Finance for IP in Moranbah- Brokers/Moranbah investors Please advise

[Nona]

We want to buy an investment property in Moranbah (4744) but don't have 20% equity, are there any LMI companies that will insure a 90% or 95% (preferrably) loan in this town? If so who are they and which lenders use them? Trying to ascertain whether there is any hope of me pursuing a purchase in this town.

Has anyone purchased in Moranbah with less than 20% equity?? If so how did you do it and what Broker/ Bank did you use.

Any feedback most appreciated.

 

[Bradsdad]

It's outside Genworths guidelines but that doesn't mean it's a definite "NO" just a we'll look at it and then probably say NO.

ANZ maybe an option as they self insure and claim to have no blocks on postcodes.

I have no idea where this place is but I do know that places like Aireys Inlet are a little on the nose with lenders.

 

[Rolf Latham]

90 % generally no issue

95 would be a struggle unless the loan amount is under 500k and the deal is very strong.....meaning u dont need the rental income to service the loan an you dont actually need a 95 % er but choosing to use one

ta
rolf

 

[Nona]

Thanks for input. We should be able to do 10%, it just won't be genuine savings - does this matter, I know for 5% loans it has meet the savings criteria. Purchase price will be approx $450k but we will need to rent it to make mortgage payments on an ongoing basis, we already have 2 properties that chew up some salary. So looks like the 95% LVR won't be available to us.

 

[Rolf Latham]

that will be tough I suspect

Non gen savings at 90, there are only a couple that will look at it even in metro.

Where will the 10 % + costs come form ?

ta
rolf'

 

[Nona]

Mainly tax return refunds, selling shares (20k) and perhaps selling a car and motorbike ($7k). Can I feed a bank account with these funds over 3+ months to satisfy being savings? Or can we save all our salary and use these funds to live?

 

[HLE]

Selling shares can be considered as genuine savings by most lenders. You must have held the shares for at least 3 - 6 months.

ANZ is unlikely to do the loan. Technically they have no location restrictions however they assess the valuation and if there are not enough comparable sales or the area is speculative then they rarely approve the loan.

 

[Nona]

Thanks for your help guys. I just spoke to the Moranbah ANZ branch and 95% LVR is no problem for a property purchase in Moranbah, and I can use the sale of shares as a deposit.

FYI- Moranbah is in Central QLD and is a mining town. We live and work here and makes sense for us to invest here aswell.

 

[Rolf Latham]

Hi

ANZ as a base rule for 95s want u to be an existing credit client ?

ta
rolf

 

[Nona]

Oh, that might be a problem, she didn't mention anything about this. I'll check it out.

 

[Rolf Latham]

Hi Nona

I suspect that this is only the first bit " they didnt say that or this"

As has already been mentioned, if the valuer places a 4 in any of the risk rating categories, 95 probably wont happen anyways, and a 90 % er is then also shaky.

There are lenders such as BWA that will do 95 % to new clients, but I reckon you have only a little chance of getting it past their LMI.

ta
rolf