your income can support both the land and ongoing construction costs.

Hi Jsoohoo

Having the loan mortgage insured will not have any bearing on your serviceability.

Loans in the main are credit scored these days together with a numerical formula whether it be DSR or UMI so i would rather buy now and incur some LMI or similar rather than wait until you had a bigger deposit saved and then find you miss out on the price increase.

Certain lenders have an alternative to LMI if the rest of the deal is strong so this maybe an option.

Hi Keiko

Hate to say dont have any clients who are looking at disposing a Company but your Accountant may have some.

Just need to ensure that Company is clean skin and carries no baggage.

Exactly right SNM how flexible does he / she needs to be.

Feel free to email me for my 10 reasons why you would not cross collateralise your loans.

To be honest i cant think of one reason why you would do so. Of course your Bank will tell you how much simplier it is and you have 1 loan ect but they would do of course as they have added security.

Yes why would you not establish a LOC or interest only loan on one or both of the existing IP's and use these funds as deposit for IP 3.

The security offered has no bearing on the deductability as the underlying test to qualify  is the"purpose" of these funds.

Then either using a separate lender take out a standalone investment loan against IP 3.

Subject to the assessed values you should be able to gear to 100% plus costs and still retain your 100K in your offset account.

Your mortgage broker should be able to show you differing scenarious.

There is only 1 lender that doesnt at the moment require a PG.

Would need more details to let you know whether it would fit their criteria.

Dale

Interest on your PPOR will be non tax deductible so if you are happy with the home you are currently renting then probably better off to consider expanding your IP portfolio rather than buy a PPOR which wouldnt serve your current purposes. 

Depending on the purchase price you are considering with $60-80K you could probably afford a couple of IP's as well as retain some of the funds to go towards your PPOR deposit down the track.

Brett hate to say doesnt matter who you employ no standard lender will openly lend against such a security where the intent is to sell the property under an instalment contract or similar.

Mattnz you are bang on it is the attitude of all lenders.

Having been involved in wrapping, LTO's, 2nd Mortgage Carry backs etc etc since 1996 i have seen a few deals. 

There is no right tool if the Banks wont lend to the investor or you in the first place.

I agree GOM 4 posts 4 adverts.

I wonder whether we have anyone here who has ever even done a wrap or LTO.

Even if the property is owned and is held as security lenders will not take 100% of the rent and this will vary from lender to lender but the norm is between 65-80% of the Gross rent.