For the Brokers-
Can you give me a quick run down on the Pro’s and Con’s..as well as any tips on using a No Doc Loan (Thinking about it for the next IP)?
redwing
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorPro’s – easy application easy money. Easier for the broker for the same commission thats why they like them so much….
Cons – The ATO has the power to walk into ANY lender at any given time and demand to audit files at random eg; low or no doc loan files. If you apply for a low doc loan and puff or pad you income and the ATO audit that Lender and your stated income is more than you declared you are in a world of hurt. Yo have to prove to the ATO you didn’t commit tax fraud and then you have to avade a fraud charge from the lender and Mortgage insurer.
No-doc loans without an income declaration are great although the LVR is generally lower than a low doc. Saves the ATO issues though and thats always a great thing!!!!!
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055How about the interest rates on the;
Lo-Docs?
No-Docs?Compared to the current market rates..I’m looking for Fixed Interest-Interest Only?
Regards
Redwing
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorYou find the securitised lenders that offer NODOC loans are not very attractive on their Fixed rate loans but a LODOC loan you should be able to negotiate the same rate as a fully verified loan
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
O.K. Low Doc are available at 80% from 6.99 per annum (Comparison 7.09 on $300k over 30) 3 years fixed rate (Must have held ABN for 2 YEARS though) No LMI payable either, but you must declare an income.
No Doc Comparison Rates from 6.97% based on $300k over 30yrs.
In all instances this is general advice only and not intended to be taken or used as specific to anyone individuals circumstances. your own investigations may be warranted to determine if this product is suitable to your needs.
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055If you are appy to pay the LMI premium you would be looking at 6.59% fixed for 3 years maybe 6.75% fixed 5 years.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Originally posted by Qlds007:If you are appy to pay the LMI premium you would be looking at 6.59% fixed for 3 years maybe 6.75% fixed 5 years.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888It’s prefererred to get the LMI then and amatize the costs over 3-5 yrs ?
I’m thinking of refinancing a $80k Loan on a $200k Unit in my portfolio (Paid this loan out in full in Oct then drew against it again for another IP)..thinking to loan an additional $80k to take the loan to $160k and use the funds for another Purchase via a No-Doc Loan
Redwing
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI don’t see the point in paying LMI but if you like we have access to 6.69% fixed for 3 or 5 years across 1 loan or all of your portfolio it’s up to you with an LMI premium if that’s more your thing?
It is entirely up to you though. Personally I don’t see the point in paying the premium as in most cases it cannot be capitalised and has to be paid at settlement out of your pocket. Then again to save $480 per year on your loan of $160,000 at a cost which potentially voids any savings you may make (i.e; up to 3%), I know a heap of people who would spend the money.
Not that that makes any sense to me I personally think it’s better in my pocket but to each their own…..
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Ok Red a few things to consider…..
Are you certain you will require low/no doc finance?
(You may be surprised to find that you do qualify for prime lending)Do you have any current exposure to LMI on your existing debt?
(If so then tread carefully with any future self certification via the same mortgage insurer)Are you certain you require fixed rates?
(You seem to be quite active in the refinance/equity dept, break costs on fixed rates may hinder access to unexpected equity for future acquisitions.)Some food for thought, 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 Mobile Mortgage:Ok Red a few things to consider…..
Are you certain you will require low/no doc finance?
(You may be surprised to find that you do qualify for prime lending)
A local broker who works with another Investor i know thought I could get it via the normal process, we went through ST GEORGE and had conditional approval..the process then got a bit lengthy, they asked for more of the same documents and then after a few more weeks declined unconditional approval..EVERY loan is a battle for me [biggrin] But I dont give up..
Do you have any current exposure to LMI on your existing debt?
(If so then tread carefully with any future self certification via the same mortgage insurer)
NoAre you certain you require fixed rates?
(You seem to be quite active in the refinance/equity dept, break costs on fixed rates may hinder access to unexpected equity for future acquisitions.)
I prefer paying Interest Only..fixed rates just give me that sense of *locking* things in..I see your point though; maybe variable interest only is an option?All loans are not X-d but rather stand alone
Total Loans are still at $640k and values at around $1M + , equity as of late Jan of $365k (all IP’s in WA) and expecting to get all my tax back this year
Some food for thought, Cheers.
Got my Credit Report the other day..LARGE Document considering the loans and refinancing over the last year..St George’s recent inquery is on the list as wellRegards
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.
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorRedwing – Just because on lender knocked you back doesn’t mean they all will. this is where brokers come in. As Lenders all take into account your ability to service the loan in a different equation and it CAN VARY BY UP TO 25% the services of a broker in obtaining that extra property can be invaluable.
In so saying we can’t always get you there and I personally would walk on the low/no doc if I thought it was destinde to leave you in financial hardship. Some business is better left not done.
By the same token your credit report shouldn’t play too much of a role in influencing the lenders I mean I have well over the average number of enquiries on mine and would think most of us on here would due to the amount of buying and refinancing we all do for various property additions etc; It just goes with the territory and the lenders take that into account. Well some do anyway.
Help is always available. If you do a lot of refinancing then have you considered fixing a portion of your loan and having one part fixed and one variable? This may give you the security you are looking for.
Cheers,
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055RAMS have a low doc loan starting at 6.72% with no LMI – they also have a special for the month of April there is no application fee. Their no doc 70% rate starts at 7.24%pa. Dont forget that a good broker can do all this shopping around for you without charging you a fee so dont try to work all these things out for yourself – it gets too confusing. A broker can do the homework for you and it wont cost you any more than if you go to the lender direct yourself.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected][blink]Originally posted by redwing:Originally posted by Mobile Mortgage:Ok Red a few things to consider…..
Are you certain you will require low/no doc finance?
(You may be surprised to find that you do qualify for prime lending)
A local broker who works with another Investor i know thought I could get it via the normal process, we went through ST GEORGE and had conditional approval..the process then got a bit lengthy, they asked for more of the same documents and then after a few more weeks declined unconditional approval..EVERY loan is a battle for me [biggrin] But I dont give up..
Do you have any current exposure to LMI on your existing debt?
(If so then tread carefully with any future self certification via the same mortgage insurer)
NoAre you certain you require fixed rates?
(You seem to be quite active in the refinance/equity dept, break costs on fixed rates may hinder access to unexpected equity for future acquisitions.)
I prefer paying Interest Only..fixed rates just give me that sense of *locking* things in..I see your point though; maybe variable interest only is an option?All loans are not X-d but rather stand alone
Total Loans are still at $640k and values at around $1M + , equity as of late Jan of $365k (all IP’s in WA) and expecting to get all my tax back this year
Some food for thought, Cheers.
Got my Credit Report the other day..LARGE Document considering the loans and refinancing over the last year..St George’s recent inquery is on the list as wellRegards
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.
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorThanks Red,
I would strongly suggest you pursue prime lending further, and save the low/no doc route for a rainy day.I suspect the servicing problems with Stg would be the reluctance to add back the interest component on any investment debt not held with Stg.… this has the potential to kill servicing/max borrowing capacity.
Feel free to PM or e-mail me with the info, I’m happy to crunch the numbers and give you a list of alternative lenders that you & your Mortgage Broker can approach. Cheers.
Info required:
Loan amount & LVR required
Proposed rental return on new purchase.Total investment debt & monthly repayments.
Total non-deductible debt:
Credit cards maximum limit.
Personal loans.
Gross income:
Gross income on Investment.
Number of dependants.
Type & duration of employment.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.
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