Forum Replies Created
NAB will lend 95% to aust citizens as well.
One of the problems with this approach (i.e. expecting something in return for leads) is that any good broker probably has enough business as it is. They normally wouldn't be willing to pay for more business because they don't need to. However, a lesser broker might not be as busy and will be attracted to your offer. Therefore, my advice is to focus on the experience and service of the broker and then look for something in return IF the relationship turns out to be good.
Just my 2 cents.
I think you can speak to two or more brokers but the only thing I think is reasonable to expect is that you are open with them. Tell them that you are seeking other opinions. Most brokers will appreciate your honesty and they can then decide if they want to spend the time helping you.
As a broker myself, that's all I would expect.
It might seem like an unpopular comment but what happened to borrowing withing your capacity? If you have declared your true income and no lender will approve the loan then perhaps you shouldn't be borrowing more. A no doc might be a solution but is it the right thing to do? I wouldn't think so.
Maybe a poor choice of words but I find it offencive to suggest I am wrong on this point. I take pride in my work! Some lenders will waive valuation cost but there are plenty that will not. Consider the example where you might have five properties. It will cost the lender more than $1,000 in out of pocket expenses to value these properties. Mange lenders will not waive a fee of this size – at least not all of it. Therefore, it is a valid and correct point to make and something borrowers should consider when structuring loan and choosing lenders.
Can I shamelessly plug one of my articles in API on this very topic???
Hi Linar
Its been a while since I have answered a question here…
There are a few lenders that will do this. I know that NAB will consider it. St George will probably do it as well. There are a few. However, you have to have the knowledge to consider the lenders products, policies, etc.
Why don’t you contact a broker? It will save you a lot of time and ensure you get a good solution.
Cheers
Stu
Hi Anson
Terry is a great broker! I would highly recomend him. He is also an experienced investor.
Cheers
Stu
NAB will do internal inspections for loans that require mortgage insurance (as do many other lenders). Therefore, just tell the bank that you want to borrow 90%. When the full valuation comes back, adjust the loan amount down to 80% to avoid mortgage insurance. You could also provide the bank with a listing of what renovations were undertake and how much they cost. If you did the work yourself, then list the cost it would have been if you paid someone else to do the work. Include receipts/quotes if necessary. That might help getting a higher valuation.
Cheers
Stu
WHY WOULD YOU ADMIT TO COMMITTING TAX FRUAD (AND SUBSEQUENTLY SUGGEST YOUR FAMILY’S BUSINESS IS ALSO COMMITTING FRUAD) IN A PUBLIC ENVIRONMENT??? (I am referring to you getting paid cash-in-hand). I am not naive to think that it doesn’t happen but you certainly wouldn’t public advertise the fact. Honest people end up paying more tax because of people that avoid it (illegally!). So why should we help you???
Cheers
Stu
No calculators that I know of.
I did a quick spreadsheet and if you repay $200 extra every month for the 1st 5 years only then you’ll repay the loan in 25.7 years (308 months). That is, you will repay 4.3 years early and save $58,142. Go for it!
Cheers
Stu
You might want to check out NAB. They will normally do up to 6 dwellings/units on one title @ 80% @ residential rates. They like it of all are currently tenanted.
Cheers
Stu
the whole experience really opened my eyes to how uneducated, naive and gullible the mortage broking community actually is.As a mortgage broker, I take offence to this Nat. I too openly disbelieved what they had to offer but that doesn’t necessarily make me smarter than the next guy. Generalisations don’t do anyone any favours.
Cheers
Stu
I am probably to blame for the MF terminology. I used it in my article: http://www.prosolution.com.au/articles/structure.pdf
How does one borrow the deposit fro the MF from the bank to use as cashdown?
You establish a new loan against a security (property).
What do you tell the bank you need the money for?
Future investing to purchase more property.
Do I borrow 20%deposit money from MF& then borrow the other 80% from another bank?
You can use another lender if you like. In my opinion it depends on who’s going to give you the best deal.
Eg. We own a home 250K with no money owing. How much can that MF give us to use as a deposit?
80% of $250k = $200k. This will give you enough money to purchase $800k of property. Use the MF for 20% plus costs and get a new separate loan for the remaining 80%.
And what do you tell bank what needed for?
Once again, future investment purposes.
And is it the same when I borrow against it again?
No, just establish one loan for $200k.
What is the %age you should borrow against the MF?
80% or whatever you need.I have a deal that is more money than I can raise on my own. How can I get more money?
Rob a bank (althought this is a short term solution). Partner with someone else. Look for a smaller deal.
If a property is positive geared & fully tenanted, shouldn’t a broker lend the money in full on the fact that it already runs on a profit? (I think is is 80%)
No, Most lenders only take 80% of rental income and look at loan repayments on a P&I basis at a higher benchmark rate.Cheers
Stu
Sounds strange to me also… Maybe the loan was approved by a branch manager under their own delegation of authority. I am sure that standard policy is to use a panel valuer but maybe this guy just cut corners. I doubt banks will start accepting valuations form real estate agents. Who knows?
Cheers
Stu
Yes, I am being told its a few weeks away.
Cheers
Stu
Thanks for the feedback. Glad they helped. I have written many more articles and newsletters…
See http://www.prosolution.com.au/free_articles/articles.php
Cheers
Stu
I have written a few articles on this topic. You can download them:
1. http://www.prosolution.com.au/articles/structure.pdf
2. http://www.prosolution.com.au/articles/structure2.pdf
3. http://www.prosolution.com.au/articles/structure3.pdfCheers
Stu
Many lenders have caps on personal loans One way around it is to apply for two personal loans for $35k each. A business loan’s an option but personal loans would probably cost the same but will be easier to get.
Cheers
Stu
I am pleased you enjoyed the article John. I have employed this strategy personal also. Makes sense to me if you are a long term investor.
Cheers
Stu
