95% lenders
- Thread starter ddan
- Start date
Based on what criteria? What servicing position? What location?
Kinda like asking 'please list the top 5 cars?'
Though list of lenders to avoid is always easier.
Kinda like asking 'please list the top 5 cars?'
Though list of lenders to avoid is always easier.
None of this information helps. To accurately assess this, we need to know your full assets and liabilities, as well as existing banking relationships. Lenders are simply extremely conservative when dealing with 95% loans. Quite a few will do them, but there are usually additional criteria to meet.
CBA will do 95% investment loans, for existing borrowers only.
Westpac and subsidiaries (St George, BOM, etc) will do 95% investment but you have to demonstrate that you've got at least 10% equity in another property.
ANZ and NAB will do them, but their criteria are so painful to meet or their rates are so high I don't even bother.
The list goes on...
If you want a 95% loan, better to be purchasing the property for yourself, the rules aren't so restrictive. It doesn't work very well though if you live on the other side of the country from the property.
IMHO if you're looking for a 95% IP loan in Logan, save another 2%-3% of the purchase price and you'll likely qualify for a 90% loan. The rates will be cheaper, your choices more diverse, the criteria far easy to meet. On a combined $150k income for a property in Logan, this should take about 1-2 months to save the difference.
None of this information helps. To accurately assess this, we need to know your full assets and liabilities, as well as existing banking relationships. Lenders are simply extremely conservative when dealing with 95% loans. Quite a few will do them, but there are usually additional criteria to meet.
CBA will do 95% investment loans, for existing borrowers only.
Westpac and subsidiaries (St George, BOM, etc) will do 95% investment but you have to demonstrate that you've got at least 10% equity in another property.
ANZ and NAB will do them, but their criteria are so painful to meet or their rates are so high I don't even bother.
The list goes on...
If you want a 95% loan, better to be purchasing the property for yourself, the rules aren't so restrictive. It doesn't work very well though if you live on the other side of the country from the property.
IMHO if you're looking for a 95% IP loan in Logan, save another 2%-3% of the purchase price and you'll likely qualify for a 90% loan. The rates will be cheaper, your choices more diverse, the criteria far easy to meet. On a combined $150k income for a property in Logan, this should take about 1-2 months to save the difference.
CBA information is incorrect, CBA will lend to new borrowers for IP up to 95% (you're confused with refinances were CBA will only go up to 90%)
I agree that alot of the time its often better to save an extra 2% and get to 90% where the LMI is alot lower and in some cases you have further ability to negotiate rate. And again another price point at 87%. But it all depends on what your purchasing, $5k extra in LMI might seem like alot upfront but as it's capitalised the actual repayment extra only works out to be ~$5p/w, and considering the opportunity cost if you miss out on purchasing a property whilst waiting to save the extra 2-3% and the market moves or you miss a bargin. Always has to be relative
CBA will top up to 95% for existing customers though. Refinance from another lender is only up to 90%.
On reflection, you're correct, they will do IP purchases for 95%, I simply don't use them for this purpose because the deal on offer is quite expensive, there's a few lenders who are more cost effective in this space. Not may though, for investors in particular 95% lending is best avoided if possible.
I'll let you off Pete it's Friday.
Ha! Watching a really good/bad movie on You Tube (Starship Troopers), reading the forum at the same time.
95% lenders. Do you want to know more?
Isn't it simply consideration if LMI providers - it their policy that ultimately determines whether the loan is approved it not.
There's a lot more to it than just picking an LMI provider. Lenders also have their own policies and agreements with the LMI providers.
In many cases the lender has their own authority to sign off on a loan without handing it over to the LMI people which can be used tactically across multiple lenders. This can allow you to borrow far more using LMI than the LMI provider would normally allow.
For example, there's two primary LMI providers who will allow you to borrow between $800k and $1.5M each. With some strategic lending, we've got clients who have borrowed over $5M all at around 90% across their portfolio. You can't do this by simply choosing and LMI provider, you need to understand their relationship with lenders as well.
In many cases the lender has their own authority to sign off on a loan without handing it over to the LMI people which can be used tactically across multiple lenders. This can allow you to borrow far more using LMI than the LMI provider would normally allow.
For example, there's two primary LMI providers who will allow you to borrow between $800k and $1.5M each. With some strategic lending, we've got clients who have borrowed over $5M all at around 90% across their portfolio. You can't do this by simply choosing and LMI provider, you need to understand their relationship with lenders as well.
BWA will technically go to 95 % + unlimited cap.
Sort of easy to get through sometimes
ta
rolf
Sort of easy to get through sometimes
ta
rolf
I've done quite a few of these recently and all have been approved. Their processing times can be a bit slow but I've been told they're working on that.
Cheers
Jamie
95% investment...credit scoring and a general reluctance to lend for this are the main hurdles.
Also if the LMI is capped to a maximum of 95% (92% + LMI) then your only 2% off doing a 90% + LMI lend which is hell of a lot cheaper and easier to get approved as the others have stated.
Suncorp and Westpac are still doing 97% inc LMI as they are QBE insured but I get regular enquiries from people who have been declined for these loans so unless everything else is very strong it's an avoid for mine.
Also if the LMI is capped to a maximum of 95% (92% + LMI) then your only 2% off doing a 90% + LMI lend which is hell of a lot cheaper and easier to get approved as the others have stated.
Suncorp and Westpac are still doing 97% inc LMI as they are QBE insured but I get regular enquiries from people who have been declined for these loans so unless everything else is very strong it's an avoid for mine.
I've done them at just under 100%.
I find they give priority to locals
Processing is slow but if you pre-warn clients usually goes ok.
Still need 5% genuine deposit so technically a 95% LVR but can capitilise or add the LMI onto the loan as long as total LVR remains under 100% LVR. Max loan is 750k.
All others go to max LVR of 97% inc. of LMI so Bankwest have a niche thier.
Adelaide Bank also have a funky product that can achieve a similar outcome with a different structure.
95% loan and they add all of the LMI on top, the LMI premium is about 4% and you end up with a 99% loan. You still need to come up with 5% plus the purchase costs (stamp duty etc).
