105% loans
- Thread starter beech
- Start date
They can if you'll manage to get a valuation higher than the purchase price. An example may be an OTP purchase where you bought an IP OTP a year ago for $300K exchanging on a deposit bond (cost you around $800 for $30K 12 months bond). Then apply for finance prior to settlement. If IP prices went up over the year you may be able to convince the bank's valuer that the property is now worth, say, $330. Financing at 95% will give you $313,500 which is 104.5% of the purchase price with no xcol. Earlier this year I was able to get 105% valuation on OTP unit in Sydney exchanged just 9 months prior to settlement.
Cheers,
Lotana
Cheers,
Lotana
Hi Darren
A Self secured 105 % + loan is possible.
Liberty offer such a product. It is not suitable for investors in most instances because of the high repayment requirement of an accelerated amortisation schedule and the obvious rate for risk that one carries.
ta
rolf
A Self secured 105 % + loan is possible.
Liberty offer such a product. It is not suitable for investors in most instances because of the high repayment requirement of an accelerated amortisation schedule and the obvious rate for risk that one carries.
ta
rolf
hi guys thanx for the replys.
Rolf,what would the best deal be at the moment for 95% borrowed inc costs?
Liberty sounds ordinary to say the least although it would only be for maybe 6 months,building units so could probably refinance on completion.
Any idea of the costs involved in breaking a Liberty contract early and refinancing?
thanx again Darren.
Rolf,what would the best deal be at the moment for 95% borrowed inc costs?
Liberty sounds ordinary to say the least although it would only be for maybe 6 months,building units so could probably refinance on completion.
Any idea of the costs involved in breaking a Liberty contract early and refinancing?
thanx again Darren.
G'day all,
Isn't a "105% lend" often just a combination of (say) 15% from your PPOR (LOC) and 90% against an IP? If so, no xcoll has to take place .... Your choice, really.
Of course, for those starting out, there may be no PPOR equity to draw on - but, then, usually a 10 - 15% deposit "does the trick". I guess this (and even the first example) may not "qualify" as a true 105% lend - it may all come down to definition....
As far as I'm concerned, if ALL of the costs of an IP are borrowed, that's a 105% lend. What do YOU say? Especially you, Darren - what do you think?
Regards,
Isn't a "105% lend" often just a combination of (say) 15% from your PPOR (LOC) and 90% against an IP? If so, no xcoll has to take place .... Your choice, really.
Of course, for those starting out, there may be no PPOR equity to draw on - but, then, usually a 10 - 15% deposit "does the trick". I guess this (and even the first example) may not "qualify" as a true 105% lend - it may all come down to definition....
As far as I'm concerned, if ALL of the costs of an IP are borrowed, that's a 105% lend. What do YOU say? Especially you, Darren - what do you think?
Regards,
Hi Darren
Standard Security (not more than 2 dwellings) may go to 95 on construction, not knowing your $ though Im really hesitant.
ANZ is ok, bankwest probably a bit more flex, but in both cases its the LMI provider that makes the call.
<=6 % variable is not unusual.
Big LMI sting for only 6 months though, You could try and get a good Target on Completion val and see if a lender will take em on at 80 % TOC instead.
Ta
rolf
Standard Security (not more than 2 dwellings) may go to 95 on construction, not knowing your $ though Im really hesitant.
ANZ is ok, bankwest probably a bit more flex, but in both cases its the LMI provider that makes the call.
<=6 % variable is not unusual.
Big LMI sting for only 6 months though, You could try and get a good Target on Completion val and see if a lender will take em on at 80 % TOC instead.
Ta
rolf
