90% no LMI loans for Accoutants - Future rental income

Discussion in 'Loans & Mortgage Brokers' started by Simon_H, 20th Apr, 2018.

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  1. tobe

    tobe Well-Known Member

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    I’ve done the numbers, their rates are higher and it’s line ball saving the lmi In the scenarios I looked at.
     
  2. Greyghost

    Greyghost Well-Known Member

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    4.4%
    Investment purpose
    Interest only
    90% LVR

    Deal looks clear cut and beneficial to me.
    Plus if you are looking to spread your capital efficiently, using 90% LMI deals are useful in the acquisition phase.
     
    JohnPropChat likes this.
  3. tobe

    tobe Well-Known Member

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    Sounds better than the rates I was dealing with last year. I estimated the lmi (which are claimable over the first 5 years) and the interest differential and it was 2 years to break even.

    Looks like they have sharpened their discounts since then.
     
    Greyghost likes this.
  4. Marianna

    Marianna New Member

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    Hi,
    I'm looking into using the 90% benefit with no LMI, BoQ said offer expired on 30/06, Westpac is still offering but rate is not competitive (3.98%), does anyone know who is giving a good rate at the moment?? Thank you!
     
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Competitive against ?

    if the volume is high enough CBA could maybe come to the party at 3.6x

    ta
    rolf
     
  6. Marianna

    Marianna New Member

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    Thank you,
    Competitive against ANZ and others offering between 3.6% - 3.7% atm but with no benefit of 90% without LMI, not sure how attractive my mortgage is for the banks as I'm borrowing below $500k.
     
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    I think the issue could be wanting to get lmi based rates but not paying the premium.

    Within reason you want get a toyota at a Lexus price.

    Cba is likely your best bet with the very little information we have to hand.

    Ta

    Rolf
     
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  8. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Hi Mariana

    What is this rate for? Owner Occupied or Investment? Is it Principle and Interest or Interest Only?
     
  9. Mat L

    Mat L Member

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  10. Dan3213

    Dan3213 New Member

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    How is the lending market treating CAs now in terms of no LMI on 90% or 95% LVR? assuming combined income greater than 150k

    Any recommendations on banks who are still offering this?
     
  11. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Same lenders are still doing it, ie. CBA, Westpac, St George and BoQ.

    CFA is included.

    CBA have a small niche over the other lenders where the client can be registered in Oz but can be working overseas. They will still be eligible however the dragon and westpac dont offer this for customers working overseas.

    Same requirements apply.
     
  12. Dan3213

    Dan3213 New Member

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    Are any doing 95% with no LMI?
     
  13. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    No.

    There were a few lenders years ago that did a 90% no LMI, plus a personal loan or credit card for another 5%, but that's not the same thing and I don't believe it would fly today anyway.
     
  14. Redwood

    Redwood Well-Known Member

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    I'm shocked that you read CPA magazine ...

    Cheers Ivan
     
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  15. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    No one is doing 95% but if you have your own practice then there are a couple of lenders that will lender against your practice book so you can potentially do a hybrid of borrowing 90% no LMI against the security and borrowing against the book.

    The big issue is going to be servicing and this is only available to self employed Accountants and not company Accountants, etc.
     

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