PROJECT
To Purchase a property with max. $ 5000 outlay and all other costs such as loan to be met by financial entity. In other words buy a property for say $ 200,000 pay $ 5000 and borrow rest of the money.
FINACE
Need 100% finance. Only the purchase property is to be used as security. Property is always cashflow +ve in pre tax $. Post tax $ are even better. No cross financing is to take place.
PROPERTY
Is always cashflow +ve. from rental income.
LOCATION
I am located in NSW Aust.
CURRENT FINACE
Currently the brokers are telling me that I can borrow 80% on residential property on low doc. Other 20% I need to find.
100% full doc loan can be achieved but that takes into account my current assets. I do not want to use the equity in my home to achieve this.
AIM
To be able to buy as many properties as I can find which are cashflow +ve. they then do not need to supplemented. Capital growth is a benefit after some time. Cashflow is an immediate benefit. If there is cross linking I would not be able to buy more than 5 properties in a year.
SOLUTION
If you can think of a solution please contact me on
Ph. 02 42976388
Fax 02 42 954690
M (0414) 566 133
E mail [email protected], [email protected]Tony Dragovic
P.O. Box A58
Shellharbour
NSW 2529[blush2]
It will be very hard to borrow 100% finance for an investment property. Even harder if the property is located in outside a city area.
Terryw
Discover Home Loans
Mortgage Broker
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
$5K & 100% finance would not be enough to cover your closing costs, Stamp Duty, LMI etc on a $200K purchase.
However certain lenders will lend up to 106%, but be warned the rates are high.
With 106% finance and your $5k you may just have enough to cover the LMI & stamp duty etc on a $200K purchase.
E.g., finance based on a $200.000 purchase in NSW @ 106% LVR$212.000 Loan Amount
$5.490 transfer stamp duty
$789 mortgage stamp duty
$150 land & mortgage registration
$5.500 approx. LMI
Total $11.929
Your initial $5K should cover the associated costs of solicitors and application fees, Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Which finance providers provide 106% LVR loans????
FFComm
106% lending. whoah, I don’t even want to know the rate on that!
J.
its still single figures…just.
its the mortgage insurance you have to brace yourself for!!!
cheers
brahms
CALL NOW…adults only (boys and girls ask mummy or daddy first) ~~ 1900 HOT BROKER ~~Establishment Loan Interest rates are approx. 8.99% on 106% LVR, LMI is around 2.57% and approx. $1800 for establishment fees. Not for the faint hearted. Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Steven
Is this available only as full doc, or for low/no doc as well?Keep smiling
Felicity
Steve,
If I re arrange the situation. How much money do I need for a 100% finace on $ 200,000 property?
Alternatively how much finance can I get if the property is to be stand alone in other words not dependenat on other property equity if the rate were in line with current lending rates? ie 6.5 – 7.5%.
Tony
A couple of years ago I got a 100%+ loan for an investment property from St George at a fixed IO rate of 6.29%. This was using equity in an existing property. I think this is the cheapest way to do it. If you don’t want to use existing equity then it will be quite expensive and difficult to get a 100%+ lend. I don’t understand why you would not use equity (unless you were wanting to buy in a risky area). A lot of lenders will also baulk at lending in areas with a population under 10K. Wherever there is increased risk to the lender they will generally charge you more in interest. Hope this helps.
Hi Felicity,
Unfortunately there is not a 100% low/no doc product available at the moment.
BTW, No savings history is required on the 106% product, Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Originally posted by dragovic:Steve,
If I re arrange the situation. How much money do I need for a 100% finace on $ 200,000 property?
Alternatively how much finance can I get if the property is to be stand alone in other words not dependenat on other property equity if the rate were in line with current lending rates? ie 6.5 – 7.5%.
Tony
Hi Tony,
On a $200K purchase with 100% finance you will need approx. $16.000
This figure does not include solicitor or establishment fees.Alternatively, If you have access to available equity then I would suggest using these funds to finance the new purchase as stand alone and at a lower LVR, this will insure your portfolio is not cross colaterised and will also give you access to a lower rate of finance, Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
crusher, you did not get a 100% mortgage. While you might like to think St George gave you 100% finance they didn’t. What they probably did is give you a loan for say 80% of LVR on your new property, and increased you other loan by 20% (because if they did give you a loan for say 100% you wouldn’t of needed to use your exisitng equity).
People might not want to use equity for a number of reasons, one reason being is that they don’t have equity, another is that they would rather use equity on a more profitable project where the banks require higher LVRs (commercial for example), and yet they find a house returning say $2K +CF per yr.
8.9% isn’t that high, I’ve seen worse. FW probably full docs, but heres hoping!
In some ways I’m surprised that there isn’t a 100% loan with a higher interest rate that is more avalible (i.e. a 100% loan offered by the banks).
FFComm
FFComm
St George do offer 100% finance on one security.
Tony, Why don’t you just use existing equity and go for a 95% loan as Steven suggests, you will get a lower interest rate and will save on LMI costs. You can withdraw equity by increasing your existing loan (LOC or a split) and then use this as deposit.
Felicity, The highest LVR low doc available is with First Mac and can be up to 95% at a rate of about 9.56%, but not available for ivnestments.
Terryw
Discover Home Loans
Mortgage Broker
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
To FF comm,
I find it strange that you know with such certainty what sort of loan deal that I have. In one way you are correct, I did not borrow 100% of the cost of the property, the property I purchased was $175K and the loan was for $182K to cover legals etc. This is MORE than a 100% lend. This was all in the one loan and did not involve an increase on any other loan. I must point out that this was a full doc loan.
Tony- Search out all of the options because each lender is very different and their rules and regulations are frequently changing. A good mortgage broker will be able to find something that most suits your situation. Do you have existing equity that you could use?
Todd
Originally posted by FFComm:In some ways I’m surprised that there isn’t a 100% loan with a higher interest rate that is more avalible (i.e. a 100% loan offered by the banks).
FFComm
FFCom,
There are a few lending institutions who have 100% finance products.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Todd,
Based on the information you have provided, Your loan with St George is not a 100% loan in the true sense of the word,
St George has used the equity in your 1st property to secure finance on the 2nd purchase. In other words they have cross colaterised your portfolio, (2 properties taken as security over the 1 loan)
It would have been more beneficial for you to access the equity in the 1st property, and use these funds as a 20 % deposit on the second property purchase, the result would have been 80% LVR and no X,Coll. Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
So you basically cross colateralised the loan.
But in the end in my mind it was not 100% stand alone.So if you mess up with repayments they can sell the most marketable property, which might be the one which had all your equity in.
To me a 100% deal is where the bank gives you 100% of the finance, using the house as the main security alone. If I use equity thats not a 100% finance, because I am still throwing cash into the deal, it might not be cash I earned, but it still is cash that I could spend on variety of other things.
FFComm
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