Join Australia's most dynamic and respected property investment community

OO loans - reduced LMI competition

Discussion in 'Property Finance' started by SaberX, 14th Aug, 2015.

  1. SaberX

    SaberX Well-Known Member

    Joined:
    29th Jun, 2015
    Posts:
    197
    Location:
    WA
    Hi all.

    Just wondering if any brokerrs or individuals were havinf luck with westpac or othet institutions in negotiating to get reduced LMI for an owner occupied construction building loan as westpac had done with their 85% lmi change.

    Im looking to get titles and settle around oct and i know westpac requires settlement prior to that. Wondering if anyones been able to extend the applicable months or get a similar deal with another decent financial institution.

    The savings of 5% equity means a good 25k deposit for my second property in the portfolio, so strategically it'd be really good to save on this.

    Once one lives in it for 6 months plus is there technically any issues or way to be pinged of then changinf to a rental given originally you applied and met owner occupied conditions? Or is this just one of those 'grey areas'?

    Thanks!
     
  2. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    641
    Location:
    Sydney
    The no LMI is only for new applications not existing. What's your profession?
     
  3. SaberX

    SaberX Well-Known Member

    Joined:
    29th Jun, 2015
    Posts:
    197
    Location:
    WA
    This would be my first loan. Land purchase plus new building. So a new loan. So applying for fhb grants and stamp duty exemptions... Perhaps as things change i will move out and rent it out after 6 months... ;)

    Accounting/finance.

    Just trying to keep my options open for my second property as things cool down in WA further as a time to begin my portfolio journey, so savin on LMI but also also equity would be preferably. Hence the westpac one sounds good, bar previously available only if you settle by sept right? Not sure how the rest of their financing/flexibility and as a lender to building an eventual property portfolio theyre advisable... But surely others competing with similar deals
    deals?

    Loan would be for under 500k after at least 10% deposit.
     
  4. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    641
    Location:
    Sydney
    Since its a new loan you would be entitled to 85% no LMI and rate of 4.20% (plus IO 15 years).

    Re your profession - if you hold either a CA, CPA, CFA or FIAA and have an income of $120k you would be eligible for 90% no LMI with both Westpac and St George.
     
  5. euro73

    euro73 Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    1,449
    Location:
    Sydney
  6. SaberX

    SaberX Well-Known Member

    Joined:
    29th Jun, 2015
    Posts:
    197
    Location:
    WA
    Hi shahin i was enquiring about competing institutions as opposed to westpac. Or whether anyone had managed to negotiate reduce Lmi for westpac where like me land settlement would occur after sept. Which is when i seem to recall the 85% no LMI for westpac stipulated.

    Unfortunately i dont meet the 120k threshold for accounting... (maybe one day!)
     
  7. SaberX

    SaberX Well-Known Member

    Joined:
    29th Jun, 2015
    Posts:
    197
    Location:
    WA
    Sorryr wrote that late this morning on my way to bed.

    SO basically what I was asking of brokers is is there no lenders out there currently competing with Westpac's 85% no LMI offer, except offering settlement for periods up to October/November??

    Or if there was anyone here who had successfully negotiated Westpac to extend the settlement period applicable for the 85% no LMI promotion past September? Or whenever it was applicable from....
     
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,174
    Location:
    Gold Coast
    no mainstreams have interest right now...........

    ta
    rolf
     
  9. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    641
    Location:
    Sydney
    For the sake of clarity - the $120k ($150k for NSW, QLD and VIC) income requirement can include rental income.