Hi,
Does any know of any financial institution will lend 95% LVR to an investment property?I have tried to search the net & approach two brokers but they all say 90% is the max.
Hi Matduqua
Try ANZ. They lend up to 95% and also capitalise mortgage insurance (thus becoming a 97% lend!). You would need to demonstate a savings history as part of the qualification process. Hope this helps.
Others include Bankwest anmd Macquarie (no LMI capitalisation).
Cheers
Oscar
Hi Matduqua,
I was meeting with some mortgage brokers recently, and they mentioned NAB too.
95% lends come out of the competitive lending market which is around right now. I guess you can only reduce your interest rate so far, so you win customers on terms.
But Oscar’s right – there are a few more hoops to jump through. After all, they have to mitigate their added risk.
Try some other (more creative) brokers. I know that 95% lends are out there, but even if you don’t qualify, 90% is still excellent leverage.
Brent Hodgson
PropertyInvesting.com Crew***********
“Wealth is the product of man’s capacity to think.”
-Ayn RandHey Matduqua,
A couple of questions.
Have you already signed contract on the property?
Do you require 95% because you only have 5% deposit?
Is the property positive cashflow?
What are your plans for the property?
Are you paying full market value?
Thankyou Oscar & Brent, I will try some more broker who deals with ANZ & NAB
Leigh,
To answer your question:
Have you already signed contract on the property?
No I haven’t. But I have a hold on the property & also secure the price.Do you require 95% because you only have 5% deposit?
Yes & No. I do have 10% but like to keep my cashflow high.Is the property positive cashflow?
No, I am only just start with this & I haven’t been able to look for one with +cashflow yet.What are your plans for the property?
To gain in Capital, I have done some homework on the suburb & believe it has already been increase by 8% for the last qtr.Are you paying full market value?
I believe the market is already up compare to the price that I secure the property.Are you trying to make me re-think on the purchase?
Not at all trying to make you re-think the purchase, given the capital increase it sounds promising (providing it isn’t highly negative cashflow!). I am trying to open your mind to other finance possibilities.
For example, if you purchased below MV or the property increases in value over a short period you can refinance your deposit out (with a bank which co-operates with your plan). Most banks have what is called a stand off period (usually 4 months I think) in which you can’t do this, but after that time as long as you keep to the banks LVR and they are happy with your financial position you should be fine.
If you have equity somewhere else you may also consider talking to your bank in how you can use that. If the property has increased in value you could simpily put a temporary mortgage over another property (or car) to bring the LVR to 90%. Then once the stand down period is over transfere entire mortgage to investment as the LVR will be 90% on improved value. You may even be able to add some renovations to increase the value.
If it was positive cashflow you may have considered a money partner (who would put up the entire deposit!).
Good luck [
]Leigh,
Thankyou, it definetely open my mind to other alternative.
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