Low Doc Loans

Discussion in 'Loans & Mortgage Brokers' started by MTR, 26th Feb, 2020.

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  1. beachgurl

    beachgurl Well-Known Member

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    Think it was 4.99. I sold not long after. I use them at a strategy to construct or purchase an uplift deal, not to retain a loan with them long term
     
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  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The fees can be frightening. Lender of last resort finance can have clauses like a fixed fee of 25k etc...It's a payday lender situation but they use names with Mr on their cards. Rates aren't too bad but the fees can make the comparison rate extortionate.

    Tip...SMSFs that are unrelated can offer these loans. Eg your solicitors Accountant etc SMSF . All documented and secured
     
    Last edited: 10th Apr, 2020
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Both the funds provider ( usually Mum and Dad investors) want a decent return on the higher risk, and the mortgage manager and broker need to make a buck too.

    Typically, these have a loan term run of 12 to 18 mths max with the end product sold or refinanced, so the CCR isnt a useful guide per se

    Not meant to be a Long term hold product either

    ta
    rolf
     
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  4. MTR

    MTR Well-Known Member

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    Best rate
    60% lvr is ok if trade off is better rate
    Accountant declaration
     
  5. MTR

    MTR Well-Known Member

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    Bump

    OK thought a good time to bring this up again


    Forget construction loan

    any good low docs..... @beachgurl mentioned Peppers at 2.99% good rate, catch 55% lvr. wonder can I access equity using this product

    I can do this, but any other product ????? at similar interest rate
     
  6. Terry_w

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

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    There are a few around. Resimac with a similar rate to 80%
     
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  7. beachgurl

    beachgurl Well-Known Member

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    In the other thread you mentioned 70%. 3.55% up to 70%. Ramps up a lot past 55%.
    If your accountant is ok with completing the declaration you have cheaper options available to you. Mine doesn't like them unfortunately.
     
    Last edited by a moderator: 24th May, 2021
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  8. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    Redzed - OO - 2.99% at 70% no risk / LMI fee.
    Resimac similar up to 80%.

    Depends on what you can provide and your business structure more than anything ie BAS, Bank statements, Accountants letter.

    Has loosened up in last 6 months I feel. With risk fees being cut and 1 form of income verification instead of 2 required.

    The accountant letters can be hard. Always a few gotchas in them. There are less onerous ones but rates higher
     
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  9. MTR

    MTR Well-Known Member

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    Thx, very helpful
     
  10. MTR

    MTR Well-Known Member

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    Heard its going to get easier in future, they want our business...... go figure, just another day in paradise:)
     
  11. MTR

    MTR Well-Known Member

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    Fingers crossed I can still go full doc? But if not, there will be no choice I will probably have to wear the higher interest rates

    Damn I miss those low/no docs prior to GFC.
     
  12. Maree McMahon

    Maree McMahon New Member

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    Hi Richard I need to obtain funding for 80%lvr on land at Macksville NSW 2447 PP $122000. Did you have private funders for this please that you could recommend Need for 1 year.
     
  13. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    That was an awesome product, did my last one circa early 2018 and then they changed the parameters and canned it all together shortly after.
     
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  14. David Hui

    David Hui Well-Known Member

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    I work with Richard at ASCF and we are a Private lender. In saying that unlikely we would do 80% on a $122K purchase. Would need more information to properly assess the application.
     
  15. MTR

    MTR Well-Known Member

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    I have heard today low doc product is very competitive today, they want our business

    Anyone know does Redzed accept accountants letter only??
     
  16. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Sounds like the same lodoc product BMM is offering atm and yes it's accountant's letter only.
     
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  17. MTR

    MTR Well-Known Member

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    Thank you

    Never heard of BMM
    it’s good news for investors
     
  18. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Better Mortgage Manager - been around a while, QLD solutions-based lender, pretty sure RedZed and Resimac repackage the same product they are offering.
     
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  19. beachgurl

    beachgurl Well-Known Member

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    BMM is likely offering the Redzed product. I wrote a few thru them before Redzed came on my panel
     
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  20. MTR

    MTR Well-Known Member

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    Anyone heard of a new low doc lender …. Rate City????? I think this could be wrong???


    Anyway, would be interested in any updates anyone may have on the low doc lenders on market today????
     

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