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I find it a little amusing the bank is asking me to payout a certain figure but will not tell me how they get to the figure – I'm supposed to trust their system and how they work it out. I think not!
Oh nothing suprises me.
Richard Taylor | Australia's leading private lender
As Terry mentioned as long as you are not in a Defacto relationship and all other areas of the FHOG qualifying criteria are met then why not consider 1 each it is a combined amount of $28K you will receive.
Richard Taylor | Australia's leading private lender
Hard one to answer as it boils down to what you can actually service.
On $48K each you would probably max out your borrowing capacity at around $275 – $300K each assuming no other liabilities so might want to think about buying 1 each both qualify for the $14K (assuming no Defacto relationship) and then after complying with the FHOG and Stamp Duty requirements move into 1 and rent the other one out.
Careful loan planning needs to take place to maximise your deductions down the track but all in all should work well.
Richard Taylor | Australia's leading private lender
The wholesale rate is a vague defination and could be absolutely any rate.
Check out the RBA website and you will the official cash rate which is what your lender could be referring to.
Alternatively it could be another yard stick.Without knowing exactly what rate they are referring to it is difficult to answer further.
Richard Taylor | Australia's leading private lender
Like a lot of lenders it is a 97% LVR as no-one capitalises the LMI these days over 100%.
It is 100% less LMI.
Do you really want a fixed rate loan at the moment. Wouldnt you be better off to wait and see what fixed rates do over the next 6 months before locking in.
A fixed rate has a lot of disadvantages in a fall interest rate economy.
Richard Taylor | Australia's leading private lender
No unfortunately no lender offers more than 100% these days (The old 110% loans have been withdrawn).
Nothing to stop you using part of the $14,000 FHOG to paydown some of your costs after covering your loan, LMI or similar and acqusition costs.
Richard Taylor | Australia's leading private lender
Ohhs posted twice
Richard Taylor | Australia's leading private lender
Firstly need to make sure that their Bank offer such a product (not all lenders do) and secondly Yes could be several things they have to change.
You parents may have a Line of credit or redraw facility or even have the loan cross collateralised with other securities and these may need to be cancelled or restructured. Their income may not be sufficient for them to be able to guarantee the additional loan amount.
I prefer a structure where your parents lend you 20% deposit and you then use as deposit and avoid LMI that way they can carry on with their borrowings and are not answerable to your lender.
Richard Taylor | Australia's leading private lender
Firstmac still have their Trans Tasmin loan and as Terry mentioned Pioneer are ok with this.
There are a couple more so you could use a mix of equity a new borrowing to get you there.
Thats what we usually do for our clients wanting to buy across the ditch.
Richard Taylor | Australia's leading private lender
One of the downsides of the FG style loan is that the your parents propery cannot be used for for further borrowing during the guarantee period unless they use your lender and if they have an original loan against the property they need to refinance.
If you take an interest only loan then you are relying solely on the capital growth to enable the guarantee to be released.
There are a couple of options and you would be better off to seek the advice of an independent mortgage broker who can look at the whole scenario for you.
Richard Taylor | Australia's leading private lender
Yes in Qld you will be exempt from Stamp Duty on your purchase and thnakfully eventually they did away with the dreaded Mortgage Stamp Duty in the Sunshine State.
Depending on where you are buying i can certainly recommend a very good Solicitor who does nothing else but house purchase and has acted for dozens of my forum clients.
Often rather than speak to a dozen lenders direct you are better off with an independent mortgage broker who can tell you the pluses and minuses of each and every lender. Their services are free as they are remunerated by the lender.
Shoot us a note if you want some ideas.
Richard Taylor | Australia's leading private lender
Personally i wouldnt go for the Advantage package as other than SGB probably have higher fees than the other majors for most things it is a Condition of the package that all loans are cross collateralised.
Whilst that may not sound a issue when you start out if you ever buy an investment home problems really start to mount up if you are not careful.
Think you could better.
Richard Taylor | Australia's leading private lender
Yes SGB is one of the few lenders offering 100% loans but as Terry mentioned they are not the easiest to get a loan approved through even with all of the documentation.
Certainly my experience with them in Qld (And i was their credit manager here in Brisbane when i first arrived 15 years ago) is that they will want copies of everything you can think of and will pour through your credit card statements looking at habits of expenditure etc etc.
Also remember whilst it is a 100% loan they still deduction their Loan extension fee from the Gross amount so you end up with 97.5% of the purchase price anyway. Rate of interest is also a little higher than normnal to compensate.
Richard Taylor | Australia's leading private lender
Hi Mick
Nice in theory but in todays climate a lender will only lend against purchase price or valuation whichever is the lower.
Realistically you would have to wait 6 months before having a revalaution done on the property by the Banks valuer.
Richard Taylor | Australia's leading private lender
Ness 1974
Here are links to a couple of QS firms we refer our clients to in SE Qld which may help
Depreciator – http://www.depreciator.com.au/driver.asp?page=main/home
When dealing with a Mortgage Broker i think one thing you want is to deal with someone who has the same ideals as yourself when it comes to property. Many Brokers have no experience in dealing with investors and are slightly out of their depth in discussing various strategies.Choice are a merely a franchised operation where the advice you get is as good as the individual who purchased the franchise.
I guess in saying that i am somewhat biased.Richard Taylor | Australia's leading private lender
This of course would only change if the business was freehold or a franchise where the Bank may lende against the individual business security.
Otherwise they will require property assets or similar as security.
Richard Taylor | Australia's leading private lender
I disagree Banks and lenders do ask on most applications whether you have any other liabilities such as Taxation or Contigent liabilities and if answered YES this will be considered in assessing the credit risk.
Richard Taylor | Australia's leading private lender
If you worked on say 6.25% (probably be a little less but a good start).
$225,000 x 6.25% / 12 = $1172 / month.
Richard Taylor | Australia's leading private lender
Wouldnt use a DFT as NB are not available.
May consider a Unit Trust.
Richard Taylor | Australia's leading private lender
Yes full doc loans are still available with the income of the Trustees and or Directors being considered.
Richard Taylor | Australia's leading private lender
