Refinancing to purchase new PPOR

Discussion in 'Loans & Mortgage Brokers' started by browntiges, 21st Jul, 2015.

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  1. browntiges

    browntiges Member

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    Hi all, this one might be for the brokers....

    Our current situation:

    5 IPs - financed under an IO loan for approx. $2m , approx $1.1m in equity
    PPOR - financed under a P&I loan for $580K, approx $1m in equity

    All finance is with ANZ (learning on this forum that is is not necessarily a good idea).

    What we'd like to do:

    Buy a new PPOR for $2.4m. The problem is that the new potential property has just been leased for 12 months, so this property would need to be purchased as an IP (I think) until we can live in it next year. The ANZ has said that our serviceability for a further IP is $700K, so we have a significant shortfall.

    Any tips/advice as to what we could do in terms of refinancing etc. to fund the purchase would be appreciated. We don't have LMI currently and would like to continue to avoid this if we can.
     
    browntiges, 21st Jul, 2015
    #1
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Easy - use another bank!

    Cheers

    Jamie
     
    Jamie Moore, 21st Jul, 2015
    #2
  3. Jess Peletier

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

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    ANZ is one of the most conservative lenders so it might be best to get some equity out, and use it as a deposit with another lender.

    Are your loans all cross collateralised?
     
    Jess Peletier, 21st Jul, 2015
    #3
  4. browntiges

    browntiges Member

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    Hi Jess, no cross-collateralisation of the properties. I'm keen to understand if another lender would finance this purchase, we are not wedded to the ANZ.
     
    browntiges, 21st Jul, 2015
    #4
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Of course another lender would consider it. It could be done as a main residence loan too with bigger discounts.
     
    Terry_w, 21st Jul, 2015
    #5
  6. Jess Peletier

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

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    They should, but we'd need to run servicing with all your details to be sure - $2.4M is a decent loan size :) There's a good chance another more generous lender will fund it.
     
    Jess Peletier, 21st Jul, 2015
    #6
  7. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    ANZ are assessing all your debt at P&I and a rate of 7% +

    A bank like Nab for instance would assess the debt at what it actually is plus 28%

    Others such as Firstmac will assess the debt at actual repayments (ie. with no buffer)

    The difference in borrowing capacity among the three will be massive.

    Cheers

    Jamie
     
    Jamie Moore, 21st Jul, 2015
    #7
  8. browntiges

    browntiges Member

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    Thanks all for your responses and advice...and if anyone is interested in assisting with the refinancing, we are looking for a good broker! ;)
     
    browntiges, 21st Jul, 2015
    #8
  9. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Nah - don't think anyone would want to help with a $2m deal :)

    Cheers

    Jamie
     
    Jamie Moore, 21st Jul, 2015
    #9
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