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Rollcall of lenders still doing 90% LVR for investment?

Discussion in 'Property Finance' started by wombat777, 19th Aug, 2015.

  1. wombat777

    wombat777 Well-Known Member Premium Member

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    I'd like a rollcall of lenders that are still doing 90% LVR for investment and at what interest rate.

    I'm hoping to do 90% with no LMI via St George ( Chartered Engineer ), but interested to see what others might be available.
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    virtually all except a few minor exceptions.
     
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  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Few lenders still doing - off the top of my head:

    1. CBA
    2. NAB
    3. Firstmac
    4. Homeloans
    5. ME
    6. Macquarie
    7. RAMS

    However note that a lot are 90% including LMI capped.

    Professional package occupations (medico, accountants, engineers, poli's, celebs, etc) can all get 90% even with St George and Westpac.
     
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  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Easier to discuss lenders that aren't going above 80% for investors. The lenders that have restricted LVR weren't really on the radar for the investment market anyway. The challenge isn't LVR, it's lending policies which isn't something most people see or understand.
     
  5. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Do you mean the amount lenders are ready to lend?
     
  6. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Of course they're still lending to investors. They've simply raised the bar, they haven't stopped playing the game.

    That said, I may have found a way to completely ignore some of the policies that have been the causing peoples affordability to drop so dramatically. There's some things that can be done to extend peoples serviceability well beyond what lenders are currently allowing.
     
  7. WattleIdo

    WattleIdo renovating Premium Member

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    Like what?
     
  8. paper

    paper Well-Known Member

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    Hi Peter:
    If paid off the home loan (loan still open), want to buy a IP without much saving in the offset account, does the banks/lenders will rent the borrower 90-100% ? Or what will be the better strategy to ask from the banks?
    Please advice
     
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  9. Richard Taylor

    Richard Taylor Mortgage Broker & Brisbane Buyers Agent

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    Paper you would still be able to borrow 100% of the purchase price + acquisition costs it is merely a matter of how you structure it.

    Keep the loans separate. Use the PPOR to raise the deposits etc and then take out a 80-90% lvr on the individual IP itself.

    With no non deductible PPOR loan you could look at paying down some of the debt and starting to create an income from the property or take out an interest only loan with 100% offset account.

    Cheers


    Richard
     
  10. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Easy peasy - there's your funds for deposit/costs then.

    Cheers

    Jamie
     
  11. mcarthur

    mcarthur Well-Known Member

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    Tease! Can I buy a clue?
     
  12. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Not on a public forum.

    I haven't been able to fully map out a complete investment strategy yet, still gathering information. What I can say is that if you're already maxed out in serviceability, it won't work. It's more a strategy to almost indefinitely extend the affordability you've got.
     
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  13. mcarthur

    mcarthur Well-Known Member

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    Ok, I'm definitely interested. My broker has just said serviceability means next purchase is down to 400k or so instead of 800+. I was going to go into Brisbane again, but if there's particular things I need to structure/choose, then I need to know now as this next will max me out on serviceability - deposit isn't a problem!

    Can I contact you privately on this?
     
  14. paper

    paper Well-Known Member

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    Thanks Richard.
    The truth is the bank has asked me to cross my home loan to the 1st IP. With no experience, I did it until I find it out recently. I am not very happy for it. I have paid off 30% my IP (I+P=loan) but not much deposit left in the offset account.

    As I learn from the forum, I have to either pay off 70% asap or can I have 2nd thought to look for buy 2nd IP, say in 2 yrs. Which one will be better option? Should I ask other banks to open new loan for me?

    Please advice.

    Thanks
     
  15. Richard Taylor

    Richard Taylor Mortgage Broker & Brisbane Buyers Agent

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    Hi paper

    You will need to release the PPOR as security for the first IP in order to access the equity and use as deposit for IP #2. Untangle it now and get it right so you are not limited going forward.

    All lenders are going trying and encourage you to X the loans as it is in their interest to do so.

    Avoid the Banks directly and get a broker to do it for you so it is set up correctly.

    Cheers


    Richard
     
  16. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Happy to chat to you about it, but as I said, I'm still figuring out the details and which lenders where it will or won't work.
     
  17. Redom

    Redom Mortgage Broker Business Member

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    Get your broker to see if you can fit into Homeloans Classic, FirstMac or Homeloans Accelerate.

    Those three work now and unless you fall outside policy, your borrowing power wouldn't have halved with them (quite likely higher).

    Some info about those lenders, and their policies are in this thread: https://propertychat.com.au/communi...e-income-in-the-new-lending-environment.1315/

    Cheers,
    Redom
     
  18. mcarthur

    mcarthur Well-Known Member

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    Thanks Redom, but I'm assuming Peter's got something better in mind than simply going to lenders with less serviceability constraints.
    It appears to be much harder now for a broker to steer a medium-term (say 3-8 yr) path through the lending institutions to match an investor's strategy as the rules are still changing. I'm hoping Peter's statement indicates he's getting closer to one that doesn't simply entail going through increasingly riskier (personal comment!) institutions... :)
     
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  19. wombat777

    wombat777 Well-Known Member Premium Member

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    Changing the topic slightly, what are the current interest rates ( with or without discounts ) that lenders are currently offering for investment loans.

    The loan for my 1st IP negotiated back in March is 4.69% fixed-interest with CBA.

    I'd like to see what rates are possible at 90% LVR for investment purposes.
     
  20. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Its very dangerous fixing in this market - you are locking yourself with a lender and potentially locking yourself out of an equity. Lender's are making potentially huge changes to their credit policies so things may look ok today but not so tomorrow.

    If that happens then you wont be able to refinance without incurring huge break costs.