Make sense.
1st Investment Property Loan
- Thread starter BlkNite
- Start date
Make sense.
Awesome advice. That way he gets paid on the refinance and you lose your LMI credit and refinance to a lender with even more conservative servicing than CBA.
Hmm.. I am not getting a good vibe about my broker here.. but thanks again Shahin.
Another option I was thinking was borrowing 45Ks from wifey business and repaying her in next 6-12 months. That shall help with new loan.
You've indicated that you paid LMI previously with the CBA. The broker is not acting in your interests by recommending you move to BW.
You need to leverage to 90% of the properties current value to get any real money out of it, this means you'll have to pay mortgage insurance in full again.
If you stay with the CBA you'll only have to pay LMI on the amount of the increase.
If we assume the LMI is 2%, you pay $7,200 to move to BW. If you stay with the CBA the LMI costs about $800.
The reason the broker is doing this is because they only get paid on the 'new money'. The CBA will pay them on the increase of about $40k, BW will pay in the full loan of $360k.
Either the broker is incompetent and doesn't know the ins and outs of this, or they're screwing you to get paid more.
Either way, you should be dealing with someone else.
Sounds good , If Shahin does not mind I would really like to get his opinion my situation.
Call the dude - I'm sure he won't mind.
Left a msg for him . And told my existing broker to cancel valuation even though he said its free and suggested me to do it.
Good move, definitely best to have looking after your interests as first priority.
I have a few NRAS info enquiries from SS's who use Shahin, all say great things.
Cheers,
Redom
Thanks guys , I am in touch with Shahin & he has been very helpful.
But it seems my situation is becoming more tricky. I dont think I can get any top up from CBA as I recently picked up a contract via my ACN and CBA wont service my top up request.
I am thinking of selling my existing PPOR , get 50-60 Ks and use it as deposit for new PPOR & wait 12-18 mths or more to buy an IP but than my other side thinks that I would loose opportunity to own a IP at such a price (i.e. my existing PPOR to IP). Than sometime I think I shall just wait for another 12 months and see but than that's what i did 2 years ago as well .
Very very confused , what do you guys suggests to your clients in such situations ?
But it seems my situation is becoming more tricky. I dont think I can get any top up from CBA as I recently picked up a contract via my ACN and CBA wont service my top up request.
I am thinking of selling my existing PPOR , get 50-60 Ks and use it as deposit for new PPOR & wait 12-18 mths or more to buy an IP but than my other side thinks that I would loose opportunity to own a IP at such a price (i.e. my existing PPOR to IP). Than sometime I think I shall just wait for another 12 months and see but than that's what i did 2 years ago as well .
Very very confused , what do you guys suggests to your clients in such situations ?
