Most lenient lender

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

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  1. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    Sydney North Shore and Norther beaches
    yes, homeloans ltd
     
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Most brokers have access to Resi, either directly or via Homeloans Ltd.
     
  3. Redom

    Redom Mortgage Broker Business Plus Member

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    Resi sell via brokers, direct and provide cheaper funding lines to some online providers. They're quite 'lenient' in terms of servicing and have some upside when at the margins. Not specifically for big investors with large debt sizes as their assessment rate is similar, but do have a few nice upsides to their calculators to stretch servicing a bit for those with lower budget households, etc.
     
  4. FXD

    FXD Well-Known Member

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    30th Aug, 2018
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    Location:
    Melbourne, Victoria
    Hi experts,

    Is it true that regardless of how aggressive or lenient a lender may be, eventually even they will
    get to the point of enough (lending) is enough?

    I've been to some educational seminar where presenters suggest that brick wall is typical of
    lenders retail lending policy. And to go beyond that, investors need to access additional finance
    via "business" lending or the likes.

    Is this a factual truth (at least one such lender will tick the box for me) or just some make up
    fairytale to impress the event attendees? If it's the fact, how can I gain access to it?

    Thanks,
    FXD
     
  5. tobe

    tobe Well-Known Member

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    There’s some truth to it. Business lending isn’t governed by the same consumer law, so lenders in that space can be less conservative in their capacity calculations. There’s low doc options, or lease doc where lending is solely determined on the yield of the lease rather than all your income and expenses.

    The interest rates are higher and not being governed by consumer law means they don’t have the same hoops to jump thru to default borrowers...

    You’d need a company to lend to, and so lose CGT discounts and negative gearing changes. You’ll also need large deposits, 30-40% generally as opposed to 10-20%.

    It’s more for commercial and retail properties, so you would also need some idea of how these diferent markets work. It is possible to do resi Finance, but it’s usually short term resi development rather than buy and hold.