I agree with all the comments above about seeing a broker…

I find HSBC is commonly the lender that has the highest borrowing capacity for property investors.

Cheers

Stu

They can be done and we have helped a client with this before (commercial loan). Max LVR is normally 60% to 65%. Net rental income needs to be at least 1.5 time interest only repayments. Commercial lenders probably wouldn’t consider it for loans less than $1m.

The main uses of these facilities are listed/unlisted property trusts.

Cheers

Stu

Why offer such a large discount when you don’t have to – no other lender is.

St George – 0.70% > $250k
Westpac – 0.70% > $250k
CBA – 0.70% > $750k
BankWest – 0.75% > $750k

So why offer 0.82% if no one else is. All you need to offer is 0.75% to beat everyone else.

Salubrious, is there something we’re missing?

Cheers

Stu

Isn’t this great??? See what competition the mortgage broking broking industry is creating?

I must admit… 0.82% interest rate discount for a LOC > $250k is the best deal I have seen. Does the discount exist for the life of the loan? Did the client have other borrowings with HomeSide?

Cheers

Stu

If an established lender was offering the product I would have more confidence (even if they missed launch dates, etc.). But here we have an unknown company and an unproven product. The two together equals problems to me. I certainly wouldn’t jump on board until one is proven.

My second point was more aimed at encouraging people to do more due…[Read more]

I didn’t lock the past topic but…

Sometimes it’s best not to respond Robert.

I can’t see any benefit in leaving this tread open.

Cheers

Stu

Yep, the journalist does seem to know what he’s writing about. There aren’t experts in the loan arena. That’s why I like it when industry people write the articles… different insight.

Cheers

Stu

Yep, they should be able to vary the original mortgage insurance contact as long as the loan isn’t too old. It’s probably an oversight.

Cheers

Stu

The use of the word “creative” makes me nervous.

Cheers

Stu

Many fixed rate loans don’t allow redraw. However, there are a few lenders that will allow redraw and a small amount that will give you an offset account with a fixed rate.

Cheers

Stu

You shouldn’t have a problem with this. If the lenders aren’t happy without an occ. certificate then they can do it as a construction loan. Otherwise a normal loan will do.

I would suggest BankWest Lite Invt Loan. Min loan = $60k. $500 app fee (refunded in 3rd year), rate is 6.65%, no break or ongoing fees.

Cheers

Stu

Means proportion of property’s value you need to borrow. E.g. $200,000 purchase price with a loan of $160,000 = 80% LVR (deposit is therefore $40,000 plus costs).

Cheers

Stu

That depends on many factors, including:

Loan amount
State the property is located in.
IO or P&I.
Loans required (# of accounts/splits).

Maybe provide us with more info or contact a broker.

Cheers

Stu

Yes they have discounted professional package rates. Problems with product are:
1. Everything is cross-securitised.
2. They charge valuation fees. I have a client that has 4 properties and just purchased a holiday home. It will cost him > $1,000 in fees to add one loan.

Other professional packages are better.

Cheers

Stu

80% LVR is probably ok but over 80% will probably be hard.

Cheers

Stu

The lender is concerned with how you will reduce your debt exposure (forget about logic here – they assess loans without any consideration about what happens in the real world). Therefore, you need to appease this concern. Present them with an “exit strategy”. For example, say to them that you purposely want to retain debt (for tax purposes) and…[Read more]

St George will do 100% & no genuine savings. Servicebility and employment have to be strong so maybe you’ll fall down there.

Cheers

Stu

I don’t think so but who knows.

In my opinion, the amount of money lenders allow people to borrow is high enough.

What needs to change is the standard mortgage insurance policies. For example, you can borrow 95% up to a max loan of $500k. This needs to be increased to $750k (or higher) in Melb & Syd. You can’t buy much in Melb & Syd for $500k in…[Read more]

http://www.establishmentloan.com.au/ may lend you 105% of a property’s value (price + costs).

There are also a number of lenders that will lend 100%.

Cheers

Stu

Thanks Tasman.

The reason that fortnightly repayments ends up saving borrowers is becuase you are essentially making 2 extra repayments per year.

I didn’t actually do the numbers myself. I did a Google search and relied upon St George’s numbers.

See http://moneymanager.smh.com.au/articles/2005/03/08/1110160815144.html

The only way to save…[Read more]