Banks want 20% down

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From: Louie Langov


Has anyone realised the recent lifting of mortgage insurance from 5% to 10%, they want you to pay 20% so as to avoid it. So i guess that we have to pay for a correction in the market that we have to have, it seems the banks are preparing for it.
 
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Reply: 1
From: Frank Shead


Louie,
Why pay LMI? when you can get 105% or 110% with no LMI.
Frank Shead
 
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Reply: 1.1
From: Michael G


Frank,

Are we talking ...

a) A lender who lends 100+% off a single security?

b) cross collaterisation?

c) conversion of equity to cash via an LOC and using this to fund the 20% deposit + 2-5% purchase costs?

I would be interested to know which option it is and details regarding it (i.e. name of lender).

Michael G
 
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Sim

Administrator
Reply: 1.2
From: Sim' Hampel


Frank, a blanket statement like yours is quite uninformative, and to me smells rather like spam.

Please explain yourself so that we all may learn.

 
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Reply: 1.2.1
From: Steve Kiddle


Frank,
Just to clarify, you quote 105% and 110% borrowings, obviously to cover loan costs, stamp duty, legals etc. This then allows that the full 110% loan is tax deductible.

Question : Does the ATO set a % level for borrowing against an IP that is tax deductible. Is the limit equal to the value of all above expenses + property purchase price

or, can you borrow say 112% and use the few extra $1000 to pay the IP costs for the first few years and still claim the full 112% as a tax deduction

Thanks
Steve K
 
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Reply: 1.2.2
From: Robert Forward


Hi Sim

It's not the first time Frank has made Blanket comments like that. I have asked him previously to be more indepth with his comments. But alas no luck so far.

Frank, how about details please mate. WE ALL would appreciate it.

Cheers
Robert

The Sydney "Freestylers" Group Leader.
 
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Reply: 1.2.1.1
From: Dale Gatherum-Goss


Hi Steve!

The tax office do not have an official opinion on this issue as far as I know.

However, I believe that you will be able to claim a tax deduction for the interest in full on the 112% if you could explain what the extra funds were for.

As always, the issue will come down to the facts in front of the tax office and your explanations.

Have fun

Dale
 
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Reply: 1.2.2.1
From: Frank Shead


All who wonder.
When I was a kid "There was a saying, loose lips sink ships."

So now I am the scam.
Robert if you asked me to forward these matters to you, I must have missed your request. Do apologise.
Liberty Financial Pty Ltd of 535 Bourke Street Melbourne Phone. 03 9620 0088. www.libfin.com.au

There is an accelerate payment schedule to bring the loan down to 95% of loan over the next 5 years.
Incidentally there is marvellous cover for very bad Credit impaired people.

Please feel free to examine for yourself
Frank Shead
 
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Reply: 1.2.2.1.1
From: Robert Forward


Thanks for the reply Frank, now everyone can see part of what the deal contains.

I can understand missing posts, especially when this site is getting up to 100 per day. Trying to keep up with them is getting harder and harder.

So, your saying that this lender will lend say 110% of purchase with large repayments in the first 5 years to lower the principle owed. Do they require LMI and what is the interest rate?

Cheers
Robert

The Sydney "Freestylers" Group Leader.
 
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Reply: 1.2.2.1.2
From: Michael G


Frank,

So could you elaborate on the finance system?

let's use an example of a $200k property, outer west Sydney. And buyer has income of say $55k/yr

If they were to apply for a loan today what would be the plan and interest rates?

Michael G
 
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Reply: 2
From: Rolf Latham


Hi Louie

Yes the LMI people are getting a little tighter, but you can still do a 97 % loan up to 400 k interest only with people like ANZ in metro areas and effectively not have to cough any Lenders Mortgage Insurance out of your own pocket.

ta

Rolf
 
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Missing posts...

Reply: 1.2.2.1.1.1
From: Ross Sondergeld


Hi everyone,

>I can understand missing posts, especially when this site
>is getting up to 100 per day. Trying to keep up with them
>is getting harder and harder.


Well, i personally get the email digest everyday.

It's easy to read and very efficient.

P.s. Last night i went to the internet chat section and found it extremely
hard to use to find the latest messages. I think i'll stay with the email
digest. Much easier...


Ross Sondergeld ~ Buyer Agent

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
" Imagine buying real estate the easy way...
...with a Buyer Agent on your side!!! "

Buyerside Real Estate Mobile 0412 289 464
Office 9b, 34 Glenferrie Drive Office (07) 5562 1555
East Quay Corporate Park Fax (07) 5562 1248
Robina QLD 4226, Gold Coast Buyerside@hotmail.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


_________________________________________________________________
Join the world’s largest e-mail service with MSN Hotmail.
http://www.hotmail.com
 
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Reply: 2.1
From: Jas


1) Platinum+ is only available on owner occupied properties.
2) Only applicable for customers with an unblemished credit history and
a strong disposable income

Cuts a lot of people out that.

http://www.homeloans.com.au will also do 100% loan, but I'm not sure if
this is for owner occupied, or investors

Jas
 
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Reply: 2.1.1
From: Patrick O Brien


Homeloans Limited will lend 100% LVR but you need to show 3% genuine savings and you have to be a first home buying owner occupier. Obviously that leaves a lot of people out.

Liberty will lend 105% LVR but the interest rate is very high at about 13% I think (of the top of my head).
 
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