Best Lender & Borrowing to 95%?

Hi All,

We are looking to borrow up around $1 mil, variable, with a 100% offset account. Our Credit History & Serviceability are very good ($1.4 - 1.5mil based on serviceability alone).

Most lenders don't seem interested in lending to 95% any more with some exceptions for existing customers. I think NAB are still doing it for non existing customers but they wont put the LMI on top of the loan requiring it to be paid out of cash, which largely defeats the purpose (chews up our available cash savings).

I was wondering what lenders are still lending to 95% and if they are offering reasonable rates?

We also intend to purchase again shortly after our next purchase (2 in quick succession). While the first purchase may come in under $1 mil, the second would definitely take our total borrowings over 1 mil. So a lender with more tolerance to higher lending levels could be beneficial. Any recommendations on this front?

Are we likely to be able to borrow more on the second loan if it's with the same lender? Will going to a different lender be a disadvantage? We want to position ourselves as well as possible to be able to borrow again soon.

Thanks,

MF35
 
Hate to say mf35 you wont find any lender offer you 95% plus LMI on a loan amount of $1M in the current climate.

Even with NAB we recently got 95% of $700K but think that was close the max.
 
Hi MF

95 % to a mill isnt impossible, but likely a stretch

Just last week we did get a 95 % lend placed at 850 k loan, but was a very strong candidate, capped LMI to that level wont fly usually, though we have got 97 %s through to around 750 k.

You would only get ONE bite on that one with the way credit scoring works these days.

the other thing to remember is that some lenders now have max loan limits at that sort of LVR that dont go ober the 500 k mark.

Finally, trying to place 2 lmi exposures at that sort of level with the same mortgage insurer, let alone the same lender, isnt smart, regardless of what airy fairy offer the salesperson puts on the table. 90 pts discount on no loan is missing the whole point,

Remember, the vast majority of lender reps, and possibly most brokers dont give a hoot about your CRAA. Nor do they actually have an understanding of how simply and quickly you can fry your CRAA with wasted pre approvals and apps that were NEVER going to fly. This has always been an important issue, but now with more and more rationing of funds, this little aspect is becoming front and centre in growing a portfolio.

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