40 year loans - what viable options are there (if any)

Discussion in 'Loans & Mortgage Brokers' started by HonestShiba, 1st Jun, 2021.

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  1. HonestShiba

    HonestShiba Well-Known Member

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    Hey all,

    If I'm remembering correctly, a while back I saw on Investor Prime Real Estate Youtube video mentions of 40 year loans as a way to improve cashflow/serviceability.

    Quick search on this forum doesn't seem to have any mention of them. So do they exist here? Which lenders offer them? Are they actually viable products to incorporate into a strategy?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Pepper used to do them I think.
    86400 do 35 year loans, next best thing to io
     
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  3. HonestShiba

    HonestShiba Well-Known Member

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    Thank for insight Terry. Interesting that the next best is 86400 with their 35 year loan. If I'm not mistaken they aren't a part of any brokerage networks? So many will not hear of this option from their broker
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    They are, we use them.
     
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  5. David Hui

    David Hui Well-Known Member

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    Pepper will still do 40 years but only on their higher priced products. TMB will look at 35 years for teachers and emergency service workers.
     
  6. Lacrim

    Lacrim Well-Known Member

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    Their serviceability hurdles generous?
     
  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    so so. But they can only handle vanilla stuff
     
  8. Lacrim

    Lacrim Well-Known Member

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    Vanilla huh, I need lenders who can handle a Carolina Reaper like me.
     
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  9. shelleykins

    shelleykins Well-Known Member

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    David, does this include other school staff (non teaching) or only teachers?
    Thanks
     
  10. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Whats the purpose of a 40 year loan term ?

    You'd probably refinance it and extend over 30 years again within 5 years.
     
  11. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Prob a good option if you were planning to stop work - extend back to as long as possible assuming you would never be able to borrow again.
     
  12. David Hui

    David Hui Well-Known Member

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    Hi Shelley, looks like only teachers. One applicant needs to be under 35 too.
     

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