Looking for lenders who use the actual repayments for servicing and who don't convert the current loans (that are not being refinanced) to P&I and bump the rate up to the assessment rate. I have a client with several property loans on IO at decent interest rates but doesn't service on new investment property because the current loans are assessed at a much higher rate (over 7%). Liberty apparently use the actual repayments but this will be a construction loan and Liberty do not do construction.
Will it service with a 30% buffer on OFI debt? If so - the NAB group of lenders could work. Cheers Jamie
Thanks Jamie. He doesn't like NAB because they would not do cash out on one of his investment loans. He may have to kiss and make up. NAB are also one of the only lenders who will do 3 units on the one title.
If he doesn't like NAB, you could put it up to Advantage, possibly through a mortgage manager. It's still NAB money, but he wouldn't be dealing directly NAB. Servicing policies are essentially the same as NAB.
Agree with Pete - Advantedge may be a good fit if you have them on your panel. They have the same servicing calc as NAB Cheers Jamie
Give ABL a go - their new calculator is decent in todays environment and they do construction loans. Can go via a mortgage manager to.
OK.. a Liberty adviser... I would have assumed you would be across lender servicing calcs. as you should know, only Liberty ( to 80% ) and Qudos Bank take actuals ( but to 65% ) . P&N have stopped. Next best is Pepper. Actuals + 28% - to 85% LVR. But forget construction Then NAB. Actuals + 30% As Redom has said, ABL has a reasonable calc. 7.35% assesment rate but they dont calc remaining P&I term if you use I/O for 5 or 10 years, so it's a pretty decent calc for investors. But in a situation like this, your client really just needs to get over their NAB issue and be grateful you can get the money form them at all.
You don't want to use ABL directly - they do not do construction finance. Through any of the managers through their wholesale funds will be fine though. Speaking at a conference today with one of the ABL higher ups, their systems are in the process of being upgraded and should allow construction loans toward the end of this year. As others have mentioned - I'd be placing this through Advantedge by the sounds of it.
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