How to grow a multi-million dollar portfolio on an average income in the new lending environment

Discussion in 'Loans & Mortgage Brokers' started by Redom, 13th Jul, 2015.

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  1. Elives

    Elives Well-Known Member

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    does firstmac do loans under 250k? and if so what is the variable interest rate?
     
    Elives, 13th Jul, 2015
    #21
  2. Redom

    Redom Mortgage Broker Business Plus Member

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    I just did one - i believe its 4.46%.
     
    Redom, 13th Jul, 2015
    #22
  3. HD_ACE

    HD_ACE Game-Changer

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    Can you elaborate on P+N please jess
    -Lvr for investor/ppor
    - mortgage insurer
    - cash out policy
    - IO policy
    - rates and discounts?
    - development options. 2/3 OOT?

    Thanks.
     
    HD_ACE, 13th Jul, 2015
    #23
  4. HUGH72

    HUGH72 Well-Known Member

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    Or going no further without using the old fashioned method -pay down debt.
     
    HUGH72, 13th Jul, 2015
    #24
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    tick tock

    as the last bastions of free enterprise :) get an increasing market share, they too will come under pressure. While not specifically APRA targetted, because APRA can only lean on those it regulates (ie deposit taking institutions -I think), the once no no second and 3rd tier funding lines are becoming mainstream for the same reason they were shunned previously

    Change or Die perhaps

    ta
    olf
     
    Rolf Latham, 13th Jul, 2015
    #25
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  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    and there is lesson on that I expect

    ta
    rolf
     
    Rolf Latham, 13th Jul, 2015
    #26
  7. Elives

    Elives Well-Known Member

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    Is that with io and a offset account?

    Also am I right in believing I should max out my lending with the big 4 and then move over to first mac (etc)?
     
    Elives, 14th Jul, 2015
    #27
  8. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Very basic rule is to save the "generous" guys until last (these are lenders that calculate the repayments you have with other lenders at "actual" repayments rather than inflated repayments).

    However - there's only so much control you have. By the time you go to use the generous lenders - they may not be so generous any more....

    Cheers

    Jamie
     
    Jamie Moore, 14th Jul, 2015
    #28
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  9. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Hi HD,
    P&N use both insurers. cash out under 80% is okay, no verification usually needed. Over 80 depends on insurer.
    IO is 5 yrs, full application to extend, with new val for LMI.
    Rates are so-so to poor, especially for large loan sizes.
    They will do 2 OOT.
    Up to 95% for existing customers (account for 3 months) or 90% for non-existing. But LMI applies which isn't great for people with big portfolios - best to stay under 80%.
    They are really for people when they're running out of options elsewhere. That said, people are running out of options.
     
    Jess Peletier, 14th Jul, 2015
    #29
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  10. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Apparently a left-over policy from when WA was just a big ol' mining town...:rolleyes:
     
    Jess Peletier, 14th Jul, 2015
    #30
  11. DanW

    DanW Well-Known Member

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    Hi Jess,

    What does OOT mean?

    Thanks
     
    DanW, 14th Jul, 2015
    #31
  12. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    On One Title :)
     
    Jess Peletier, 14th Jul, 2015
    #32
  13. euro73

    euro73 Well-Known Member Business Member

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    Insert "thumbs up " here ^^^^^^^^^

    It really, really, really is time for people to pull any equity while they can, and refinance/renegotiate I/O periods as far out as they can - before they can do neither.... which probably wont be too far off.
     
    euro73, 14th Jul, 2015
    #33
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  14. euro73

    euro73 Well-Known Member Business Member

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    The only questions you should be asking now are ( in no particular order ) ... can I get the money? and can I get 5 years I/O or ( in Firstmac's case at least) 10 years I/O ? The answer to those questions is far more important than " whats the rate? " :)
     
    euro73, 14th Jul, 2015
    #34
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  15. DanW

    DanW Well-Known Member

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    It depends.. 5 years is such a long time. If it's anything like the GFC, the changes are likely short term and before most IO expires. Policies loosen and tighten all the time.

    Although definitely the rate is not the most important. Getting the money now for whatever investment reason is important though for returns.
     
    Last edited: 14th Jul, 2015
    DanW, 14th Jul, 2015
    #35
  16. Elives

    Elives Well-Known Member

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    can you get 4.46% with firstmac is that with io 5-10 yrs and a offset account?
     
    Elives, 15th Jul, 2015
    #36
  17. tobe

    tobe Well-Known Member

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    I'm pretty sure first mac doesn't have a true offset account, as its not a deposit taking institution. Its more like a redraw account.
     
    tobe, 15th Jul, 2015
    #37
  18. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    They call it a 'Redraw Offset Account' which sounds suspiciously like just redraw to me. However because I was suspicious, I confirmed with their BDM that it actually is a totally separate account and doesn't affect the loan balance at all. So it is a proper offset after all :)
     
    Jess Peletier, 15th Jul, 2015
    #38
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  19. miximitosis

    miximitosis Well-Known Member

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    Do they charge an upfront fee like LMI or is the risk factored into the 5.5% rate?
     
    miximitosis, 15th Jul, 2015
    #39
  20. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    It's an upfront fee capped into the loan.
     
    Jess Peletier, 15th Jul, 2015
    #40
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