100% finance

I heard recently that St George have a new product out which is 100% finance. Quick snippets later reveal that there is a 2.5% of the total loan figure fee for the privilege. For a $300K loan, for example, this works out to $7,500.

I'd be interested to hear opinions here on whether or not this is worth it? Whaddaya think?
 
Hi Jacque
To my knowledge (which is probably limited!) there's no mortgage insurance on these loans, so you have to factor in the saving there at 100% LVR.
 
if you are buying ip No. 2,3,4, etc. and have reduced the loans sufficiently to give you enough collateral to use the difference as a
( claytons deopsit) you should be able to borrow 100% or even more as i have done.

it would have to be a pretty good deal to pay $7,500 - just to get a loan.
 
Originally posted by ruk
It would have to be a pretty good deal to pay $7,500 - just to get a loan.

Yeah, but if Lissy is right and you avoid mortgage insurance, on a loan of that size you could still be $5000+ ahead?
 
i've never had to take out mortgage insurance.

on some of my ips i have borrowed 100% of the price and legal fees,stamp duty etc + renovation costs + 1 full years rent.

if you have the collateral, you can borrow 300% without paying rediculas charges.
 
Jacque:

Is this an investment-only type loan or can it be used for PPOR-type purposes also?

Do they take security over something else or is it fully secured against the property financed?

If it's cross-collateralised, I don't think it's worth $7,500. Cheaper ways to get the same result (eg. equity LOC), and without the cross-collateralisation.
 
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