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Only 10% deposit now says Commbank

Discussion in 'Property Finance' started by Darlinghurst Boy, 5th Jan, 2016.

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  1. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Rang up the Commonwealth Bank home loan number last night.
    I told them I wanted to borrow some money to buy an IP.

    The home loan person told me no need for 20% deposit anymore minumum is 10% for an IP.

    Has anyone heard of this ? Probaly means I will have to pay mortgage insurance ?
     
    Last edited by a moderator: 5th Jan, 2016
  2. Hodor

    Hodor Well-Known Member

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    Wouldn't surprise me with LMI, I'd be more surprised if they didn't offer 90% with LMI now.

    You like doing things the hard way don't you? A broker saves all the headache of keeping up with what the banks are doing, or even needing to speak with one.
     
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  3. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    a broker will take more time...Commbank has all my details.. A broker will require me to go into their office ... Meet with them... Hand iver all paperwork etc etc when i can just call the Bank.
    Last time I used a broker (Smartline Home loans) the lady was most rude and arrogant.

    I was going to borrow a lot from Smartline but not with bad service .
     
    Last edited by a moderator: 5th Jan, 2016
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    CBA never restricted IP loans to 80%

    Cheers

    Jamie
     
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  5. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    It's True that you can use comm bank with 10%, but what she didn't mention is that you won't be able to use neg gearing which makes servicing much harder.
     
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  6. bob shovel

    bob shovel Well-Known Member

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    How does cba work out pos geared IP's? Do they go off gross yield, or their own calcs to get a net yield, do they also factor in property location? I know banks are restricting certain postcodes
     
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    I dont know what I dont know is one of my favourite learnings

    But even better is when i learnt that when I think I know what I didnt know, confusing assumption with knowledge/experience

    ta
    rolf
     
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  8. Azazel

    Azazel Well-Known Member

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    Have only met one of my brokers in person, 1 time at an unrelated event.
    Interesting that some people learn from these forums but others...
     
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  9. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    As Terry W says... Put less of your money as possible... So I may inquire again into this 10%
     
  10. JacM

    JacM VIC Buyer's Agent Business Member

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    Not necessarily true. I noticed for instance that @Terry_w mentioned the other day he has structured his licensing in a manner that does not require him to meet with clients in person.

    Don't assume that one rude person at Smartline means alll brokers are rude.

    Time is money. It takes time to acquire money and the key is to hang onto it. It is a shame you won't let a good broker help you find the most appropriate deal that helps you hang onto your money via good interest rates etc rather than pay a rate at the CBA just because they already have your details.
     
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  11. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Cba don't restrict postcodes. They use 80% gross rent for servicing.
     
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  12. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    typically, best bang for buck is 88 + add the LMI premium

    This will aloso provide for a better credit score, and can get you around some of the dodgy places where they wont do deals above 90 % lvr ................

    ta
    rolf
     
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  13. Big Daddy

    Big Daddy Well-Known Member

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    I think this chart may help
     

    Attached Files:

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  14. luckystar

    luckystar Well-Known Member

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    So is this a deposit of 12% cash and additional lmi cash on top? Or is lmi built into the loan?
     
  15. Heinz57

    Heinz57 Well-Known Member

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    Even more cryptic in 2016
     
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  16. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    12 % deposit and you can then add the LMI premium to the loan

    ta

    rolf
     
  17. tobe

    tobe Well-Known Member

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    ##12% plus stamp duty and other costs##
     
  18. LifesGood

    LifesGood Home Building & Development Consultant Business Member

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    In the past, QBE generally had much lower LMI premiums than Genworth. Has this changed or is this chart more of a rough guide?
     
  19. bob shovel

    bob shovel Well-Known Member

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    I'm still re-reading it! o_O I'll get there
     
  20. Drgonzo

    Drgonzo Well-Known Member

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    Given where interest rates are depending on the property I would argue negative gearing isn't much of an opportunity anyway unless you have access to depreciation