Hi All,
I wish to make this thread the focal point in helping young investors or those without a regular income in finding appropriate mortgatge brokers or finance.
Please reply if you know of any mortage brokers / financial institutions, that will lend money to young investors or the unemployed with no jobs who have substantial deposits 20-30% saved up.
Also anyone who does low-doc / no-documentation loans and the associated interest rates etc.
p.s Can anyone recommend to me a good broker / lender in the NZ region who will lend money to a young student investor with substantial deposit.
Cheers,
Christian
There are various products such low doc loans where you have to state your income and no doc or asset lend loans where it is not even asked. You generallly have to be self employed for around 2 years for low docs (get an ABN now!).
Asset lends can be done on the value of the property alone. I know of one product at 85% lvr with a rate of 9.5% (+ hefty upfront fees). Another at 65% at around 7.45%.
There are also private lenders that lend based on valuation only. Rates are higher, but if you can find cheap properties, you may be able to get 100% finance, but it is extremely hard to do, and also hard to convince a valuer to value the property higher than the contract price.
Low doc loans start in the low 6%s at 80% LVR and range up to 10.15% at 90% LVR.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for your reply Terry.
I have a regsitered business name and ABN number that didn’t really make it through the first few months. Never ended up filing any reports to Tax Office etc. The business name & ABN are still in my name and I’ve had it for around a year.
Is that enough for a low-doc loan? stating that I have a registered business and ABN number? If It would help I could start it up again but don’t see what difference it would make if there was no financial history.
I have 30% cash deposit available and need a loan for an investment property but am studying at the moment, do any financial institutions accept this sort of applicant criteria that is without the low-doc/no-doc/rise in interest rate loans. I just want the normal mortgage. If not then I guess I will have to revert to the latter.
Hope to hear from you or anyone who can help.
Christian
Hi Christian & Terry,
Agree that most ‘normal’ lenders focus on serviceability & look for 2 years employment history – self-employed or otherwise but I have heard of folks with less work experience and very strong deals (ie cash flow +ve) having success with NAB as they think more like business bankers (don’t they own an NZ bank?) for the lowest fees. Try to get into an asset lend – ie put up about 25% deposit and where 80% of proposed rental income covers debt & lenders doors will open. If you do have to head down the non-conforming path (with about 10% of the population) best options in Oz are probably Liberty then Bluestone, anyone know any NZ equivalents ???
Keep hunting!
Mel
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