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Must admit i dont know a lender that operates this way
the bank will consider your $35,000 deposit less the full limit of your cards borrowing capacity which in the example I gave above would leave you with a deposit of just $25,000 to a banks thinking.
Most lenders will take a percentage of your credit card limit (Usually 3%) and this will be considered a monthly liability. In saying this wehre you can produce evidence over a 3 month period that the card is paid off each month then the liability is considered as Nil.
Use of a CC is not a bad idea at all to avoid LMI.
Richard Taylor | Australia's leading private lender
I find that hard to believe.
Not all brokers are wet behind the ears.
Richard Taylor | Australia's leading private lender
That will give you a guide however as i mentioned earlier each lender charges a different rate dependant on who they use to cover the loans. Both the LMI companies offer different rates to the lenders dependant on volumes.
Yes for a 90% LVR you are looking at around 1% of the loan amount. This would increase over $300K of course and again over $500K.
Richard Taylor | Australia's leading private lender
Jim
Firstly must say i have never heard of Red Rock Mortgage although i am sure they have never heard of me either.
Just be careful when companies tell you they will do Nodoc deals anywhere as in most cases they need to be mortgage insured and the Mortgage Insurers will not do deals outside certain post codes or where the property is not zoned residential / resi rural or in some cases rural. Specific zoning is very unlikely for a MI.
If you can go Lodoc and only require 60% or less then this is a different story but just be careful and do believe all that you read.
Richard Taylor | Australia's leading private lender
Chris
Each lender and both of the main mortgage insurers has a different scale however use check out http://www.pmigroup..com.au
as this will give you a guide.Richard Taylor | Australia's leading private lender
Hi Paula
If you are looking for a great property Accountant on the CG feel free to contact my Accountant and good personal friend who is a partner at the Gold Business Group – Southport.
His name is Steve Hodgkinson and he can be contacted on 5532 2855
Tell him i referred you as most good Accountants are not taking on new clients.
Richard Taylor | Australia's leading private lender
Chris
LMI is based on a combination of 3 things:
1) Loan amount on a scaled basis 0-$300K / $300 – $500K and $500K and over.
2) Whether the loan in interest only or prinicpal & interest.
3) The LVR.The post code of the property is also a major influence on whether cover can be provided or not.
The premium is based on the advanced amount as a percentage of the purchase price / valuation whichever is the lower and there is no allowance for funds held in an offset account.
Richard Taylor | Australia's leading private lender
I agree with Simon but remember if you buy renovate and then onsell your broker will have all of his commission clawed back normally if this happens within the first 12 months.
Might want to be honest with him upfront as Brokers earn their living from arranging finance and you wont get the same level of service if he / she thinks they are having to work for nothing.
Richard Taylor | Australia's leading private lender
Must admit i am not aware of any but this day with the electronic age location is certainly not as important as it used to be.
I have clients all over the world let alone Australia and very few of them i have actually met up with.
Sure it is nice to sit down with someone over a cup of coffee now and again but sometimes life is too busy for that and the client just wants the deal structured properly and financed.Richard Taylor | Australia's leading private lender
hugob
Got to be honest wouldnt be my attitude at all. I would checking out the small print before you get to Letter of offer stage as most securitised lenders charge application fees and certainly valuation fees.
Why would you put yourself through that only to read something you could have found out at the start of the process.
Richard Taylor | Australia's leading private lender
Hi Nattacia
I think time is against you on this one but certainly I would not be crossing the securities.
Why not just settle and then immediately look to restructure elsewhere. The other thing is the market valuation and Bank value are miles apart. You are not currently with the NAB or CBA are you ? If so that is why.
Would need a little more information to provide accurate advice but most things are doable.
Richard Taylor | Australia's leading private lender
As Simon mentioned due a few checks before you jump in.
The interest rate is not everything especially when you are talking about a mortgage insured loan.
Do you have to go Nodoc – are you sure ?Remember to make sure you tell about the 2 units on one title as the mortgage insurers are very funny about that at the moment.
If in doubt get a second opinion. If insured do you may the LMI or does the lender etc etc etc.
Richard Taylor | Australia's leading private lender
Barney
Hate to disagree. Built our portfolio on Installment contracts and they give you a darn sight more than $50 / week.
Richard Taylor | Australia's leading private lender
Xenia
You will loose 0.25% of the purchase price.
Richard Taylor | Australia's leading private lender
The lender is RAMS and is available to every broker under the sun.
Just check the LMI as it isnt cheap.
Richard Taylor | Australia's leading private lender
The lender is RAMS and is available to every broker under the sun.
Just check the LMI as it isnt cheap.
Richard Taylor | Australia's leading private lender
InvestHut
Yes interesting logic isnt it. One of the disadvantages of using a securitised lender with LMI to consider.
Richard Taylor | Australia's leading private lender
Hi Invest
At an 80% LVR even if you are on probation we wouldnt have a problem with a major lender.
Only problem with those lenders who mortgage insure every loan irrespective of the LVR is that the the mortgage insurer will not take the loan whilst you are on probation.
Richard Taylor | Australia's leading private lender
Firstly welcome to the forum.
With a reasonable cash deposit you have the opportunity of being able to purchase a property or two and enjoy the rental yields they bring with them especially with minimal or no gearing.
Your marginal tax rate will determine whether you can claim much in the way of negative geared benefits especially non cash deductions and this in turn may determine the structure you use to purchase the properties in.
Even with a decent deposit if you long term aim is to build your property portfolio you will need to consider some form of gearing. With limited evidence of assessable income you may wish to consider the use of a Nodoc style loan.
Bear in mind this type of loan is a mortgage insured loan and the properties will need to be in acceptable post codes.
Feel free to bounce the description of such security of us and we can advise you whether it would be acceptable for Nodoc lending.
Richard Taylor | Australia's leading private lender
Hi Yew
Anz / Bank West and a few others offer a Lodoc 60 but the borrower is still required to declare an income.
Not sure this would be suitable given the request for a Nodoc style loan with no income declaration whatsoever.
Nodoc 80% is available or Nodoc 85% on a blended rate.
Richard Taylor | Australia's leading private lender
