95% lend mortgage insurance

[tobe]

The issue here is the rebate, because you need it for the funds to complete.

If you have 6 months genuine savings, and service ok, Id be going home loans ltd at 95% plus LMI with their secured visa of up to $20k to cover the costs.

That way you can get the vendor to discount the sale price instead of rebating the stamp duty, and remove that as an issue. It will also allevaite the risk of a short val. IMHO.

The product is through adelaide bendigo, and can be insured through either insurer. The secured visa is at home loan rates, and some with good cashflow use it to reduce LVR and LMI accordingly.

 

[Marty McDonald]

Will score 5 with the credit enquiries menaing max loan 90%. Sorry but I dont think this will work.

 

[tambourineman]

The issue here is the rebate, because you need it for the funds to complete.

If you have 6 months genuine savings, and service ok, Id be going home loans ltd at 95% plus LMI with their secured visa of up to $20k to cover the costs.

That way you can get the vendor to discount the sale price instead of rebating the stamp duty, and remove that as an issue. It will also allevaite the risk of a short val. IMHO.

The product is through adelaide bendigo, and can be insured through either insurer. The secured visa is at home loan rates, and some with good cashflow use it to reduce LVR and LMI accordingly.

sounds like a good idea, but the broker lodged the application with CBA yesterday and I don't want any further enquiries if it doesnt go through I might consider it next time but if we wait 12 months we should be at a lower LVR anyway.

 

[Mick C]

tambourineman - firstly sorry to hear about your bad experience; the property your buying sounds like a cracker of a deal ...else you wouldn't go for round 2...

Plenty of good and sound advice has been provided already; not much more i can add, beside def consider ROLF advice regarding the $99 CBA upfront valuation( may be too late now,not sure)


But my feeling is with that many enquiries and a recent LMI rejection + a stamp duty rebate from the vendor your chances are very slim...less then 10% at 95% LVR- unless your broker can hi-lights some of the strenght in your file to offset the negatives.

P.s don't bother with Liberty- they will reject it...they hate vendor rebates or finance over 85% LVR.

Yes, number of credit enquiries might have been one of the reasons for decline, however it could have been a number of things, and those reasons wont necessarily be passed onto the borrower bank manager/broker.

I would guess it's more the credit enquiries more then anything at 95%...i doubt the LMI ppl had a chance to even "consider" the file with the vendor finance/rebate in place.

Reading between the lines I think the HLM is covering up for his / her mistake as he / she told you the stamp duty rebate would not be an issue when they should have known better. .

Yep- but some brokers would still "try" to write a loan even if the chance of approval is close to zero... worst part is they give their clients a false hope.

If I was going CBA, first thing would have been to spend 99 bucks to get a valuation done before app to see how he CBA panel valuer sees the special conditions.

Concur!

Personally though I wouldn't recommend CBA knowing what you've disclosed about your credit report as CBA tend to score multiple enquiries very harshly.

Concur! with 6-8 in 6 month and a LMI rejection at 95% doesn't look good with CBA or any lender..


I would;

1. Wait the min 6-12 month period to clear the file OR
2. Get a min of 10% deposit + stamp duty + LMI ( try not to cap the LMI ...as some lenders will score your loan as 91-93% when you cap...) - use of some creative lender as mentioned by Tobe would/could help in this situation.


Good luck! and happy house hunting.

Regards
Michael

 

[tambourineman]

tambourineman - firstly sorry to hear about your bad experience; the property your buying sounds like a cracker of a deal ...else you wouldn't go for round 2...

Plenty of good and sound advice has been provided already; not much more i can add, beside def consider ROLF advice regarding the $99 CBA upfront valuation( may be too late now,not sure)


But my feeling is with that many enquiries and a recent LMI rejection + a stamp duty rebate from the vendor your chances are very slim...less then 10% at 95% LVR- unless your broker can hi-lights some of the strenght in your file to offset the negatives.

P.s don't bother with Liberty- they will reject it...they hate vendor rebates or finance over 85% LVR.




I would guess it's more the credit enquiries more then anything at 95%...i doubt the LMI ppl had a chance to even "consider" the file with the vendor finance/rebate in place.



Yep- but some brokers would still "try" to write a loan even if the chance of approval is close to zero... worst part is they give their clients a false hope.




Concur!




Concur! with 6-8 in 6 month and a LMI rejection at 95% doesn't look good with CBA or any lender..


