Hi all,
Any suggestions for a loan of around $140-145k, IO, 90%LVR, so LMI will be applicable.
The purpose of the loan is for my first IP. Looking to pay IO for the first year or so, after my reno’s are done, refinance to purchase 2nd IP etc..
Some websites don’t quote a minimum amount, where-as others require $150k minimum.. Any thoughts would be appreciated! Thanks
Hi Midsomer
There's not enough info to provide a decent response. Have you considered using one of the decent brokers on this forum? They'll be able to provide a comparison on products suitable to your circumstance.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I'd also suggest that you talk to a mortgage broker who can give you more specific advice about your situation, and give you loans that can suit you
Heh Jamie do you know of any then lol ?
At 90% lvr you should be able to get IO for 5 years and probably looking at a rate of say 6.45% with no applic, val or ongoings.
Capitalised LMi is fine at 90%.
Assuming of course security is in an acceptable post code region.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Qlds007 wrote:Assuming of course security is in an acceptable post code regionI recently inquired about a loan and the max LVR I could obtain, the lender didn't give me anything.
If the suburb has a population of +10,000 is it safe to say it would be max LVR?Also what's the rules for IP's? …. lower LVR right?
Hi Von
Each lender / mortgage insurer will have post code areas they lend in and the maximum lvr in each. (This will depend on a few factors)
Course in the larger towns and cities you are more likely to get a higher lvr.
Not sure the post code you are referring to so difficult to answer it fully.
Feel free to drop me a line with the post code and i can tell you a bit more.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Midsomer wrote:Hi all,Any suggestions for a loan of around $140-145k, IO, 90%LVR, so LMI will be applicable.
The purpose of the loan is for my first IP. Looking to pay IO for the first year or so, after my reno’s are done, refinance to purchase 2nd IP etc..
Some websites don’t quote a minimum amount, where-as others require $150k minimum.. Any thoughts would be appreciated! Thanks
Most teir 2 lenders have a min loan amount of 150k ( profit margin ).
Most of the larger banks including the big 4 have products that allows for a lower loan amount…normally around 50k+ as a min..Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Thanks for the response guys. I’ll tryin’ explain best I can.
House price is $165k. should be looking at purchase price of around $160k.
10% deposit or $16k.. or maybe $17k just to be be sure i’m under the 90% LVR. I’ll pay stamp duty, fees etc out of my own pocket, so the loan balance should be around $144k or there-abouts.
Looking at doing renovations around 10-12k.., which should value this property around the 190 mark, perhaps 200k.
I should be able to refinance to 90%, being 180k of the property value, pay the additonal LMI top up premium, and release $36k equity, correct?
Hope this helps!
Correct to a point; presuming—>
1. the renovation adds the value you expect Compared to the market
2. Valuer agrees with the value
3. LMI allows for the extra increase + agrees with new valuation as well ( presuming you go with a lender that doesn’t have DUI)
4. You can service the increase
5. The product you choose allows for a split structure or equality releaseAlso note; it’s up to the bank if they would allow a 2nd valuation or not…and if they do allow the 2nd valuation /release then normally you need to wait 3-6 month as a min.
So i would highly suggest you speak to a broker- as they would be able to find you the right lender that suits your requirements + the above points + the right product to suit your overall long and short term goal.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Is the split structure, a loan that would be $144 (loan a) and $36k (loan b) being the equity loan?
Why would the bank not allow a 2nd valuation? Just curios..
1. they may see it as a pointless exercise
2. Some banks are very risk adverse to this sort of investment strategy ( increase debt level as market increase…so what will happen when market decrease?) especially the LMI ppl
3. Some valuers would blank out any small increase within a short period of time ie under 5%
4. All banks prefer to hold loan books with no LMI ( under 80% )–the magically number is acutely under 75% LVR- Non-lmi loans = less risk, higher “market”value ( if they sell…more targeted to smaller banks) , better risk marginsSo increase your equity as you go would just push your LVR up back to the original or higher…especially if it’s an I/O only.
So it’s a great strategy- one that i do myself for my IP…but lenders, product choice and loan structure is very important- it needs to match your needs..a lot more important then finding the “lowest rates” .
Give Jamie or Richard a buzz and they will be able to help you out; they are active investors as well.
Regard
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
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