Only 10% deposit now says Commbank

Discussion in 'Loans & Mortgage Brokers' started by Darlinghurst Boy, 5th Jan, 2016.

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  1. Drgonzo

    Drgonzo Well-Known Member

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    I just went through Westpac for a construction loan and they did 90 and capitalised the LMI
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    as will man
    as will many other lenders.............

    Note your was obviously a PPOR loan as well

    ta
    rolf
     
  3. tobe

    tobe Well-Known Member

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    Indeed, but this is referring to using negative gearing in the borrowing calculator. It can make a huge difference depending on portfolio size and income levels as to how much you can borrow.
     
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  4. Azazel

    Azazel Well-Known Member

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    There's a doppelganger in here!
     
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  5. Drgonzo

    Drgonzo Well-Known Member

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    They were indifferent to the purpose of the loan but yes its owner occupied.
     
  6. LifesGood

    LifesGood Well-Known Member

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  7. LifesGood

    LifesGood Well-Known Member

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    Is this really possible!? (Without the client identifying themselves in the bank or providing certified ID)
     
  8. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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  9. Pamela Palmqvist

    Pamela Palmqvist Active Member

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    CBA is 95% inc of LMI for investors and owner occupiers :)
     
  10. Johann_

    Johann_ Well-Known Member

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    Hi Darlinghusrt I think its 90% Including LMI
     
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  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    probably not indifferent per se since Ips are max 80 % lvr with wbc still

    ta
    rolf
     
  12. Serah

    Serah Well-Known Member

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    Hi Pamela, is it still available 95% inc LMI? I wonder what the interest rate would be?
     
  13. Azazel

    Azazel Well-Known Member

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    Of course.
    You provide appropriate ID and what not obviously.
     
  14. LifesGood

    LifesGood Well-Known Member

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    It's possible to NOT meet a client face to face?
     
  15. Jess Peletier

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

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    Yes it is - but it's very restrictive on servicing as discussed before - no neg gearing. Regarding interest rate, it won't be as competitive compared to what you'll get below 90% LVR. Pricing would depend on loan amount too.
     
  16. Serah

    Serah Well-Known Member

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    Thanks Jess
     
  17. Serah

    Serah Well-Known Member

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    I really want to know from the lending perspective on how they calculate whether the property is positive or negative CF to get the 95%. And once we get the preapproved of 95% + LMI + STAP DUTY what kind of rental return are they after? Is it the net yield or the gross yield?
     
  18. Jess Peletier

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

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    They don't care about positive or negative, they just look at your current commitments, income (including 80% of your rental income) and use that to see if you service. You can get a 95% lend regardless of the individual property's cashflow.

    The 95% is based on the property's valuation.

    Also, it's 95% lend inclusive of LMI, not plus. Stamp duty is something you need to contribute cash for, either through savings or equity in another property. You can't add it into the loan for the new property.
     
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  19. Serah

    Serah Well-Known Member

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    Thanks for clarifying my thought ☺
     
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  20. Azazel

    Azazel Well-Known Member

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    For sure.
    As I said earlier, I've never met any of the brokers I've used in person except once at an unrelated event.