I would;

1. Wait the min 6-12 month period to clear the file OR
2. Get a min of 10% deposit + stamp duty + LMI ( try not to cap the LMI ...as some lenders will score your loan as 91-93% when you cap...) - use of some creative lender as mentioned by Tobe would/could help in this situation.


Good luck! and happy house hunting.

Regards
Michael

Thanks - I am challenging some of these enquiries in any case, I phoned BankWest on Friday and the person I spoke to admitted they made a mistake by adding two more enquiries to the loan application when I already had a pre-approval. She said the HLM should have used the application for the house we withdrew from. I also discovered when we applied for a home loan with Savings and Loans three years ago (which was declined due to low valuation) they hit our file no less than seven times (three for the home loan and four different smaller amounts which from memory he was going to give us a personal loan to cover the gap in the valuation, which we decided not to do but he made all these enquiries anyway), kept changing the amount and put it through two different LMI people at the same time - its ludicrous.

CBA move much quicker it seems, they ran a check on Friday and haven't said no yet but if they do we'll take your advice and move on for 6 - 12 months. Renting is just ******* me off at the moment, I want out!

 

[Rolf Latham]

Thanks - I am challenging some of these enquiries in any case, I phoned BankWest on Friday and the person I spoke to admitted they made a mistake by adding two more enquiries to the loan application when I already had a pre-approval. She said the HLM should have used the application for the house we withdrew from. I also discovered when we applied for a home loan with Savings and Loans three years ago (which was declined due to low valuation) they hit our file no less than seven times (three for the home loan and four different smaller amounts which from memory he was going to give us a personal loan to cover the gap in the valuation, which we decided not to do but he made all these enquiries anyway), kept changing the amount and put it through two different LMI people at the same time - its ludicrous.

CBA move much quicker it seems, they ran a check on Friday and haven't said no yet but if they do we'll take your advice and move on for 6 - 12 months. Renting is just ******* me off at the moment, I want out!

An important lesson for newbie brokers and borrowers looking for loans with LMI.

Get you CRAA file and UNDERSTAND what it means in the eyes of the NEXT assessor or black box.

By allowing brokers and bankers "control" over one's CRAA file to the extent demonstrated here is a sure way for one to run into issues.

PS, im not picking on you here TBM, just making a general point.

Here we are with NCCP regs covering a myriad of mostly "low impact" stuff to borrowers, while this sort of thing is TOTALLY ignored, and can stuff one's future up for a looooooooong time with almost unquantifiable NPV $ impact.

Im not anti NCCP, Im just against bad "government" in this regard ( not a political issue, but a governance issue).

In regards of CRAA abuse, the real stakeholder in this "game" have not been protected, in fact they have been sidelined.


ta

rolf

 

[tobe]

It might be a cat 5 to CBA because of credit score, (depedning onthe rest of your details)but I dont think the number of enquiries will make a huge diference to HL ltd, or other non bank lenders. If you are worried about the number of enquiries, and credit scoring, there are a few lenders who dont credit score at all which you could try, however your still stuck with the funds to complete issue.

 

[tambourineman]

CBA were prepared to go to 90%, the enquiries were an issue but not as big a problem with some explaining.

we have decided to save more and wait a few months

thanks for the advice, thought i would pass this on incase there are others in similiar circumstances who can benefit from it.

 

[natedog]

Hi All,

Exact same experience we have had in the last week with CBA.

It's a tight deal, it services okay, but when we went for 95 lvr, CBA came back with cat 5 risk (high lvr, non CBA customer, tight serviceability)

Broker escalated due to our asset position and higher year to date income than past group certificates, suggested 90 lvr and came back as cat 3 risk....so subject to valuation we are now getting finance.

It's good, I learn more and more with each hurdle faced

Cheers.
Nathan

 

[Marty McDonald]

Hi All,

Exact same experience we have had in the last week with CBA.

It's a tight deal, it services okay, but when we went for 95 lvr, CBA came back with cat 5 risk (high lvr, non CBA customer, tight serviceability)

Broker escalated due to our asset position and higher year to date income than past group certificates, suggested 90 lvr and came back as cat 3 risk....so subject to valuation we are now getting finance.

It's good, I learn more and more with each hurdle faced

Cheers.
Nathan

Well done.

I think this shows the difference between how they rate 90% and 95% loans. CBA and 95% loans not a good mix I don't think when there are better options out there.