It has become possible to leverage up to 3to 4m in loans through a number of different lending institutions without proof of income or financials
Ie Adelaide bank will lend up to 1m 76% LVR with mortage insurers ge however Liberty finance Bluestone finance and pepper home loans are self mortgage insured and do not need ge or pmi to underwrite .This means self employed are no longer stifled gearing up to say a 5m port folio of property.
Based on a statuory declaration of income inc rental income funds can be obtained by the way Liberty finance will lend up to 90% LVR .These are their quoted facts and their web site information will confirm this.Thanks Alwayslearning. Mind you, I took a look at the Liberty site and they’re very short on detail when it comes to their interest rates…
Keep smiling
Felicity
Yes, GE Finance will also do 90% LVR low docs, but rates are over 10%. In these cases it may be better for you to be a wrappee, as the rate would be lower and the exit fees less. Exit fees on the non conforming lenders can be up to 4% of the loan amount.
Adelaide will do up to 80% LVR with mortgage insurance or up to 75% without. Same with ING. Suncorp will go up to 80% LVR with non LMI too. Then there is St George, ANZ that do low docs without LMI, but at a lower LVR – 60% to 65%.
Terryw
Discover Home Loans
North Sydney
[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
There are a few obstacles however Alwayslearning.
Firstly in order to borrow a total of say $ 4 M one needs an income of probably $ 400 K or even more (including rents).
One cannot hide from the latest lender that one has some $ 3 M or so in loans from other lenders as a Low Doc loan means that one normally would be required to provide a statement of assets and liabilities.
This statement would therefore show these loans and your commitments to pay the interest.
If one omits these details the information could nevertheless still be picked up from other sources !!
Also, do you think you can state you have an income of say $ 400 K p.a. with a straight face ?
[]Furthermore some lenders have a rule which doesn’t allow you to have (for example) more than a total of $ 3 M in total loans (both theirs as well loans from other lenders).
Secondly, there will not be too many lenders in this country (I don’t know even of one such lender) who would be prepared to lend 80% on a
$ 1M property.The moment your loan exceeds (depending on the lender say $ 700 K the LVR dives from 80% to a much lower one (like perhaps as little as 50% !!
So you would therefore need larger deposits than you envisage at this moment.
Thirdly, what would happen if one (or, heaven forbid, two) of the properties isn’t tenanted ? You would have to find the shortfall out of your own pocket !!
Fourthly, you may not be able to sleep with such kind of money owing [
]Pisces133
There are a few obstacles however Alwayslearning.Firstly in order to borrow a total of say $ 4 M one needs an income of probably $ 400 K or even more (including rents).
One cannot hide from the latest lender that one has some $ 3 M or so in loans from other lenders as a Low Doc loan means that one normally would be required to provide a statement of assets and liabilities.
This statement would therefore show these loans and your commitments to pay the interest.
If one omits these details the information could nevertheless still be picked up from other sources !!
Also, do you think you can state you have an income of say $ 400 K p.a. with a straight face ?
[]Furthermore some lenders have a rule which doesn’t allow you to have (for example) more than a total of $ 3 M in total loans (both theirs as well loans from other lenders).
Secondly, there will not be too many lenders in this country (I don’t know even of one such lender) who would be prepared to lend 80% on a
$ 1M property.The moment your loan exceeds (depending on the lender say $ 700 K the LVR dives from 80% to a much lower one (like perhaps as little as 50% !!
So you would therefore need larger deposits than you envisage at this moment.
Thirdly, what would happen if one (or, heaven forbid, two) of the properties isn’t tenanted ? You would have to find the shortfall out of your own pocket !!
Fourthly, you may not be able to sleep with such kind of money owing [
]Pisces133
appreciate your input Adelaide bank will lend up to 1m low doc at 76% i have such a loan
Also other low doc lenders are lending on top of this the limit i havent determined yet i will take on board some lenders will only go to 3m
Surely if one drops off property and realises say 300k in capital growth that is classed as income as well as rental income justifying a stat dec?
Peter
Just going from memory, I beleive Bluestone will lend up to $2mil per security at 80% LVR- even on a low doc.
Terryw
Discover Home Loans
North Sydney
[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
The lenders I am familiar with do not require a Statutory Declaration, just a statement by oneself as to income and that one is aware of one’s obligations and is capable of servicing the loan.
I would think that everyone concerned is well aware that a Low Doc is in essence an asset loan even if the lenders do not appear to state so outright.
So I don’t think anyone really cares all that much how much one declares as income as long as it isn’t obvious that the statement is a fabrication. (for example by stating a high income whilst having accumulated very little in assets).
It looks to me as if the main aim of a Low Doc lender is that in the event of a courtcase he can say : ‘ The borrower stated ample income to service the loan, and the loan is an unregulated loan as it was for investment purposes.’
Thus the lender cannot be blamed for lending whilst being aware that the borrower couldn’t service the loan.
Correction : I stated earlier that I didn’t know even of one such lender who would be prepared to lend 80% on a $ 1M property.
I was wrong of course as a Low Doc Latinum loan can be obtained on a 80% LVR against a $ 1 M security. [
]Cheers,
Pisces133
]
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