How to save thousands on your mortgage

OK great...thanks for the heads up.

Will they lend at 88-90% LVR? Need more options around lenders..I need more diversity...the loan book has growing at 1-1.2m a year....

 

don't know, give them a call. I am at 80 LVR

 

OK will do..I am finding that a lot will go low at 80% or lower..but if you are acquiring with minimal deposits ...it ain't going to happen.

RAMS will do a 93.5% lend for me plus LMI capitalised.

 

Right.
I always go 80% LVR

 

OK...might be one of the factors.

Know some lenders offering 3.99% for 80% ...haven't tested them yet.

 

Most lenders align the fixed rate period with io term. Means when you roll out of the fixed rate you also have to start p and I repayments. Many lenders are moving to full assessment to roll back into io, so that's another potential risk factor, especially if your personal circumstances or the lending environment changes.

Consider rolling fixed loans. Fix one for 1 year, another for 2, 3 etc, so they aren't all expiring together.

 

Correct. The NRAS cash flow would allow for the properties to run comfortably at P&I as well - if that were ever required.

 

As in the main banks will soon only be only offering 5 year IO with no possibility of extending it or doing 10 years?

 

Going to talk to my broker about this this afternoon now, appreciate it!

 

W

Will people with IO already be affected aswell or only new loan contracts

 

No as in any bank ...one of things which is concerning APRA is that almost 3040% of FHB are taking IO only loans. Traditionally there was a safety net of going to IO if the repayments were too high no there is none. I have locked some 15 yr IO only periods...these are gold from my perspective.

 

The affect will only be present if you can't move to another bank to IO or the current banks will not extend IO. No one knows this but if you can mitigate risk via having a long IO only period..it provides good SANF.

 

At the very least, if an additional 5 years I/O is all you can get, concentrate on using the low interest rate environment likely to stay in place over the next 5 years to reduce debt wherever you can , so you have some buffers in place.

 

I fuse you cannot always have: rate, no LMI, LVR you want.

Opportunity cost calcs are vital prior to purchase.

As MTR said, more flexibility sub 80% lvr. Above that it's hard to have your cake and eat it! Haha

 

Actually....there are quite a few options around the 4.15-4.35% range for over 80%. This has only come evident in the last few weeks.

But in principal yes under 80% id cheaper.

 

I asked my MB to look for it, but cannot find a 4.15% for IP loan 80% lvr

 

MTR says AMP will 4.12% on $1.2m

SunCorp will do 3.99% fixed on 80% for 3 yrs.