CBA 40 sqm 90% - Existing Client 95%

Hi

CBA will do a 40 sqm 90% loan for me. If I were an existing client
they would go to 95% 40 sqm. You need to be a existing client for 3 months.


What would you do? Go for the 90% loan. Or become a client of CBA but wait a bit longer so as to get the 95% loan.


The other thing is things might change. CBA might not offer the same deal in 3 months time. There might not be a 40sqm 95% loan or a 90% loan. CBA might change the rules and make you wait 6 months as an existing client before you can get the deal. There are all sorts of scenarios.


Maybe the 90% deal isnt such a bad option. I dont have to pay the LMI, its capitalized. I have enough equity in my ppor property to do the 90% deal. I dont have to fork out one cent of my own cash to do it.


My LVR with the 95% loan is 84% - $250 K loan

When I have some time, I'll work it out at 90%
 
As far as I know it is 6months as an existing customer at the moment. This is what we were told 2 weeks ago in the branch and again yesterday by our mortgage broker.

Also best to be aware of your servicability with the LMI'ers themselves. We have been assured on numerous occaisions that the banks are happy to finance us for large amounts, however yesterday (at the brokers) we discovered that the LMI policies have changed and the amount we can be insured for is less then what the banks are happy with - hence no loan, unless we come up with the full 20% deposit. This may not affect you at all, but is something to keep in mind.

P.S. being a 'client' of the CBA means having an exiating credit card or loan with them - a personal savings account does not count.
 
Id buy a 50 sq me place instead ?

sounds dumb I know, but with the ready toughening of the lmi folk, these smaller properties will be yet harder to finance , thus limiting the available market to those with 20 % deposit

ta
rolf
 
As far as I know it is 6months as an existing customer at the moment. This is what we were told 2 weeks ago in the branch and again yesterday by our mortgage broker.

P.S. being a 'client' of the CBA means having an exiating credit card or loan with them - a personal savings account does not count.

Cool thanks, I didnt know
 
Id buy a 50 sq me place instead ?

sounds dumb I know, but with the ready toughening of the lmi folk, these smaller properties will be yet harder to finance , thus limiting the available market to those with 20 % deposit

ta
rolf

My budget is $220 K property 5 - 10 k from cbd. Gotta be a 1 bed. Not many 1bed > 50 sqm under $220 K. I'll be seeing mb on Thursday, hopefully I can get a deal. The 90% one with CBA looks the best so far.
 
Hi I have thought about buying further out in the past, but what i want is an inner city property in a good suburb which has shown good capital growth in the past.
 
Kim5, just bear in mind that it might be easy for you to buy this property (and congratulations for wanting to do so) BUT if you ever want (or need) to sell, then your potential pool of purchasers will be somewhat diminished. If they are not cash buyers they will need to get finance and that might not be so easy.
 
If I were you I would save longer and / or wait for more growth in your existing property.

A < 50 square metre property is a shoe box, with a tiny tiny fraction of buyers.

If and when it does go up in value you will go through this whole process to refinance and extract equity.

Buy something more 'average' - i.e. standard 1 bedder (65 sq mt +) or 2 bed.
 
I personally like one bedroom flats - I want one in an inner city area in Adelaide (for the kiddies when they leave home, no rush), and the best thing about them is how little they go up - they were worth low $200s in 2005 when I lived there, and 4 years on they are worth mid $200s. Makes it SO much easier to save up for one.

Meanwhile terrace houses and standalone houses in the same suburb are all ranging from low $700s to mid $1M. No way in hell I'm ever going to get one of those, but the little units on the same street are doable :)
 
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