95%LVR + quick topup

[Peter_Tersteeg]

how much does that cost for the LMI if it is 95% ?

It varies a bit, but expect 2.5% to 3% of the loan amount.

 

[Timocracy]

Spoke to the sellers agent, they told me it had a valuation done in August last year that came in at 240K(I believe them).

I'm tossing up between CBA 7.31% and NAB 7.07% packages, Any compelling reasons why CBA would be worth the extra .24%?

 

[JohnHenry]

Depends how much money is involved. But it's quite substantial, at least ~3% of the loan.

Thanks Aaron.

 

[Aaron_C]

Spoke to the sellers agent, they told me it had a valuation done in August last year that came in at 240K(I believe them).

I'm tossing up between CBA 7.31% and NAB 7.07% packages, Any compelling reasons why CBA would be worth the extra .24%?

Sometimes it's more than just rates....

 

[Peter_Tersteeg]

Spoke to the sellers agent, they told me it had a valuation done in August last year that came in at 240K(I believe them).

I'm tossing up between CBA 7.31% and NAB 7.07% packages, Any compelling reasons why CBA would be worth the extra .24%?

You can do better than 7.31% at the CBA. They've pointed you to a product which might not be ideal for you. The only reason you'd go for this product is the MISA account (which is a very average version of an offset account). You might also use it if you're planning on purchasing more properties in the very near future.

The big banks aren't really competing for smallish loans under $250k. You may be better served if you look outside of the major lenders.

 

[Ms Jade]

CBA will do top ups to 95% (so will genworth but most all lenders won't) as long as purpose is home improvements or personal purposes ie no investment.

So I could buy a new car / holiday but not an income-producing asset. May I ask the reasoning behind this?

 

[Mick C]

cash out or loan top up at 80-85% - bank will allow personal uses and may just ask for some proof.

At 90%+ , has a higher chance of rejection... especially with the LMI; because if you use it for personal uses the "value" depreciates....VS buying a investment.

All about risk migration.


Regards
Michael

 

[silverx]

Thanks for the replies guys! So hard to get the underlining rules the banks don't publish

The minor reno must be done, concrete floors. The reason I think it's undervalued is because the market is very weak and it has minor faults, people are getting nicely done up places cheap so why go to any effort?

They tried to auction it but no-one registered to bid.

No sales in the block since 2009 when there were three sales with a median of 290K(market has taken a dive since then about 10%) I put in 205K and they took it, my brother is a builder and he quoted me 7K max to get it up to scratch.

rental yield gross 7.1% net 4.6%
Capital gain 25year history 7.23%(Including 10% price drop)

Any criticism would be highly valued.... That's what the 5 day cooling off period is for!

southport/labrador is hit hardest in GC market slump. had one property there valued last week 10% less than what we paid 3 years ago

and it's still falling, dont know if it's good idea to get into it now?

 

[Timocracy]

My numbers incorporated a 10% loss over the last two years plus a large margin of safety to account for the down going market.

 

[Rolf Latham]

So I could buy a new car / holiday but not an income-producing asset. May I ask the reasoning behind this?

Bank logic : )

there are lots of better ones, like

Im sorry sir, you cant afford that loan on IO, so we will reduce tyour risk and allow it on PI

Im sorry Miss, you are rent reliant, you have one job, and 14 IPs.......so all your tennants may run away, but we are sure you will keep your job

ta'rolf

 

[The Chaser]

... post-settlement is considered to be an Internal Refinance, and refinance is generally limited to 90% + LMI ...

Do NAB limit post settlement internal refinances to 90% + LMI, or will they got to 95% + (pro-rata) LMI?

Does the increase to the loan on refinance have to be for a minimum amount? i.e. Do you need enough equity to be able to increase the total lend by a minimum of '?' amount above the original loan amount?

Thanks
Angela