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There would be a couple depending on who the existing loan is with and whether their is any cash out.
Assume no other liabilities such as rent and that a declared income of $75K income would service the loan.
Richard Taylor | Australia's leading private lender
Craig
Hate to say no the days of 100% have been and gone.
CBA policy is that if the client has a good asset base and excellent repayment history they will look at a 95% LVR however in talking to them this is likely to be more by exception than the rule as it requires approval from higher powers.
Richard Taylor | Australia's leading private lender
Regretfully not,
They want to see your deposit as savings over and above any other expenses.
Obviously if you are paying rent you will not be able to use these funds as deposit as they will have been (ignoring rent to buy schemes) paid out to the landlord.With FHB having to front up with 10% deposit these days with the majority of lenders it is going to get tough out there to get your foot on the property ladder.
Richard Taylor | Australia's leading private lender
Your Accountant would be one place to start.
Richard Taylor | Australia's leading private lender
Yes normally this would be the case however there are still one or two lenders offering a fixed rate on a line of credit.
You wont be able to extend the fixed rate loan once you revalue so would have to take out a totally separate loan for equity purposes.
Richard Taylor | Australia's leading private lender
Just to clarify GST registration has nothing to do with the amount you earn but is required if your turnover is over $75K PA.
Ues there are a few lenders who do lodoc refinance but it all boils down to LVR, loan amount and a number of other questions.
Richard Taylor | Australia's leading private lender
Hi David
Maybe not removed but certainly varied considerably to imply more risk to the guarantor.
Remember whilst your parents property maybe unencumbered today do they want to not be able to do anything for the next XYZ number of years whilst your debt is still secured against it.
As you can see i am not an advocate.
Richard Taylor | Australia's leading private lender
I think you are asking can you claim the interest on a redraw from your existing home loan to which the answer is NO.
It is a lot cleaner and simpler to set up a totally new loan specifically for the purposes of investment so the interest can be easily identifyable.
If you still have a non deductible home loan there is nothing to stop you being creative with the offset account to reduce the interest being charged on the ND debt.
Richard Taylor | Australia's leading private lender
Personally i dont like the FP style loan and never recommend them to clients as their is too much of an issue for the parents providing the Guarantee.
Until the LVR is down to 80% your parents will not be able to move (with exception) refinance or borrow additional funds themselves. If they have a loan on their property they will have to refinance this to the Dragon.
They would be better off borrowing sufficient in their own right to lend you the 20% deposit plus enough to repay your personal loan and you set this loan up on a P & I basis. You then take out an IO loan with 100% offset on your property and go hammer and tong to pay them back as quickly as possible.
This way they can keep any loan they have with their lender and you can reduce the loan as you go. Even apply the FHOG straight into their loan to make an indent on the principal from day 1.
Have to be careful to step through the genuine savings requirements but all in a lot cleaner and easier for all parties concerned.
Richard Taylor | Australia's leading private lender
You could always look at borrowing a little bit more and prepaying interest in advance for the year as well whilst it is still an investment property.
Richard Taylor | Australia's leading private lender
Considering HSBC have pulled out of the residential lender market bar the shouting and sold their loan book to First Mac i think it a matter of grasping at straws for business at any costs.
Crunching the numbers and being aware of their old lending criteria i would have been suprised they would have qualified you for such a loan amount.
Richard Taylor | Australia's leading private lender
99% of times we only ever use our own funds to purchase as most Vendors and your financier will say NO.
Richard Taylor | Australia's leading private lender
Regretfully no you dont have much choice as the Dragon has it is own panel of valuers and in Toowoomba this will be limited.
I guess the valuation is only an issue if you need to access the equity and if not well is probably not an issue for the time being.
Remember there is a big difference between an open market valuation and a valuation for Bank purposes.
Richard Taylor | Australia's leading private lender
Dan
Yes it is a lot to borrow and I would want to be putting a client in a loan of that size or multiple of income.
Like anything in this world most things can be done it is just the cost of doing it.Richard Taylor | Australia's leading private lender
All in hands thanks.
Richard Taylor | Australia's leading private lender
Sorry i disagree i think there are a few other lenders who would look at the deal with the right information.
Richard Taylor | Australia's leading private lender
You need to look at the Tax defination of a substantially renovated property.
We do a fair amount of strata titled blocks in Qld (buy renovate and sell) and obtained a PBR from the ATO.
If you are going to spend $35,000 per unit including development costs you may well find the ATO consider the work "Substantial" and then GST will be charged on your sale price.
Richard Taylor | Australia's leading private lender
Jo
What is the property zoning and where is it located in WA.
The use, size and 101 other issues will scare most lenders off especially in the current climate but not necessarilty ut of the question.
Richard Taylor | Australia's leading private lender
JA
Yes you are right neither Nodoc and lodoc loans will not be available to you in this case due to a variety of reasons
Property location, questionable whether it is even mortgageable, lack of evidence of income, not self employed, small loan amount, sorry but the list goes on and on.
You could look at a secured personal loan but again lack of income will prevent this one getting off the ground.
Bottom line is the reason why you can finance the deal is that you show you can ever make the repayments.
If you had any income at all then finance would not be an issue.
Richard Taylor | Australia's leading private lender
Yes no wonder i go greyer by the day in this industry.
What next.
Richard Taylor | Australia's leading private lender
