Highest LVR possible in today’s climate?

Discussion in 'Loans & Mortgage Brokers' started by andrewstack, 8th Jan, 2021.

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  1. andrewstack

    andrewstack New Member

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    What’s the highest available? 90% seems to be about the highest I can find. Looking to reduce my upfront capital expenses. I know in the past 95-105% LVR were possible but I think that ship has sailed?

    Any input would be appreciated.

    Thanks
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    95% generally
     
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  3. Lindsay_W

    Lindsay_W Well-Known Member

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    Investment or Owner Occupied?
    105% still possible if willing to offer additional security and cross secure...
     
  4. MJS1034

    MJS1034 Well-Known Member

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    Bank Australia still do 99% inclusive of LMI for first home buyers with strong servicing.
     
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  5. Monopoly Man in Top Hat

    Monopoly Man in Top Hat Well-Known Member

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    Do you have a contact at Bank Australia? I would like to discuss with them.
     
  6. MJS1034

    MJS1034 Well-Known Member

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    PM me
     
  7. Lindsay_W

    Lindsay_W Well-Known Member

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    Can you post a link to the product ?
    I have Bank Australia on my panel of lenders and they've advised max LVR they can offer is 95% so I'm keen to know what product you're talking about.
     
  8. MJS1034

    MJS1034 Well-Known Member

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    It’s not advertised anywhere. Speak to your BDM. Borrower must be first home buyer, Australian citizen and must pass servicing by over $1k month. Had one only 3 weeks ago at 98%
     
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  9. Lindsay_W

    Lindsay_W Well-Known Member

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    Sounds like a good one for those FHB on good income, thanks for the tip off
     
  10. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    ANZ will do uo to 97% owner occupied if youre an existing customer.
     
  11. Timwest

    Timwest Well-Known Member

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    If getting a 95% LVR would LMI be lumped onto the loan?

    For example, upfront on a $1 million loan;

    5% deposit = ~$50,000
    Stamp duty = ~$40,000
    Legal = ~$3000
    Building inspection = ~$1000
    Setup = ~$1000
    LMI = 0 (~$30,000 lumped onto the loan)

    Total = ~$95,000

    Is this logic accurate?
     
  12. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    You'll need(might need depending on which bank) a bit more deposit as you need to be below a certain LVR.

    Your logic is correct, but your LVR is capitalised into the loan, therefore going above 95%, in this case you'll need more deposit to reduce it down to 95%lvr (example)
     
  13. Timwest

    Timwest Well-Known Member

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    I see, so you mean that since the LMI is capitalised onto the loan, the loan would go from $1,000,000 to $1,000,000 + LMI (~$30,000) = ~$1,030,000. Then to get 95% LVR of this, the deposit would go from $50,000 deposit to ~$51,500?
     
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  14. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Pretty much mate.
     
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  15. Cabricabri

    Cabricabri Well-Known Member

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    What’s the best interest rate in the market for a first home owner if opting for 95% and capitalising lmi?

    would it be around 3%?
     
  16. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Can be below that
     
    Last edited: 7th Mar, 2021
  17. Yana

    Yana Member

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    Hi Tony
    Will ANZ lend that amount against land ona refinance - currently on 35% lvr? Would you need to nominate a reason for the equity to be released?
     
  18. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    depending on the loan amount the LMI will take the lvr to 98 %

    Only very few lenders on our panel that will take that punt at mid to high 3s

    ta
    rolf
     
  19. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    You mean refinance cash out up to 97% ?
     
  20. Yana

    Yana Member

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    Yes