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Sonata what I had hoped for!

Discussion in 'Property Finance' started by Giuseppe, 30th Apr, 2016.

  1. Giuseppe

    Giuseppe Active Member

    Joined:
    20th Nov, 2015
    Posts:
    30
    Location:
    Melbourne
    I’m a LoDoc candidate and work for myself.

    I’m currently applying for refinancing on two loans and have been knocked back by 3 of the 4 big banks as they reckon I can’t service my loans, even though there are buffers in place. Bummer.

    My broker found me a deal with a 2nd tier financial institution and it will cost me fees of around $10K for one refinance and around $3,5K for the other. This isn’t mortgage insurance but a lender risk fee (or something like that). After all this rigamarolling, it will free up just over $500K. The loans to be refinanced are $960K & $300K respectively.

    My financial position is around 65% equity to 35% debt, or hereabouts. The interest rates are quoted at 5.3%.

    Sounds expensive but frees up the cash I require. Any thoughts anyone? Is this normal under my circumstances? Thanks in advance.
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,165
    Location:
    Gold Coast
    Lo doc is always going to cost more at the 80 % mark and usually some form of lmi or risk fee margin

    Rarely,such deals can actually be done on ful doc since the data required for many lo doc lenders isn't far off a full doc anyway....

    Hrs to say without knowing full circumstances

    Ta

    Rolf
     
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  3. Giuseppe

    Giuseppe Active Member

    Joined:
    20th Nov, 2015
    Posts:
    30
    Location:
    Melbourne
    Thanks, Rolf.
     
  4. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,452
    Location:
    Perth, Melbourne, USA
    I used RAMS lo doc at 80% LVR, 5%, excellent product, accountant signing off on income.
     
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  5. tobe

    tobe Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    891
    Location:
    Melbourne
    Rams have a pretty good product. Trouble is many brokers don't recommend them. Under 70% theres quite a few low doc lenders who don't have a risk fee. Maybe get a second opinion.
     
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  6. Giuseppe

    Giuseppe Active Member

    Joined:
    20th Nov, 2015
    Posts:
    30
    Location:
    Melbourne
    Thank you, everyone. I will research RAMS further.