Best 90% LVR Loan Options

Discussion in 'Loans & Mortgage Brokers' started by Prosci, 11th Dec, 2018.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Prosci

    Prosci Member

    Joined:
    10th Dec, 2018
    Posts:
    9
    Location:
    Sydney, NSW
    Hi All,

    Long time lurker but first poster @ PC.

    Just wanted to get your thoughts re my current situation - purchased a PPOR in inner-SW of Sydney in 2016 for 650 K. We went for refinancing recently and OPETON returned with a value of the same amount as purchase price for the property!!! We are obviously gutted with the news and weighing our options. The Mortgage Broker is suggesting products with LMI (of around 13K) which we'd prefer not to get into. If we stick with our existing lender then we are looking at 4.XX% rates.

    We are looking for a P&I + Fixed + Offset product. Servicing the loan isn't an issue.

    I wanted to get your thoughts re couple of things:

    1. Recommendations for a 90% LVR product?
    2. Should we consider getting the property valued by a different valuer than OPETON?
    3. Anything we can do to avoid LMI?

    Any help be much appreciated.Thanks.
     
    Prosci, 11th Dec, 2018
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,653
    Location:
    Gold Coast (Australia Wide)
    Typically, first thing would be for us to do a valuer shop and see what options you have around value before going down the LMI route.

    Inner SW, can mean a lot of different things

    A red brick 60s build 2 bedda in Dulwhich Hill is a different vals animal than say a new one bed in Lakemba,

    if the primary focus is RATE, id also look hard at rate options with the current lender.

    As an aside, an active Debt recycle strategy will make the rate paid pretty much redundant. What lender are you with and why ?

    ta
    rolf
     
    Rolf Latham, 11th Dec, 2018
    #2
  3. Prosci

    Prosci Member

    Joined:
    10th Dec, 2018
    Posts:
    9
    Location:
    Sydney, NSW

    Ta Rolf.

    How can I do a 'value shop'?

    We have a 2+2+1 Apt in Campsie (I know ) which is approximately 5yrs old. Well planned by Frasers, not too dense.

    We have about 570k to pay on the loan.

    The primary goal at this stage would be to avoid LMI and a decent rate be a bonus.
     
    Prosci, 11th Dec, 2018
    #3
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,653
    Location:
    Gold Coast (Australia Wide)
    For most people we work with their number one focus is to build wealth, part of that is getting rid of the non deductible debt fast, and often rate is NOT a deciding factor - structure and what you do with your spare cash and future investments is. Does obviously depend on risk profile and resources etc .

    ta
    rolf
     
    Rolf Latham, 11th Dec, 2018
    #4
    Lindsay_W likes this.
  5. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    1,658
    Location:
    Sydney
    Did you pay LMI on the original loan? If yes then you should really be trying to re-use the LMI credit you have up your sleeve.

    If not then some lenders have desktop valuations which do generally come back favourably.

    Instead of looking at a fixed and offset product have you considered a combo loan of part fixed and part variable so that way you can utilise all the benefits of an offset and also the features of an offset facility.
     
    Shahin_Afarin, 11th Dec, 2018
    #5
  6. Redom

    Redom Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    4,658
    Location:
    Sydney (Australia Wide)
    Ask your broker to try and order a few valuations (desktop ideally) and go from there. In your case, the best valuation may determine the best lender for you. Marginal product/rate differences may be of second order preference to a higher val.
     
    Redom, 11th Dec, 2018
    #6
  7. Illusivedreams

    Illusivedreams Well-Known Member

    Joined:
    3rd Oct, 2017
    Posts:
    2,457
    Location:
    Sydney
    existing lender then we are looking at 4.XX% rates.



    Its not so bad? 4.xx If you were really bad you would be in the 5.x%
     
    Illusivedreams, 11th Dec, 2018
    #7
    tobe likes this.
  8. Prosci

    Prosci Member

    Joined:
    10th Dec, 2018
    Posts:
    9
    Location:
    Sydney, NSW
    Hi All,

    Thanks for sharing your thoughts/tips.

    Crisis averted as the current lender came to the party at a competitive rate.

    Reality check nonetheless for anyone who got into the market recently.

    Cheers
     
    Prosci, 11th Dec, 2018
    #8