Capitalising LMI etc

[UrbanPlanner]

Was hoping for some advice from the experienced brokers, investors. Are there lenders outside of BankWest that will capitalise LMI, stamp duty etc, with a 95% loan? We've just secured a 3x2 in Stafford, Brisbane for $437k and our broker is saying that BankWest (with whom we have 2 properties with already, plus our transaction accounts etc) are the only ones that will capitalise LMI etc and therefore are the ones to go with. I however would like to start spreading my money around so we don't have it all tied up with BW.

Thanks all

 

[Peter_Tersteeg]

No lender will capitalise stamp duty and other costs, the best you can expect is to capitalise LMI.

Even then, most lenders only cap LMI if it's owner occupied and only to a maximum of 97% LVR (LMI on 95% loans often comes to about 4%). I believe BankWest goes above 97% and I'm fairly sure there's another lender who does (ING did once, perhaps Adelaide Bank).

 

[Mick C]

Up to 97 in total- ING, CBA, St George, Bank of Melbourne, Bank SA, Westpac, Suncorp, Gateway Credit union, Bankwest, Me bank, Most credit union....etc..

Up to 100% - Adelaide bank, Wide bay credit union, Liberty etc...

Some 95% LVR are for Owners occupied purchase only, depending on lender and LMI provider.

As pete mentioned - can't add in the Stamp duty generally speaking...just the LMI.

Cheers

 

[tobe]

adelaide will, but only for PPOR. as Pete said its mostly a game of 97 minus LMI, rather than 95 plus LMI.

You need to decide whether concentration risk outwieghs the cost of capital for that extra 1 or 2 %.........

 

[jonmardell]

Was hoping for some advice from the experienced brokers, investors. Are there lenders outside of BankWest that will capitalise LMI, stamp duty etc, with a 95% loan? We've just secured a 3x2 in Stafford, Brisbane for $437k and our broker is saying that BankWest (with whom we have 2 properties with already, plus our transaction accounts etc) are the only ones that will capitalise LMI etc and therefore are the ones to go with. I however would like to start spreading my money around so we don't have it all tied up with BW.

Thanks all

there is a product through the mortgage managers that use adelaide bank that you can get 95% plus 20K credit card at home loan rates. Downside is the credit card payments are high but would allow you to use this for stamp duty ect. Servicing has to be strong.

 

[Aaron_C]

Lenders without a DUA like Adelaide Bank and Bankwest can do it. Their LMI premium is higher but I guess if you want full cap you won't really care anyway.

 

[UrbanPlanner]

Thanks guys that makes sense now. Cheers!

 

[Rolf Latham]

Be aware that some of the lenders mentioned may cap to 97% BUT have other issues such as 10 ( and more equity or gen savings need), and some will only allow PI.

Who are your credit cards with ?

t
arolf

 

[Jamie M]

Adelaide will do it on P&I and servicing needs to be quite strong.

ING used to do it - but now cap at 97% inclusive of LMI.

Did you require LMI with your other Bankwest loans?

Cheers

Jamie

 

[UrbanPlanner]

Be aware that some of the lenders mentioned may cap to 97% BUT have other issues such as 10 ( and more equity or gen savings need), and some will only allow PI.

Who are your credit cards with ?

t
arolf

No credit cards, just all money going in and out of a series of bankwest accounts. Why's that? We have been meaning to arrange a credit card to make better use of our offset account but haven't done any research

Jamie, our PPOR loan we paid LMI as we only had 10% deposit. Our current IP was a 95% lend plus LMI also with BW, using equity from PPOR.

More on our situation FWIW

PPOR - owe ~$380k (plus $38k equity loan), bank val in Dec $540k but have done bathroom, laundry, toilet reno since then so I dare say it's now higher.

IP1 - $352k IO Loan, bank val in Dec $395k.

 

[Marty McDonald]

No credit cards, just all money going in and out of a series of bankwest accounts. Why's that? We have been meaning to arrange a credit card to make better use of our offset account but haven't done any research

Jamie, our PPOR loan we paid LMI as we only had 10% deposit. Our current IP was a 95% lend plus LMI also with BW, using equity from PPOR.

More on our situation FWIW

PPOR - owe ~$380k (plus $38k equity loan), bank val in Dec $540k but have done bathroom, laundry, toilet reno since then so I dare say it's now higher.

IP1 - $352k IO Loan, bank val in Dec $395k.

Sounds like your exposure with BW would be too high for my liking with another IP purchase.

For investment most lenders will only go to 95% now not even 97%. Some exceptions. You need to plan carefully for the next one ..

 

[HLE]

It is possible

I would suggest Adelaide bank would be the best option for this.

 

[tobe]

I would suggest Adelaide bank would be the best option for this.

cept they only do 90% for investment.....

 

[ardi]

Was hoping for some advice from the experienced brokers, investors. Are there lenders outside of BankWest that will capitalise LMI, stamp duty etc, with a 95% loan? We've just secured a 3x2 in Stafford, Brisbane for $437k and our broker is saying that BankWest (with whom we have 2 properties with already, plus our transaction accounts etc) are the only ones that will capitalise LMI etc and therefore are the ones to go with. I however would like to start spreading my money around so we don't have it all tied up with BW.

Thanks all

Not sure if its 100% correct (might be worth getting legal advice). I read in an IP mag about a guy who once his offer was accepted he would add the stamp duty amount on top of the price of sale and have a clause put into the contract that the vendor pays the stamp duty. That way the bank will finance the purchase price, unknown to them that they are also financing the stamp duty.

Anyone know if this is legal and how hard it is to do??

 

[Rolf Latham]

Not sure if its 100% correct (might be worth getting legal advice). I read in an IP mag about a guy who once his offer was accepted he would add the stamp duty amount on top of the price of sale and have a clause put into the contract that the vendor pays the stamp duty. That way the bank will finance the purchase price, unknown to them that they are also financing the stamp duty.

Anyone know if this is legal and how hard it is to do??

Most lenders or valuers will pick the special condition from the contract.

Some would say do it with a lender that does no val and relies on contract.

Not a deal that we would consider doing for a client because it is on the grey side

Ta

Rolf

 

[Rolf Latham]

Was hoping for some advice from the experienced brokers, investors. Are there lenders outside of BankWest that will capitalise LMI, stamp duty etc, with a 95% loan? We've just secured a 3x2 in Stafford, Brisbane for $437k and our broker is saying that BankWest (with whom we have 2 properties with already, plus our transaction accounts etc) are the only ones that will capitalise LMI etc and therefore are the ones to go with. I however would like to start spreading my money around so we don't have it all tied up with BW.

Thanks all

Some ip advisers will tell you to do it all with bwa, and cross them all as we'll.

Doesn't make intuitive sense but some of these people are paid very very large sums of money to dispense such advice ................

Ta
Rolf

 

[Terry_w]

Not sure if its 100% correct (might be worth getting legal advice). I read in an IP mag about a guy who once his offer was accepted he would add the stamp duty amount on top of the price of sale and have a clause put into the contract that the vendor pays the stamp duty. That way the bank will finance the purchase price, unknown to them that they are also financing the stamp duty.

Anyone know if this is legal and how hard it is to do??

Could technically be fraud if not disclosing to bank. But will probably be ok if no money is being rebated. Just disclose by giving bank whole contract.