Currently I have a loan taken from First permanent home loans @8.5% but they loaned 106%
Is there a better alternative
please let me know
Also is there any way to get 100% or more LVR NO DOC loan?
JimJim
Would you like to expand a little further on what you refer to as a No Doc loan. Do you mean a loan with no income documentation ?
I assume that First Permanent HL requested proof of earnings?
Cheers Richard
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Hi Jim & welcome to the forum,
There are 100% loans available at a much lower rate, if you have genuine savings you may qualify for a 100% lend at 6.79%An alternative to a 100% lend may be a 90/10 non-genuine savings product, there are many options/products available, however the right product for you will depend on your current circumstance/situation, 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.
Jim,
The First Permanent 106% loan is a full doc. While the rate is a tad higher than standard, these guys will get you out of that loan into a conforming one ASAP. They even encourage their introducing brokers to ‘refinance’ the loan ASAP. Great Product…does anyone know who the genius behind the 106% is???
Jim
First Permanent is owned by Devine Homes a good old local Brisbane company.
They are the pioneers of the no deposit home loan where they even pay your stamp duty and all of your legals where you build a home through then.
The fact that the want you to refinance asap would have nothing to do with the fact they have a considerable cash bond tied up with Bank SA (now owned by St George) guaranteeing the loan which they would like you to release.
Cheers Richard
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Richard –
Thanks for the Devine Ltd clue – I just visited the establishmentloan.com.au web page which is the loan brand name of First Permanent. There I discovered that First Permanent – while owned by Devine – is actually funded by Merrill Lynch New York. Where does Bank SA/St George fit in?
Ron
Keep in mind the LMI or in this case the Mortgage Risk Fee at 106% LVR is 2.5625% with an extra .76865% due if the loan is discharged in the first 5 years, this does not include the DEFs of 2.75% 2.25% 1.75% in year 1 to 3
The 106% is designed/suited with the FHOG covering the MRF and balance of stamp duty charges etc, I would question the use of this product without access to the FHOG. If you do have access to funds to cover the shortfall then a cheaper 100% product or 90/10-non genuine product would probably be a cheaper option anyway. 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.
Ron
Merryl Lynch provide the wholesale funding for First Perm.
The normal Devine homes 100% lend is done through a development guarantee where Bank SA who are owned by SGB fund the loan on the basis that the Devine offer a CD based on a percentage of the loan book.
Cheers Richard
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
HI Jimoan
Not sure of the question from a lender point of view you would like better then 106 % or you are looking at a no doc 100% loan.
If either what do you see is in it for the lender.
I don’t do 106% lending I know a couple of brokers here do and I have recommended a couple before but I am interested what you think would be better then no cash outlay with a 106% lend on a 8.5% rate.
I have a lot of commercial who would beat me with a stick to get that.
but I will watch with interest as this is not my market.
and I live and learnhere to help
Any banks/lenders giving 106% loans in WA?
Thanks!
Unfortunately without the FHOG cash outlay is still required on a 106% lend,
As the extra 6% will be insufficient to cover app fees, mortgage risk fee, legal and stamp duty charges etc, 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.
Straight from the horses mouth.
David Devine and I play golf together at RQ and have done for over 6 years.
Cheers Richard
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Hi Guys thanks
Let me answer some of the questions
Situation when I took the loan
Yes the 106% lona was full doc loan
Myself and my partnerboth Employed PAYG but not eligable for FHB grant.
Rather than renting we went for this 106% loan at high rate
Current situ
Wife = working
Myself = Self employed, new consulting business no guranteed income.
So in this situation can I get a better loan (considering break up costs)Loan is 231K (House 219K), I can bring at the most 10k Cash
Can somebody help?
JMHi JM,
Unfortunately you don’t have a lot of equity, there may also be issues regarding employment status.Option 1: A standard refinance at 95% and possibly an option to capitalize the LMI into the loan.
Option 2: Low doc refinance at 95% LVR (Probably not a viable option under the circumstances)
Option 3: depending on the break costs with your current lender it may be more beneficial to wait and build up further equity and refinance at a later stage.
Its very hard to recommend which would be the correct option without further personal details, feel free to e-mail or call if you want me to take a closer look at your options. 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.
Word on the grape vine is that First Permanent will next week announce its 106% loan is to include SELF EMPLOYED & Investor with 70% of rental. Apparently their loan limits are to go up but I don’t know by how much. A broker buddy in Wagga said they will be allowed to lend there.Some other announcements are to be made (but don’t know what)
ANYONE KNOW MORE??…IS IT TRUE?
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