Recent content by tobe

That's not how it works. IOIA is a different product entirely. Breaking your fixed rate to change to a different product would no doubt involve break fees, even if you were rolling to the same rate.

Its a whole new application for most lenders. It might already be too late, depending on the complexity of the deal and their current turn around times.

SO your a business owner, and your business has some cash, that it would like to lend to you for a deposit on a house? No problem with this scenario as the bank looks at both you and the business's assets and liabilities to determine your eligibility. Its a zero sum game. If you are...

great topic. The GFC disrupted lending by disrupting,and then killing the securitisation market, which by that point was used by almost every lender for every resi deal. The lenders that remained (the big four) and their mortgage insurers, changed their policies to make their books less risky...

I think you need to get some specific advice. Only moving into the property after you have received offers to purchase it smells bad to me, and might be something the tax office is interested in.....

Welcome. I like option 1. Although option 2 gives you a CGT free profit, as you say that will give up a property with good prospects. If the long term goal is to have a passive income of $100k, then you would also need to purchase some more investment properties. You may find this best done...

You may need to get a good job, just like Joe Hockey said..... Any of these casual positions willing to take you on full time? Even though the money might not be as good, a full time job opens up quite a few more lenders to choose from.

There aren't too many pro's to consolidation in my opinion. Up until recently you might have gotten a better interest rate based on the combined loan size, and you have the convenience of dealing with only one lender.

They have the income and the deposit? You have the street smarts? Id have the property in their name and devise a cash payment for yourself as the manager of the reno.

In some whack job housing estates/local government areas in the states its illegal to hang washing, or grow vegetables visible from the street. I haven't heard of it happening in Australia.

rams has always added a small buffer. While they have increased their serviceability rate, they haven't yet changed the way they assess OFI debt.

Minimum deposit is generally about 12% of the value of the property plus stamp duty conveyancing etc. If you have equity in another property, such as the one you live in, you may be able to borrow this as well.

Your margins are too skinny. Definitely don't assume the end value to be more than the cost. Even if by some miracle the valuer says the end value is more than the cost, the bank and mortgage insurer will use the cost for working out the lending ratio, without exception. Get a long...

cash out limited to 90% including LMI, or without cash out up to 95% plus LMI 'dollar for dollar' refinancing.

Doing a custom build at 95% LVR is a little risky if you ask me. In terms of the 750k cap, that relates to the value of the property, not how much deposit you will contribute. In other words, the maximum you can borrow at 95% is $712,500 Plus lmi,or if the total project values more...