Mac bank during the GFC- shut it’s doors and business literally – increase the rates + no new leading and was really hard to exit and refinance out of them. If this happened with any of the more well known brands or the big 4 it would be all over the news and a big out cry + the company would go out of business for sure….but smaller banks can get away with it- as they only have a small handful of clients on their books, and they can jsut literally just start all over again by offering a super low rate.

P.s Mac bank has re-enter the leading market again as of March 2010, a lot of us brokers tend not to recommend Mac bank because of their history…i have only ever submitted a loan with Macq bank if the client ask for them directly ( after our warning) OR their niche product/feature suit the clients unique situation and it’s never rate driven….more policy driven.

If they done it once, and got away with it… they won’t hesitate to do it again when times are tough or they need to achieve a higher profit margin.

I can tell you 6.22% is a “cheap” rate, not the cheapest ( http://www.shapehomeloans.com.au/interest-rates) – but not necessarily the right product/lender to go with depending on what you want and after + your long term goals and most likely if your willing to take the risk and gamble…some are.

P.s I wont comment on SCMC as i haven’t used them before..

Regards
Michael

Coal Seam Gas is sort of like the 2nd grade stuff of Coal mining….shorter period and life + less profit and demand ( even though it’s in the media quite a bit)

Regards
Michael

Richard has covered it perfectly.

I would say ; given it’s a 95% Loan with Cap LVR- LMI cost is a very important factor to consider- more important then the rate itself…

ANZ if done via their own LMI ( ANZ LMI) tends to be slightly more expensive in terms of the LMI cost – at least 15%-20% more on average

So for example; presuming a $400,000 purchase in postcode 2119 as PPOR and P/I.
BWS( FHO) – $10,300
ANZ LMI – $12,000 ( will varies depends on location and PPOR or not etc…)

a $2,000 difference/savings…comparing this to the rate with a difference of 0.05% x $380,000 = 190 per year

But really for high LVR loans it comes down to
1. Which lender/LMI would approve the loan …especially at 95% + CAP LMI– as Richard mentioned ANZ will only do this for existing credit limits.
1. If this is a PPOR or IP purchase
2. How good is your sisters overall file ( as getting approval for 95% + LMi is not easy) – so at times a self insured ANZ policy could help.

Regards
Michael

Correct to a point; presuming—>

1. the renovation adds the value you expect Compared to the market
2. Valuer agrees with the value
3. LMI allows for the extra increase + agrees with new valuation as well ( presuming you go with a lender that doesn’t have DUI)
4. You can service the increase
5. The product you choose allows for a split structure or equality release

Also note; it’s up to the bank if they would allow a 2nd valuation or not…and if they do allow the 2nd valuation /release then normally you need to wait 3-6 month as a min.

So i would highly suggest you speak to a broker- as they would be able to find you the right lender that suits your requirements + the above points + the right product to suit your overall long and short term goal.

Regards
Michael

Block of 4 under one title is still ok with Res lending- same discounted rate with the right lender.

If it’s in a good location and there are comparative sales then up to 80-85% LVR is do-able.

Regards
Michael

https://www.propertyinvesting.com/forums/getting-technical/finance/4337464?page=3

Regards
Michael

Also side note- Most of Nathan’s purchases are under his personal name.
Personal choice.

Terry has already listed the benefits of a trust…and no it does not mean you can borrow more…

Regards
Michael

Got nothing to do with trust or personal name.
You could easily hit this “wall”/problem under a personal name purchase.

As Terry and Richard mentioned, it all comes down to;

1. Structure
2. Debt level
3. Serviceability
4. Income
5. Exposure limit with the same bank/LMI

Regards
Michael

Resimac – low??!?? really…. how much are you borrowing? + what LVR??

Had mix response from previous Resimac clients; and fortunately more negative…

Positive- ” Nobody else would lend to me at that time, so im happy Resimac was able to…. at the given LVR”
Negative – ” Their rates changes ( upwards) over a short period of time… especially for us existing customers..”

Being a Non-bank ( Ie they do NOT hold the funds under their name); they pack their funds ( securities) into little mortgages, so really they have no control over how much it will cost them to package these funds as it changes on a regular basis based on how much they can securitise at any one time— hence why their rate movement are quite liquid.

So really i would only use a Non-bank ( note their is a BIG diff btw non-banks and “small” banks/ credit unions/ teir 2 lenders etc…) if and only if

1. Your situation is unique enough, that ANY traditional/small banks or credit union will not lend you the money at a “reasonable” rate.
2. There’s a particular feature that the non-bank offers that will help you with your future investment.

Remember; rate can and DOES change….a mortgage is a long term commitment- not something you will be changing on a regular baisis; so make sure the company your been recommended is stable, does what you need, full fills YOUR requirements and not a “short ” term solution.

Regards
Michael

None of the above post is about “refinancing” at all…it’s about the transfer of name itself…In fact 95% of this sort of change over the client stays with the current lender.

You pay stamp duty to the land and title office for this change over. The only reason the bank was mentioned; was to answer your “reason” for changing over.

Eventually you will need to change the mortgage – but that won’t came at any cost; if anything less then $600 ( admin cost, registration etc.)

Regards
Michael