Any Lo-Doc lenders that will lend to 80% LVR with one year old ABN?

I get the feeling that being a mortgage broker is similar in aspects to being a Migration agent (I'm a migration agent). Answering a lot of questions/emails with detailed and ever changing rules only to have the recipient of the information use another broker or even do the application themselves.

At least you receive trailing commissions. Maybe my immigration clients could pay me a trailing commission for every year they stay in Australia on visas that I obtain for them.

Had a mortgage broker as an immigration client who had trails from loans written in South Africa, then moved to UK and had trails from there, then moved to Australia and had more trails. Didn't matter what the broker did each month the broker had cashflow. I also got to see how aggressive a mortgage broker could be with their own borrowings if they think the property market is rising.

Thanks again to the brokers on this site.


Ajax
 
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Hi Ajax

Cant disagree a trail is nice to have. But they're getting cut quite nicely by most lenders in the coming financial year (if they havent already) from 0 to 50%

Some staff get bonuses which is also a nice thing.

A downside is the trail can be clawed back (repaid to the lender) along with the upfront commission if the clients refinance inside of a year to 18 months to another lender or quite often internally.

But you think MBs do well with a trail, insurance guys and FPs dont do too badly - if not better from what I've seen...
 
just been to see my MB...
He advised that because I am declaring an income more then 75K, Colonial will only go to 60%.
All other borrowings with Colonial are lo-doc.
I forgot to clarify before that my loans are with colonial not CBA.
Until my ABN is 2 years old and GST rego is 1 year old, it's 60% lend or nothing with colonial.

Boods

Whilst Colonial and CBA are two different entities, they are the same busines, the same funds and the same products (just different names). the two are merging into one later this year - which is good for everyone.

Of these (inclusive) parameters regarding Colonial/CBA I have no doubt at all:
* ABN older than 1 year is okay.
* GST registration more than 6 months is okay.
* 80% LVR is okay.

Your existing broker is incorrect and I'm willing to stake money on my comments above. There may be other reasons why you can't get a loan through Colonial, but if your GST registration is more than 6 months and your ABN is more than 12 months you have passed those hurdles.
 
just been to see my MB...
He advised that because I am declaring an income more then 75K, Colonial will only go to 60%.
All other borrowings with Colonial are lo-doc.
I forgot to clarify before that my loans are with colonial not CBA.
Until my ABN is 2 years old and GST rego is 1 year old, it's 60% lend or nothing with colonial.

Boods

I'm with the Bear.


Ask your broker nicely if this is true. If they are still of a differing opinion maybe it's time to look for another (not me).
 
Hi Ajax

Cant disagree a trail is nice to have. But they're getting cut quite nicely by most lenders in the coming financial year (if they havent already) from 0 to 50%

Some staff get bonuses which is also a nice thing.

A downside is the trail can be clawed back (repaid to the lender) along with the upfront commission if the clients refinance inside of a year to 18 months to another lender or quite often internally.

But you think MBs do well with a trail, insurance guys and FPs dont do too badly - if not better from what I've seen...

Very true. The cuts are coming thick and fast.

People may even feel sorry for us shortly. They may even have some loyalty and write their business through us after picking our brains instead of going direct to the lender (migrtaions agents aren't the only one who suffer from this curse) ;)
 
Whilst Colonial and CBA are two different entities, they are the same busines, the same funds and the same products (just different names). the two are merging into one later this year - which is good for everyone.

Of these (inclusive) parameters regarding Colonial/CBA I have no doubt at all:
* ABN older than 1 year is okay.
* GST registration more than 6 months is okay.
* 80% LVR is okay.

Your existing broker is incorrect and I'm willing to stake money on my comments above. There may be other reasons why you can't get a loan through Colonial, but if your GST registration is more than 6 months and your ABN is more than 12 months you have passed those hurdles.

Off the top of your head, could you hint on possible reasons why I may not be able to increase through Colonial?

Boods
 
Off the top of your head, could you hint on possible reasons why I may not be able to increase through Colonial?

Boods

Other reasons would be:

* Overexposure to the bank - where you've got more than they're currently comfortable with.

* Overexposure to the insurer - mortgage insurers have an upper limit on how much they'll cover for a single property and how much they'll cover for a portfolio.

* If your previous applications were full doc, you won't qualify for a lo doc with the same lender (or even possibly the same mortgage insurer).

* Your existing broker may not be aware of the actual CBA/Colonial policies. They are a little different from other lenders.

Keep in mind that lo doc loans attract mortgage insurance from 60% LVR upwards. If you're being told to take an LVR below 60%, it's probably to avoid mortgage insurance.
 
90% low doc

Hi boods,
I had to look this up before responding, but you might want to have a peek at Rams. One reason for not having a ABN or GST is that the majority of your income is derived from property investment (supported by accountant letter). In this case, no ABN or GST registration required.
However, the whole thing must make sense. You must own some properties and have a reasonalbe rental return on them.
If so, you can do a 90% lend with LMI, only for the month of June, then dropping back down to 80%. MGIC will no longer lend to 90% as of the 27th of June. Also, can be fixed for two years at 8.70%.
Hope this helps.
 
This back from RAMS re 90% lvr lo doc loan. Am told there was a recent policy change specific to the low doc 90 effective the 26th of May Upshot is no equity release (i.e. no release of cash as a buffer):-

"Self Certified (Low Doc) 90% Loan

Loan purpose

Acceptable Loan purposes will now only include:

Purchase

Refinance only

Refinance and Purchase

Equity release (when not included in a refinance application).



Where multiple securities are involved and the application involves a refinance and a purchase, equity release will be available for deposit and purchase costs of the new property only.

Where a debt is being refinanced from another lending institution and equity release has been requested that does not involve a new purchase as per the point above, equity release is no longer applicable at the time of refinance"
 
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Thanks for all your replies people...I am still waiting for a val from Colonial so I can make an informed decision as to which bank I will go with.

Boods
 
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