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Idea of current borrowing capacity?

Discussion in 'Property Finance' started by Toon, 30th Jul, 2015.

  1. Toon

    Toon Well-Known Member

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    Given the current NWO for investors & leaving aside serviceability, could anyone give me a rough guide as to how much I could borrow with an $80-85K deposit, both with & without LMI? Just got confirmation of contract going unconditional on a property I'm selling (after almost 6 nail-biting months :eek:) & settlement will be 14th August, so just trying to make sure I'm not getting my hopes up with the properties I've been shortlisting. Also, do any lenders still take OT into account for serviceability?
     
  2. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    You will need to provide a lot more info for anyone to give you even close to a ballpark. Income, expenses, household makeup etc..

    Or, chat to your broker. They'll be able to help with an accurate answer based on your info :)
     
  3. Toon

    Toon Well-Known Member

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    Thanks Steven, I'm trying to narrow down potential brokers from PC as we speak - so many to choose from! I just thought that until I get the cold hard cash it would be premature to try and get a formal assessment.

    My question probably wasn't very well worded or thought out as I had only just got off the phone from my conveyancer letting me know the conditions for the contract to go ahead had finally been met and I got a bit overexcited.

    I guess what I'm really asking is whether anyone is still going to 88-90% LVR w/o LMI & if so, do these particular lenders have generous or nasty servicing calculators?
     
  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Firstmac still go to 90% incl LMI, they're one of the most generous. NAB are pretty good still too.

    Based on that deposit and assuming you're not buying in VIctoria, you could purchase up to around $480k (12% deposit, $3k costs and stamp duty.)
     
  5. Toon

    Toon Well-Known Member

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    Thanks Jess, :( a bit disappointing. I thought I would have been able to go a fair bit higher than that on 90% LVR. Would be in Qld.
     
  6. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Nab group are still relatively generous and will go up to 90% inc of LMI - so that's nab broker and Choicelend (advantedge).

    Firstmac as Jess mentioned - possibly homeloans too.

    In terms of LVR - general rule these days is to take out an 88% lend and capitalise LMI on top. That's about the max you can expect from those still doing higher LVR deals.
     
  7. Toon

    Toon Well-Known Member

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    Thanks Jamie - so $700K purchase price is off the table :(
     
  8. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Stamp duty is the killer - its around $16500. :( You can prob go a little higher, around $500k with $80k. It's rough and dirty but that's the ball park.

    You might be able to go for a higher lend depending on the rest of your circumstances, CBA still go up to 95% inclusive but servicing is harder. Just depends on everything else you have going on.
     
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  9. Toon

    Toon Well-Known Member

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    Thanks Jess - how does CBA treat expected rental returns & existing PPOR repayments?
     
  10. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    CBA cap rental yeild @ 6%, and treat existing at actual rate P&I with a loading - 20% or thereabouts. They are still about middle of the road. Over 90% LVR they won't use negative gearing which can make things difficult.
     
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  11. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Hey Toon

    Best bet is to hit up Jess - she's given some great advice. She'll be able to work out what your max borrowing is going to be.

    Cheers

    Jamie
     
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  12. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Toon likes this.