Hi all
I have a messy problem.
IP 1 – Loan – $295,000 – Current Value around $450,000
Fixed interest rate of 6.99% (lo doc)IP2 – Loan – $400,000 – Current Value around $450,000
7.12% (lo doc)The above 2 loans are with the same lender.
At the time to avoid LMI I used another property as security which is owned outright and approx value $500,000, currently the lender has the title which I would like back as may actually look at selling this for another deal.
The bank advised that I can use another property as security and take the title back.
I would like to use IP1, I would probably prefer to pay LMI and take title back at this stage.
I hope this is making sense and someone can give me some ideas on what may be the way to go as I know this will probably be an expensive exercise.
Cheers, Marisa
(Hard work never killed anyone, buy hey why take a chance)
You have total debt of $695,000
So a 80% Lo Doc loan on both would cover it
IP1 Loan 360,000 Value 450,000
IP2 Loan 360,000 Value 450,000
and should release your other title.
If both are with the same bank, tell them that is what you want to do, or take your business elsewhere.
If different banks, do a variation on the loan on IP1 and get access to the other funds.
Tell the bank for Ip2 that you will be reducing the LVR to 80% and want your title back, or otherwise you will take your business elsewhere.
Regards
JohnInspired Finance
(02) 9944 7776Hi Marissa
I agree i cannot see the problem.
The security your current lender is holding appear sufficient on a standalone basis with the need to hold your unencumbered investment property.
Your current LVR is 77% so i can see no reason why they would need the additional security. If reducing the LVR to 76% alleviates LMI then this maybe an option.
If you dont wish to sell IP 3 then why not set up a lodoc Line of credit against it and utilise this to increase your current borrowings.
As John mentioned if the current lender says no take your business elsewhere. Even with yesterdays 25 basis points increase there are many competitive lodoc rates around.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Thank u Richard and JohnSmith
I initially contacted the bank and spoke to 3 different people and got 3 different answers. I was hoping to get an idea but gave up at the end.
I appreciate your help.
Great to have all this expertise on this forum.
Cheers, Marisa
(Hard work never killed anyone, buy hey why take a chance)
Just ask for a “release of security” form.
Terryw
Discover Home Loans
Parramatta
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Hello
I thought that for a lodoc loan the maximum LVR was 60% (without LMI) At least that is what I was told by my lender, the ANZ bank.
Are they non competative in this area?
Thanks
ElkaThat’s the case with ANZ, but not all lenders.
Terryw
Discover Home Loans
Parramatta
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No Anz Bank are not competitive in the lodoc market.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
No ANZ are not competitive on anything!
Sorry if I offend any ANZ employee or customer!
Gio
It depends on the LVR. I think ANZ have one of the cheapest rates if under 60% LVR, and the loan is on the breakfree package with the 0.7% discount.
But, they will not do low doc loans for companies or trusts.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.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
Just a couple more questions……
I am seeing a shift in WA market, what if security comes in under 70%LVR???
Can I top it up I have a couple of LOC?
Do most lenders allow this?I do have concerns when it comes to getting properties valued as sometimes they come in way under. I imagine many have had similar scenario.
I had another property last year come in at $100,000 below market value, it was frustrating as at the time had to accept this due to urgency of contract. Also the broker I was then dealing with at the time also said I would do nothing about this.
I would be interested on experiences regarding this.
Cheers, Marisa
(Hard work never killed anyone, buy hey why take a chance)
Originally posted by giovanni:No ANZ are not competitive on anything!
Sorry if I offend any ANZ employee or customer!
Gio
Don’t be sorry about offending any bank – they have thick skins, big profits and love to call in their funds if you default. Be loyal unto thyself.
Cheers,
Marc.
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