In the latest API these types of loans were mentioned. Is there any word on the street as to what might come of these products in the Australian market?
I can’t see any call for them myself. What would be the proportion of interest payments to capital over 40 years![blink]
I guess the credit card brigade might think it was a good deal though!I don’t think so but who knows.
In my opinion, the amount of money lenders allow people to borrow is high enough.
What needs to change is the standard mortgage insurance policies. For example, you can borrow 95% up to a max loan of $500k. This needs to be increased to $750k (or higher) in Melb & Syd. You can’t buy much in Melb & Syd for $500k in suburbs close to the city. I can see this changing.
Cheers
Stu
I agree with Stu.
I constantly get frustrated by the mortgage insurance limits. With only 2 insurers, buy more than $1 million of property and your loan options (particularly if you’re self employed!) shrink to almost nothing unless you’re willing to pay double digit rates or find 30%+ deposits.Keep smiling
Felicity
Hi Felicity. There is another one now! I think they are called “The Mortgage Insurance Company” or TMIC. The cover First Mac’s loans (and others maybe), and First Mac do offer low docs. So that may be another avenue for you!!
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
Thanks Terry, I’ll check this out.
Keep smiling
FelicityTerry,
Aren’t they also owned by GE? Not sure if they are chasing a different market or playing in the same arena as GE & PMI.
hi fw and all – so this MORTGAGE INSURANCE that we have heard of for years – is that only through 2/3 companies in all of australia?
peter
mt gravatt east
mighty LIONS territory!!
Woodsman
I am not sure who owns them, but their policies are different to GE. eg. they will do inner city, will also do low docs credit impaired up to 95% etc.
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
Hi Peter
Yes, it is. It’s very frustrating if you have plans for a large portfolio!
I remember when I started out I was mainly looking for high LVR and low interest rate.
Now I think about if it’s mortgage insured and who by, what sort of deferred establishment fees there are etc etc
Funny how your focus changes!
Mind you, I’d still like higher LVRs…. heheheKeep smiling
FelicityThey are owned 50% by GE and 50% by Allco
There are only two main players in the mortgage insurance game. These are Genworth and PMI…
http://www.mortgagepackaging.com.au/index_files/mortgage_insurance.htm
As well as these two, there are many other mortgage insurace companies but they only insure the lender that owns them or closely affiliated groups. They allow these lenders much more flexibility and to charge a large fee to do the higher risk loans.
I personally would love to own a mortgage insurance company.
Robert Bou-Hamdan
Mortgage Adviser
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