Most lenient lender

Discussion in 'Loans & Mortgage Brokers' started by Younginvestor2, 15th Aug, 2018.

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  1. Younginvestor2

    Younginvestor2 Well-Known Member

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    hi
    We are looking for a new PPOR. We applied for preapproval with bank of Melbourne and they only allow us to borrow $400k.
    We will like to borrow a bit more to buy into a better area. We know we can afford to repay because we will run into some money next year. Which lender is more lenient and will allow more lending? Or will a mortgage broker be best person to approach?
     
    Younginvestor2, 15th Aug, 2018
    #1
  2. Jess Peletier

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

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    If you're looking to squeeze out every last penny, definitely go to a broker - you'll fry your credit file in the search otherwise. :)
     
    Jess Peletier, 15th Aug, 2018
    #2
    thatbum likes this.
  3. Redom

    Redom Mortgage Broker Business Plus Member

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    Depending on your situation, you can expand your borrowing power in a few ways.

    With mainstream lenders, there's likely only a small differential between lender calculators. This may expand if you have unique factors to your situation (e.g. self employed, variable income sources, etc).

    If that doesn't work, explore the non-bank options. You could try Pepper who can do an 85% P&I no LMI loan and offer greater borrowing power. There's a few more non-bank options that go further still, but generally come at a cost (e.g. Liberty).
     
    Redom, 15th Aug, 2018
    #2
  4. Phantom

    Phantom Well-Known Member

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    The quickest way to find this out will be to see a broker who will have access to many lenders and their servicing calculators. Depending on your specific financial situation, you may well have more options than you think right now. A good broker should be able to let you know quickly.

    As Redom said, a non-bank might worth considering - at least in the short term. When you come across that money you're expecting and you can reduce the loan amount, perhaps you can then refinance away. As always with non-banks, have an exit plan.
     
    Phantom, 15th Aug, 2018
    #3
  5. Lacrim

    Lacrim Well-Known Member

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    More importantly, which of the majors is the most lenient....or is that an oxymoron?
     
    Lacrim, 15th Aug, 2018
    #4
  6. hammer

    hammer Well-Known Member

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    Do you have credit cards? Car loans? They can really reduce your borrowing power...
     
    hammer, 15th Aug, 2018
    #5
  7. hammer

    hammer Well-Known Member

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    Do you have credit cards? Car loans? They can really reduce your borrowing power...
     
    hammer, 15th Aug, 2018
    #6
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    there is some spread

    but APG 223 ensures there isnt to much lean :)

    ta

    rolf
     
    Rolf Latham, 15th Aug, 2018
    #7
  9. Younginvestor2

    Younginvestor2 Well-Known Member

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    A few questions come to mind, hope someone can answer.
    If I borrow from a nonbank lender and it goes bankrupt, is my property at risk?
    And how much does mortgage insurance usually costs? Do I usually end up paying more interest using a broker assuming the broker will take a cut for the life of my loan?
     
    Younginvestor2, 15th Aug, 2018
    #8
  10. Trainee

    Trainee Well-Known Member

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    No your loan will be sold to another lender.

    Depends on lvr.

    No. Branches, staff and those branded cars cost money.
     
    Trainee, 15th Aug, 2018
    #9
  11. tobe

    tobe Well-Known Member

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    If your coming into money next year, buy next year.
     
    tobe, 16th Aug, 2018
    #10
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  12. Brady

    Brady Well-Known Member

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    Which could be a huge rate increase and not able to finance elsewhere..


    What are brokers driving? :) unmarked, thought that was police?
     
    Brady, 16th Aug, 2018
    #11
  13. Eric Wu

    Eric Wu Well-Known Member

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    Better to wait till you receive the "incoming" money, you would have a chance to buy a better home, and less stressed out.
     
    Eric Wu, 16th Aug, 2018
    #12
  14. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Agreed.

    Why rush? Better than overstretching yourself now.

    Sure - you could borrow more with third tier lenders with lower assessment rates (Liberty, etc) but you'll pay for it in rate.

    Cheers

    Jamie
     
    Jamie Moore, 16th Aug, 2018
    #13
    Eric Wu likes this.
  15. Jess Peletier

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

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    Mine is unmarked - means I can drive like a maniac without people realising it's me ;)
     
    Jess Peletier, 16th Aug, 2018
    #14
    Brady likes this.
  16. tobe

    tobe Well-Known Member

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    I ride my bike. Costs an extra donut each day. Which I can’t claim.
     
    tobe, 16th Aug, 2018
    #15
    158 likes this.
  17. sash

    sash Well-Known Member

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    A lot of the easiest lenders do not use broker channels...

    Try loans.com.au ..RAMS....Liberty....Pepper Money...Mortgage House....Bluestone...be careful as some of them will put up rates faster then others (i.e Liberty...Pepper...Bluestone)
     
    sash, 16th Aug, 2018
    #16
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  18. Eric Wu

    Eric Wu Well-Known Member

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    hahaha, that was the reason why I don't want to mark my car. :D:D:p
     
    Eric Wu, 16th Aug, 2018
    #17
  19. sash

    sash Well-Known Member

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    Is that the Maserati with the Number Plate

    "Mr Wu " .....:p
     
    sash, 16th Aug, 2018
    #18
  20. Eric Wu

    Eric Wu Well-Known Member

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    :D:D:D:D, one day ........
     
    Eric Wu, 16th Aug, 2018
    #19
  21. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    As an aside, unless you have some Interest only lending, ideally with rental income, the real advance of non APRA controlled lenders is typically less then 20 % over what say someone like BOM/STG will lend, unless you have an income make up that is unusual.

    A "bit more" with some clients means 50 % more :)

    Where Non banks that are divested from the APRA APG shine is where someone has abunch of IO debt, because some of these Non APRA lenders calculate IO on the existing debt of other lenders.

    A cautionary fairy tale some will say, but when you go and "try" the other lenders suggested, make sure they actually present you with information that proves that your serviceability with their credit will fly before you make a formal application......otherwise you may inhibit further lending due to a damaged credit file.


    ta
    rolf
     
    Rolf Latham, 17th Aug, 2018
    #20
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