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How soon after new home loan can we look another?

Discussion in 'Property Finance' started by user8519, 11th Jan, 2016.

  1. user8519

    user8519 Member

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    Illawarra
    Hi all,

    We are about to settle on a property in the low $500k price. The loan/property (PPOR) has been put under the wife's name 95% LVR with no mortgage insurance (health professional). The thing is I have been required to be her guarantor for the full amount (despite only applying for half).

    Our plan was to purchase 2 cheaper homes instead of 1 overpriced one.
    My question is how soon after we settle can we start looking at a second property?
    Would me being a guarantor effectively mean I have a $500k loan under my name as well (as opposed to 250k if we were joint)?

    Some extra info:
    We both earn ~$100k each. After settlement we will still have approx $80k in savings.
    We would be looking at a IP around $430k with 5% rental return


    Thanks!
     
    Last edited: 11th Jan, 2016
    Taku Ekanayake likes this.
  2. Redom

    Redom Mortgage Broker Business Member

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    Heya,

    You can go again straight away - no need to wait (unless there's specific bank policies with the lender you're with).

    Some lenders require the home to be rented out which can cause a delay (Homeloans) - but most will accept an appraisal.

    You'll need to disclose debts that your guarantor on. To utilise both your incomes for borrowing capacity assessments in purchasing property, you'll both need to go on the loan anyway. May be worth investigating whether it makes sense to purchase assets in individual names with individual loans before moving to a joint approach (higher servicing).

    On 100k each, purchasing your 2nd investment, your numbers should be fine, but would need a more thorough assessment of income/expenses (e.g. how much do you rent for, other debts, etc).

    Things to be careful of:
    • If you go to the same lender - make sure they don't cross securitise both loans.
    • No dramas going to the same lender, just make sure its set up correctly.
    • Ask for pricing on both loans - higher loan amount may get you a bigger discount depending on the lender.
    Which lender are you with? Not many do 95er LMI free loans.

    Cheers,
    Redom
     
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  3. user8519

    user8519 Member

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    Hi Redom, that's great news!

    We went with Westpac for this one but open to going to another lender. Another 95% LVR LMI free loan would be great if we can get it under my name with a different lender?
     
  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    WBC did that? Interesting.

    BoQ are the only ones I knew of that offered something similar through their non-broker channel. WBC normally only go to 90% no LMI as far as I'm aware, unless you got a personal loan for the additonal 5% - which is how BoQ do it.
     
  5. user8519

    user8519 Member

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    Hi Jess, yes but probably has something to do with our profession specific deal...
     
  6. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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  7. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Had no idea that you can get 95% with no LMI!

    Is WBC and BoQ the only lenders that do this?
    I'm not a doctor. I'm a sales professional - does this rule me out?


    Cheers,

    Taku
     
  8. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    There's nothing preventing you from going again now.

    That level of savings should cover off a 10% deposit plus costs - and there's quite a few lenders that would consider 90% no lmi for medical pros.

    Not sure if I'd be going with the same lender for a 90% lend just after taking out a 95% lend - but that's just me, others might not have an issue.

    Also - make sure you keep some sort of cash buffer too.

    Cheers

    Jamie
     
  9. Greyghost

    Greyghost Well-Known Member

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    Yep.
    Medical only

    However BOQ Specialise do it for CPA or CA qualified Accountants also
     
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  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    95 % with no LMI is a good score, and not normal for a big 4 lender

    I would not go back to WBC to try and get another 95 er, because they may claw their mistake back : )

    ta
    rolf
     
  11. York

    York Finance Broker Business Member

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    Also subject to minimum income requirements. :)
     
  12. Greyghost

    Greyghost Well-Known Member

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    Regarding medico sector, sure.

    Regarding accounting:
    Nope.
    BOQ specialists accountants no LMI deal is not subject to any minimum requirements.
    Just:
    Qualified
    Obviously pass servicing
     
  13. York

    York Finance Broker Business Member

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    Yep...and 100% for OO.