Forum Replies Created
Why not hold off until you find the new PPOR you wish to live in then sell your existing house to your Trust and claim the interest on the full 100% off the Transfer as a tax deductible expense.
Use the funds raised as deposit on the new PPOR thus reducing your non tax deductible debt by the same amount.
Richard Taylor | Australia's leading private lender
Terry
Oh sorry to keep you in suspense. It is new US player that hopes to be in Oz within the next month.
Their name escapes me although I only read it yesterday but they make Gemworth and PMI look like small fry.
Richard Taylor | Australia's leading private lender
Just what we need another ad.
Richard Taylor | Australia's leading private lender
Welcome to the site and I hope you find the resources helpful.
If in doubt post a question in one of the forums and I am sure you will receive some constructive answers.
Happy investing along the way.
Richard Taylor | Australia's leading private lender
Hi E
In answer to your questions
1. I understand from previous posts that Lo & No Docs are often postcode limited. Is there an accessable list somewhere to show which postcodes are ok? I know this probably varies by lender, but it would seem to make sense to have access to this before looking too far into a particular property or even an area. A) Whilst Gemworth and PMI have their own websites remember some lenders use both companies and also there are 3 or 4 other companies who use the smaller LMI companies or who self insure and your MB is probably an easier reference point
2. I know that a lot of lenders don't like properties with very small m2. ie. usually need higher % deposit, etc. Are there any special rules for Lo or No Docs? A) Dependant on the actual LVR then most lodoc policies would be similar to full doc lending.
3. What would be a typical 'premium' for a Lo Doc or No Doc over the current standard variable rates? A) Again dependant on the actual LVR and whether it is Nodoc / Lodoc then is no reason why there would be any loading on the interest rate.
4. I gather that taking out a Lo Doc can make it hard to get a No Doc in the future. Is this the case?
4. I gather that taking out a Lo Doc can make it hard to get a No Doc in the future. Is this the case? A) It all depends on who you use and with whom they mortgage insure. A good MB should find away around for you.
5. What happens if you continue to make repayments (no problems meeting them), but you overestimate your income. Are there any potential problems with this? We run a business which is quite seasonal. How does this work? A) No problems with the lender as they will hope you will make your normal repayments. The ATO use cross matching to verify income in case where they believe it has been severally understated. Nodoc maybe the answer here.
Just remember each lender has its own serviceability rules and these can vary considerably. Whilst you may think you have reached your limit on a full doc basis with one lender you may find that with another your borrowing capacity is considerably higher.
Richard Taylor | Australia's leading private lender
Most of the Retail Banks are required to charge LMI where the loan is > 60% and the loan is done on a Lodoc basis without proof of income.
All securitised lenders mortgage insure every loan irrepsective of the LVR. Most absorb the premium into the interest rate and charge a higher rate however some still charge the LMI even if the LVR is 80% and below.
Westpac & Rams will look at 85% LVR but be careful with these products as there is always a catch.
A couple of others self insure and then do not charge LMI but charge a "FEE" instead which may work out cheaper especially in the higher LVR loans.
Richard Taylor | Australia's leading private lender
Hi there
If the percentage is less than amount then the Lender will often pay the mortgage insurance.
This is not actually the case. There are ocassions where the loan is > 60% when the lender will require the borrower to meet the premium.
When you consider that the mortgage insurer carried the eventual risk and not the lender it is not suprising that if they reject the application the lender will not want to provide funding.
Richard Taylor | Australia's leading private lender
Pete
George maybe all 3 but he is not a property manager.
Richard Taylor | Australia's leading private lender
Current interest rate is 8.20% and Yes the loans are post code restricted so as long as that is ok then no problems.
Certainly a bit more fussy over documentation but all in all very useful.
Richard Taylor | Australia's leading private lender
All depends on the size of the property you are looking to purchase, individual break up of incomes and the size of the loan on your rental property etc etc.
Richard Taylor | Australia's leading private lender
No rights to get the truth whatsoever.
The Vendor does however have the right to demand a copy of the Building & Pest Inspection report if they decided not to proceed on this basis and as this was obviously not forthcoming one can only assume that this was not the sole reason for the deal falling over.
Richard Taylor | Australia's leading private lender
Eric
The product is open to anyone Mortgage Broker who deals with Adelaide Bank.
As I mentioned the first deal in Australia was settled on Wednesday and was one of our clients from the forum here.
They have already been interviewed by Rismark and this by Today Tonight.Regretfully a couple of the post statements you have made about the product have been factually incorrect so i woul durge you to acquaint yoruself with the product details before posting information on the forum here.
Richard Taylor | Australia's leading private lender
Mark Scenario 2 is correct
House worth $330 000
80% is $264 000
minus loan $130 000
Amount available $134 000remember many lenders go past 80% on a Line of Credit.
Richard Taylor | Australia's leading private lender
8.2% variable
Richard Taylor | Australia's leading private lender
Sorry dont want to appear negative but i only ever use the BIG C where i have to. i.e client has existing fixed rate loan with CBA or similar.
Some broker groups use them because the volume commission overrides but i think you do so at your own and the clients peril.
Richard Taylor | Australia's leading private lender
To answer your questions:
1).Does the commercial purchase sound reasonable? Also does anyone know if a 85-90% LVR is possible for commercial? (doesn't matter if not, just the bigger the loan the better the tax deduction).
A) LVR that high is unlikely without secondary expensive financing. 85% LVR is possible as long as the property has a good tenant and it is located in a prime location.
2. Can you buy an investment property and later claim the FHOG if you have never lived in the IP?
A) Yes you can as long as you have never previously owned a PPOR.
3. If I purchase a IP in my name, and then purchase the family property in my wifes name, can she claim the FHOG for the family home? I understand that I cannot do this for the IP. (this is really for asset protection, especially as I'm self employed)
A) Yes but remember her serviceability maybe limited. See answer to 2) above.Why would you not purchase your IP's in Trust for Asset protection !
Richard Taylor | Australia's leading private lender
If she doesnt earn much how is she going to qualify for the loan ?
Richard Taylor | Australia's leading private lender
All properties we hold are held in a Pty Ltd Company ATF Trust structure.
The properties are normally mortgaged so in the event of litigation the party taking action would need to determine whether it was worth persuing given that the Bank would hold first mortgage. Secondly the wrappee has a caveatable interest in the property and that is registered.
In saying this it is like anything dont hold assets in your name where you can help it or where for a financing perspective you are forced to.
Richard Taylor | Australia's leading private lender
Terry,
I am aware of a couple however really are only interested if it is considered as a business and there is some element of volume.Richard Taylor | Australia's leading private lender
Regretfully no you would probably would cause yourself more problems.
Richard Taylor | Australia's leading private lender
