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Owner Occupier loans

Discussion in 'Property Finance' started by B-Mac, 7th Dec, 2015.

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  1. B-Mac

    B-Mac Well-Known Member

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    Sydney
    Whats the max LVR on O/O loans these days?

    Also, are the serviceability calculations the same as investment loans (P&i at 7% etc)?

    I want to purchase more properties but don't want to wait years for CG/savings. My income will increase significantly over the next 2-5 years so thinking i do a series of PPOR upgrades in Sydney (reno & refinance).
     
  2. Redom

    Redom Mortgage Broker Business Member

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    Sydney (West) and Canberra
    Serviceability assessment rates are reasonably similar whether its investment or O/O - there are slight differences depending on the lender (e.g. i think CBA/ANZ have an 0.27% difference in assessment benchmarks used).

    Also from a servicing point of view, you can't include any rental income, so it may impact servicing based on income differences associated with purchasing an investment v O/O.

    Major difference would be the deposit required - you can generally get higher LVRs with more lenders (there hasn't been a cut back on this - 95er loans are still doable). Note that LMI gets very dear above 90-92%, often the cost doesn't make much sense - particularly for purchases that are reasonably expensive.

    Cheers,
    Redom
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    95 % lend with no limit to the LMI premium cap.......... but good luck getting one through

    ta
    rolf
     
  4. JohnPropChat

    JohnPropChat Well-Known Member

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    Perth
    Probably easier for FHB loans compared to OO.

    Which banks are doing 95%+LMI cap for OO? PPOR upgrades seems to be the only way to keep buying in post-APRA world.
     
  5. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    BoQ are the only ones still doing the full cap at that level I believe. But don't use them if you're in a rush for approval. :eek: Almost 2 weeks and counting.
     
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  6. tobe

    tobe Well-Known Member

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    BankWest.... Rams to 98.5.
     
  7. B-Mac

    B-Mac Well-Known Member

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    Is this including capitalized LMI?
     
  8. Marty McDonald

    Marty McDonald Mortgage broker

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    Sydney North Shore and Norther beaches
    Yes incl the LMI. So 95% + LMI but cant exceed 98% for Bankwest and 98.5% Rams. If the LMI is more than the 3% or 3.5% (likely for higher loan amounts) you have to pull back the base ratio to 94% etc.

    Bankwest pulled back to 98% about 2 weeks ago not that I ever use them.
     
  9. tobe

    tobe Well-Known Member

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    Liberty is still capping LMI too I'm pretty sure.