90% LVR loans for First home buyers

Discussion in 'Loans & Mortgage Brokers' started by HUGH72, 24th Mar, 2018.

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  1. HUGH72

    HUGH72 Well-Known Member

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    Hi All,
    We have a friend who is a FHB and they are looking for a 90% lend.
    Existing property (house).
    Stable government employment income.
    No dependants.
    Would meet banks servicability requirements but deposit isn't large.

    Which banks operate in this space? I have encouraged our friend to use a broker, as we always have, including our broker from PChat but they are a little hesitant
    Thanks
    Hugh.
     
    HUGH72, 24th Mar, 2018
    #1
  2. Morgs

    Morgs Well-Known Member Business Member

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    Plenty of options?

    Or are they looking for a parental guarantor to waive LMI?
     
    Morgs, 24th Mar, 2018
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  3. HUGH72

    HUGH72 Well-Known Member

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    No guarantor, just a p&I OO loan, they were unsuccessful with a credit union as the valuation came in slightly low despite comparables suggesting otherwise.
    I don't want them to burn their credit file being rejected again and are suggesting a broker is a better option.
     
    HUGH72, 24th Mar, 2018
    #3
  4. Phantom

    Phantom Well-Known Member

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    Why did they go first up to a credit union? Rate seduction I assume?
     
    Phantom, 24th Mar, 2018
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  5. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Anyone will do this as long as the security is within guidelines and their borrowing capacity allows - this is where a broker is invaluable, b/c a property one bank says no to is fine with lender 2.
     
    Jess Peletier, 24th Mar, 2018
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  6. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Most lenders operate in this space, and there's a lot of 'deals' available aimed at FHBs. Your friend is likely spoilt for choice!

    However this is where getting a broker to organise an valuation prior to applying can be invaluable. This is something you won't get by going directly to the lender.
     
    Last edited: 24th Mar, 2018
    Peter_Tersteeg, 24th Mar, 2018
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  7. Eric Wu

    Eric Wu Well-Known Member

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    start with the major ones, lots of choices, :)
     
    Eric Wu, 24th Mar, 2018
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  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    A broker can get a couple of vals on that property........... and place it where it values up, BEFORE applying

    makes 100 % sense to me

    Many peops have this romantic notion that Credit Unions and Building Societies are more ethical etc , and will be more flexible etc.

    The Flex bit is true, just saw someone approved for a loan that failed on their own calc calc by 1200 a mth :) and had a DSR of 55 %.


    The number one reality is, miss a couple of payments on your mortgage when you are at 90 %..........and see how long it takes before they get judgement.... and it doesnt matter much who you go with.

    ta
    rolf
     
    Rolf Latham, 24th Mar, 2018
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  9. HUGH72

    HUGH72 Well-Known Member

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    I ran a NAB property report for the property in question and it supported
    Always banked with them was the reason...:oops:
     
    HUGH72, 24th Mar, 2018
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  10. HUGH72

    HUGH72 Well-Known Member

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    Totally agree, but for those who borrow money for a property infrequently they don’t appreciate the value of a broker.
     
    HUGH72, 24th Mar, 2018
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  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Ahh

    the loyalty and convenience thing :)

    Funny how we realise that eating Maccas et al 3 meals a day doesnt work well long term..... yet we dont apply same to other areas of our lives

    They are NOT alone

    ta

    rolf
     
    Rolf Latham, 24th Mar, 2018
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  12. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    If he understands why he was declined, I’m sure he’ll understand that a broker can fix that problem he’s got. It’s not going to solve itself!

    He might do more harm than good trying to sort it himself, especially if it’s a bit of a unique or quirky property.
     
    Jess Peletier, 24th Mar, 2018
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  13. Watson1

    Watson1 Well-Known Member

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    A bank that doesn't price to risk (discriminate interest rate where LVRs >80%), uses QBE (due to FHO LMI discount) and provides discounts over the life of the loan (avoid honeymoon rates) would be my tip.
     
    Watson1, 27th Mar, 2018
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  14. Redom

    Redom Mortgage Broker Business Plus Member

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    Plenty of lenders will accept this, but appropriate lender selection usually comes about by balancing: rate, lvr & lmi fee.

    If it goes above 90% than lender choice narrows down a bit (not by policy, but by pricing). Some of the base variable loans are good here and target these higher LVR loans (NAB 3.69%, no ongoing fees is a decent product here). For deals above 90%, some lenders LMI fees are a fair bit cheaper, but usually have a significantly higher rate (e.g. Suncorp are cheap on LMI, but rate jumps up 1%!).
     
    Redom, 28th Mar, 2018
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