Only 10% deposit now says Commbank

Discussion in 'Loans & Mortgage Brokers' 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
    Darlinghurst Boy, 5th Jan, 2016
    #1
  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.
     
    Hodor, 5th Jan, 2016
    #2
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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
    Darlinghurst Boy, 5th Jan, 2016
    #3
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    CBA never restricted IP loans to 80%

    Cheers

    Jamie
     
    Jamie Moore, 5th Jan, 2016
    #4
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  5. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus 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.
     
    Jess Peletier, 5th Jan, 2016
    #5
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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
     
    bob shovel, 5th Jan, 2016
    #6
  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
     
    Rolf Latham, 5th Jan, 2016
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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...
     
    Azazel, 5th Jan, 2016
    #8
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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%
     
    Darlinghurst Boy, 5th Jan, 2016
    #9
  10. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat 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.
     
    JacM, 5th Jan, 2016
    #10
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  11. Jess Peletier

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

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    Cba don't restrict postcodes. They use 80% gross rent for servicing.
     
    Jess Peletier, 5th Jan, 2016
    #11
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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
     
    Rolf Latham, 5th Jan, 2016
    #12
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  13. Big Daddy

    Big Daddy Well-Known Member

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    I think this chart may help
     

    Attached Files:

    Big Daddy, 5th Jan, 2016
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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?
     
    luckystar, 5th Jan, 2016
    #14
  15. Heinz57

    Heinz57 Well-Known Member

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    Even more cryptic in 2016
     
    Heinz57, 5th Jan, 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
     
    Rolf Latham, 5th Jan, 2016
    #16
  17. tobe

    tobe Well-Known Member

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    ##12% plus stamp duty and other costs##
     
    tobe, 5th Jan, 2016
    #17
  18. LifesGood

    LifesGood Well-Known 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?
     
    LifesGood, 5th Jan, 2016
    #18
  19. bob shovel

    bob shovel Well-Known Member

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    I'm still re-reading it! o_O I'll get there
     
    bob shovel, 5th Jan, 2016
    #19
  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
     
    Drgonzo, 6th Jan, 2016
    #20
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