Slodki

You could possibly get a 95% loan. Are you working full time or part time? You would need around 6 months in the same job (not casual and not on probation) and 3-5% genuine savings (of loan amount) to qualify.

Terryw
Discover Home Loans
North Sydney
[email protected]

It seems most banks/lenders have policies of not lending for wraps. But it seems some people have gotten around this by:
1) not telling the bank they are wrapping, or
2) going thru a local branch manager (who may or may not understand wraps and their own bank’s policies).

There are also some small lenders specialise in lending for ‘wraps’

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi

Generally lenders take 3% of the credit card limit as being a monthly expense whether you pay it off in full every month or not.

With a LOC, it is not really existing capital, but a loan each time you take money out-and you can borrow up tot the limit at will. So banks will take the full limit as the borrowings no matter what the balance is.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hopefully all of your -ve properties will become +ve over time as rents are constantly increasing due to inflation.

Terryw
Discover Home Loans
North Sydney
[email protected]

There are many low docs loans out there. Most (but not all) require you to be self employed for at least 2 years, this needs to be proven by the ABN number registration date. Some jsut require a letter from your accountant.

Generally they are only 80% LVR (so you need 20% deposit), But there is at least one that will go to 90%.

Rates start around 7% and go up tp about 11%. Macquarie have one of the best which is 7.30% initially but drops down to 6.5% over 3 years of perfect repayment history.

The only proof they require is a signed declaration of your income. No checks are made to substantiate this income. Some lenders do require proof of rental income but not business income.

Just remember if the income your declare is not high enough to pass serviceability, then the loan will be declined. ie you still must be able to service the loan on your income (declared).

The ATO has threatened to use this declared income as your taxable income, so bear this in mind!!!

Terryw
Discover Home Loans
North Sydney
[email protected]

I jsut use excel now. I used to use Quicken and money etc, but excel does the trick.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi

Yes, any profit (after all costs decuted) will be added to your taxable income and you will have to pay extra tax at the end of the year.

Terryw
Discover Home Loans
North Sydney
[email protected]

I just realised that this potential client of Greg’s is probably going to live in the house and the loan would therefore be covered by the UCCC. Under the UCCC, borrowers must demonstrate that they will have the ability to service the loan. So, I don’t know, the major lenders may be concerned with how he is going to keep repaying the loan if he is going to retire in a few years. If it was an investment property he would have rent coming in to cover it.

I have never seen it happen, but maybe they could argue this line.

But then again, retirement is not compulsory anymore!

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi Janette

Hmmm. I don’t think you can do that (legally) either. If you paid cash from your superfund, then the superfund would be the owner.

Or maybe your super fund would ‘loan’ you the money and you buy your home. If that were the case, then there may be problems with it not being at arms length. Superfunds cannot lend money to the trustees or their family. This maybe possible somehow – eg two friends swapping houses.

But I don’t know much about super, so am probably wrong!

Good luck

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi GGG

I beleive that if you purchase a property using a superfund, then you cannot access the equity – superfunds assets cannot be mortgaged.

Terryw
Discover Home Loans
North Sydney
[email protected]