Attempting to find lender

I'm attempting to refinance an IP mortgage. It's currently IO and just over 5%. LVR under 30%, probably closer to 25%. PPOR all mine. No debts, one credit card paid every month, low limit. Good record at Equifax.

There's a few challenges. All income is from investing and a pension from my super fund. The rent is about 1.8X my annual expenditure, excluding property costs. Dividends and the pension are each what I spend a year, so I save a year or more of spending each year, a very long-term savings pattern. Lenders want to discount all my income. One lender said that I would be unable to repay their mortgage even though it's a lower rate than I currently pay, will lend me 75% of what I am very comfortably managing now.

To make matters interesting, all the comparison websites I have seen make no provision for the ongoing rate. They cite the honeymoon rate, which goes up after a few months. One genius lender was advised that it was for an IP and sent me information about a PPOR mortgage. IP rates are 50-100 basis points higher. Another one had big initial costs, discharge costs not cited, with the comparison and headline rate the same. This may be in breach.

I can easily manage P&I for the IP, but cannot find a suitable lender for my situation. Any ideas?

 

Who is the existing lender and have you tried negotiating with your existing lender?

 

Watson, oops, should have said. It's CUA and they will not budge.

 

A broker should be able to help you - as you’ve found, not all lenders are helpful in this space.

Have you applied with a few lenders already? It may be worth checking your credit file to be sure there’s not a handful of recent enquires that could make things more tricky again.

 

You need to use a broker who will know which lenders are ok with older borrowers and which lenders are happy to use pension and investment income. Many lenders want a reduced loan term for older borrowers and discount or won’t consider smsf income etc.

From what you have said there’s a couple of options that jump out at me, but it’s important to get specific advice from a broker.

 

I've contacted a few brokers, and none seem very interested. I think it's due to by income sources. I cite the savings pattern, not relevant to them. Also, lender rely on esitimates. I can show actual exoenditure for everything, but they will not use these figures, which go back decades. For a few years I had $1-200,000 in an offset, getting bigger over time due to dividends.

Every enquiry is with advice not to contact Equifax. I have an Equifax report from a few months ago, all good. There was no Equifax score, but in late 2013 the Veda score was in the mid-900 area. I suspect that I am at about 1000 now.

A broker that would look at real figures and take my savings capacity into account would be nice, but I cannot find any.

 

Contact one of the great brokers on here, if they can't help no one can

 

I'm in a similar situation. most of income from IP - Commercial.
The broker I've used told me the Liberty is the only lender providing loan based on a lease income. Their rate is a bit high. starting from 5.3% (IO for5 years).
It'll be interesting to see if op can find any other lender with a better rate since I'll try to refinance after 3 years.

 

lol....I love it when I call up lenders to ask about a product or promotion and they literally have no idea of that, or much else.

Makes you wonder how they select staff and operate other parts of business at times.