The Comparison Rate is 5.51% and not 5.25% and there is a $15 / month charge for the offset account.

The product is fine if you can put up with the Banks level of service and tight credit policies.

Couple of other products out there that are similar.

Not quiet correct

You will have to hold that IP for more than 12 m to get discounted CGT ( 50%) if claim the house as investment property,

The date is actually based on the original contract date so you can actually live in the property for a month if the Contract date was dated 11 months and 1 day prior. CGT is based on Contract dates and not settlement dates.

Hi Damon

Not in Sydney but maybe able to answer your question.

Problem is that there isnt too many insurers to chose from so often you will get the same answer from a vairity of different lenders.

Can you tell me a bit more about property you are looking at. If it is a studio will it have a separate laundry ?
What sort of size is it. Appreciate it is less than 50 sq m but the actual internal size if very important.

Yes there are a couple but unfortunately they will not lend to UT or HDT's even on full doc.

More and more lenders are shying away from such structures so tread carefully.

Have had many people appraoch me over the last 12 months wanting to refinance out of their current lender but because of the nature of the entity under which the property was held this was not possible.

One of the downsides with SGB and their Advantage Professional Package is it is a condition of the letter of offer that the loans be cross collateralised.

Secondly the Bank charge for everything so be wary.

I believe you could do better. 

KY is right and in Qld i would have suggested a License to Occupy style contract.

You dont qualify for the FHOG so that isnt going to be an issue but if you qualify for rent assistance the Vendor / Investor may have more confidence in taking the deal on as he can assign the rent directly to himself and you pick up the balance.

Shared Equity is another style of purchasing in conjuction with a Vendor who wants to retain ownership of say 50% of the property or even a balloon style lease repayment at the end to pick up some capital growth.

A small default may not preclude your loan from being considered by other lenders depending on numorous factors.

If you have a copy of your Veda file and this is all it shows with a satifactory explanation then i would still think several lenders would consider a new deal.

Hi Jezza

Sorry to appear to burst your bubble but obtaining development style funding is not that easy in todays climate especially if you have not done a project before.

Lenders will want to see a good deposit, income to support the loan along the way and even the odd presale or 2 wouldnt go a miss. Secondly your standard conventional Bank lender will not normally allow more than 2 dwellings on the same title so a 3 it normally becomes the domain of the specialist lender.

These loans cannot be mortgage insured hence the maximum lvr at 80% and you will need to fund the hard costs along the way which dont form part of the construction.

I do a lot of these sorts of deals for both myself as well as investor clients and they are a lot harder to obtain these days than they were
6- 12 months ago.

Hi Adam

Firstly dont always agree that a smaller organisation will have a cheaper rate of interest than one of the larger Banks.

What may appear nice and low on the surface doesnt always look that way underneath.

One of the big advantages of an offset account is that your everyday funds are offset the interest on your non deductable home loan so reducing the amount of interest you are being charged.

One of the non Bank lenders has a 1 year fixed rate at 2.99% which initially looks attractive but a home loan is for than 12 months and therefore unless you can repay considerable chungs of principal off the debt in the first 12 months you are still going to be left with the majority of the loan a year later. The rate then increases and the whole product becomes unattractive in comparison.

From a separate angle i assume that the Vendor was concerned for his CGT when he wanted a settlement in the Financial year 2009. Might be worth pointing out to the agent that the Contract date is the trigger for CGT and not the settlement date so if you settle in July he can still offset the gain / loss in 08/09.

Other than that i think you would be lucky for Homestar to have the loan approved by 26th July let alone June.