Financing PPOR, is this the best option available

G'day Everyone

I'd like some advice from experienced forumites here. We're buying a PPOR in South of Perth and getting following deal.

Keeping the Investment property and looking to buy PPOR at $1,250,000 is possible.
At the moment we can borrow upto $1,050,000 but I'd like to see if another lender would lend more.

We make $120K & $115K annually (Gross)
Investment property Valued at $600K, owing $383K, Rental income $470/week (gross)
Cash available - $44K in savings ac
HELP debt paying off $300/fortnight
Personal loan of $29K, owning $15K
No other debt at all, no CC

I've been offered:

• ANZ 1 year fixed rate PPR @ 2.09%:

• ANZ 2 year fixed rate PPR @ 1.99%

Thank you very much in advance.

 

G'day Sarob,

What does best mean? e.g. there are lenders that will provide better borrowing capacity than ANZ, there are lenders that will provide better rates than ANZ, etc. You'd need to work through all the specifics to identify which options work for your situation.

Also, curious as to why purely fixed loan against PPR?

 

Hi Morgs
I'm looking to borrow more than $1,050,000, hopefully $1250,000 with the existing deposit and equity i have. So looking for another lender who'd lend more than ANZ.

I dont know how to edit the topic of the thread. I'd change it to "Looking to borrow from another lender"

Fixed IR on PPR is just whats been offered to us. No personal preference there.

 

Who/why did they offer the fixed only structure? At a principal level, it'd be prudent to consider at the very least having a split fixed/variable product so you can pay down the owner occupied debt as quickly as possible (whilst still having the low cost fixed split in the mix).

It depends on nature of your income and the liabilities but you might find more out of the likes of investor friendly lenders e.g. Firstmac. I'd also explore the equity piece to see how far this will take you and what you need, and if there is scope to pay out HECS as this tends to boost borrowing capacity substantially.

 

ANZ are not very generous with servicing so there may be other lenders out there that would lend you more. Talk to Morgs who is a broker and might be able to help out.

 

Other major lenders should be able to give you a little more.

Then followed by lenders such as firstmac, pepper, Liberty and beyond bank which was a suprise to me.

I assume you went to the bank directly ?

 

Thanks Morgs
So i've now got a split fixed/variable structure for loan.
Without changing anything else i should be able to borrow what we want.
Paying down HECS isnt making any difference.

 

Thanks Tony
I'm exploring other major lenders. Wouldn't chase the 2nd tier lenders as i have no experience in dealing with them and would like to stick to what most people choose until i gain bit more experience.

 

Rolf
Just need to borrow $1.25M but i can only get $1.15M at the moment with existing liabilities and equity.

 

Thanks Terry
We're taking a proposal to ANZ to see if they can match. If not we'll go with one of the other majors.
I'd prefer to deal with a broker local in Perth who i can go and meet face to face. No offence to anyone here. I do appreciate everyone's comments and help.

 

I would suggest double checking this - can make a dramatic difference to servicing

HELP, TSL and SFSS repayment thresholds and rates

 

Okay... finally lodged the application yesterday

So i've paid off the $15K personal loan, cancelled one CC and reduced other to $1K.
HELP debt payoff will help with borrowing but didnt need to so didnt bother.
PPOR - $750K fixed, $146K Vari
Investment - $446K Variable (will be selling shortly so didnt fix.

Is this standard sort of deal???

 

You could have got this structure anywhere to be honest.

What do you mean by "standard sort of deal"?

 

Sounds like you didn't buy the PPOR for $1.25M then?
How much did you end up spending?
Are the properties cross secured?

 

Got a really good deal (IMO) for even $1m...
Properties aren't cross secured. Ive been advised it's better to go with two different banks...

Once it's all settled, hopefully in a month or so i will sell the investment and look at buying something more suitable to our situation.

 

Yes this is true, usually when you go direct to bank they want to cross secure them

 

I've just been advised that the ANZ will pick up our application for assessment on 11/11/21.
We submitted it 20/10/21 and i've got until 22/11/21.

+ Am i cutting it too close.
+ Is there a backlog of applications to be assessed with ANZ thats causing delays.

I'd appreciate your response

 

Speak to your banker, that's what they're paid for.

You've got until the 22nd of November for what? Settlement or Finance due? If settlement then yes it's cutting it fine, and your banker should be looking after this for you so there's no delay to settlement.

ANZ processing times are at 6 business days for simple PAYG no LMI deals, so are you paying LMI or are you self employed? PAYG deals with LMI are taking 14 business days

 

22/11 is finance due date.
I'm PAYG but paying LMI.