buddy fox wrote:

Hello guys

very broad question I know !!!
but am in the process of looking for another ip and I do not want to use my old broker

MY SITUATION
currently have 2 ips with cba one of them borrowed 106%
both CF+ full doc loans.

i currently have 20k in savings and i am looking to borrow as much as i can without realizing equity ! !
i take home 850pw and have no liabilities what so ever would like to buy between 250k-290k

What are your thoughts on my situation ? do i need more savings etc
please ask for more information if required

1. Sounds like you are cross securitised – fix that up ASAP

2. Do an upfront valuation and access the equity and try and borrow 105% of the purchase price (or as much as possible) without cross securitising any properties.

3. Ensure that loans are interest only w/ linked offset. Accumulate all your funds in that offset.

4. CBA is a very conservative lender when it comes to servicing so plan for this long term

Sounds like you need a turnkey solutions – which is for the person to ascertain the DA and CC and then develop, get the OC and hand you the keys – is that correct?

If the property is in QLD then its best to contact RPI from this forum – he would be able to put you onto the right people.

Ah ha funny story – Adelaide Bank doesn’t like it but Adelaide bank funded mortgage managers can process it fine.

Why are you going with Adelaide bank though?

Trusts are ok with must banks. Who is the lender that said no and what type of trust is it? i.e. Family, Unit, Hybrid?

It sounds like it may be a Hybrid Trust.

Westpac only goes to a max 65% they can go 70% but its on a case by case basis (meaning that your application would need to be extremely strong). Plus they will want to cross securitise your resi property.

BoQ also has very conservative servicing so again you need to have strong servicing to go with them.

I reckon you will find bank west to be your best option.

1. LVR – big difference as depending on the property type Lender A may lend 50% LVR whereas Lender B will give you 75%.
2. Features like offset (yes you can get an offset even with a commercial loan)
3. Fees (this the variation between lenders could vary quite a bit)

That explains a lot. Different lenders will lend different amounts based on your income and liabilities. ANZ is down there with the links of Bankwest and ING as one of the more conservative lenders. Other lenders like AMP, NAB, Macquarie will certainly lend you more.

Also why are you doing a LOC and not a term loan. Its cheaper and there is no repayable clause?

What is the LVR?

Definitely commercial – the contract of sale should have “boarding house” listed on the front page.

Is there an existing agreement (not expired) in place as this will be quite important.

Steve R wrote:

Hi Oscar,
Nice work. Are the majority of your developments in NSW? Can you recommend a savvy broker that is switched on with the process of getting money for building projects for developers that are the registered builder? I have found previously that when a bank finds that i am the builder and the developer they become increasingly difficult to deal with. Any suggestions?
Thanks,
Steve

Many do owner builds but LVR is limited to 60%. One lender will 75% and the other will do 80% (or more depending on the strength of the application).