90% interest only loan

Discussion in 'Loans & Mortgage Brokers' started by Eiko, 5th Sep, 2017.

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  1. Eiko

    Eiko Member

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    27th Jul, 2017
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    Sydney
    Hi there. I am interested in securing a pre-approval for my next investment property. Just wondering if there are still lenders who are allowing 90% investment home loans on interest only rate? I understand that the lending rules have drastically changed lately and am struggling to find any bank that will lend 90%.

    I may consider paying mortgage insurance if there is a bank willing to lend 90% for an interest only loan.

    I am in the legal profession so have qualified in the past without LMI.
     
    Eiko, 5th Sep, 2017
    #1
  2. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    31st May, 2016
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    Non bank lenders at this stage. The LMI and rate doesn't justify. Unless the deal is too good to miss and you don't have the savings or equity to move forward. Best to utilise bank lenders upfront
     
    Property Twins, 5th Sep, 2017
    #2
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    The Repayment Spread between PI and IO at that level is likely not worth the concept

    rates above well 5 % are typical, whereas one can get sub 4 fixed rates for PI

    ta
    rolf
     
    Rolf Latham, 6th Sep, 2017
    #3
    Property Twins likes this.
  4. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    Location:
    Sydney North Shore and Norther beaches
    Still some options in mid 4's to high 4's with LMI with banks.
     
    Marty McDonald, 6th Sep, 2017
    #4
  5. Marty McDonald

    Marty McDonald Mortgage broker Business Member

    Joined:
    22nd Jun, 2015
    Posts:
    880
    Location:
    Sydney North Shore and Norther beaches
    Still some options in mid 4's to high 4's with LMI with banks.
     
    Marty McDonald, 6th Sep, 2017
    #4