Hi Guys,
I'm keen for peoples thoughts on how best to proceed with finance on my next 2 purchases.
FYI - I work for one of the big 4 (In IT, not finance or banking) and as such don't pay loan setup costs, receive a significant discount on interest rate and generally don't need to pay LMI costs.
- I currently have 1 loan with this bank on my first IP.
- I do NOT have a PPOR
- I have a Blacktown property due to settle in the next 6 weeks.
- I also have plans to buy a property in the next 3 months. This is a DHA property with about 3 years left on the lease from my parents in Rozelle. I believe I can pick this up for about 200k below market value at 900k.
I have pre-approval with CBA (my employer) for the Blacktown property and if I financed through them I would receive all the benefits mentioned above, allowing me to go to 90% LVR or possibly higher without paying LMI...this would be a handy way to have some extra cash to put towards the Rozelle purchase.
My Questions are:
- Should I consider using another lender for the Blacktown settlement to allow me to then take advantage of higher saving on LMI by using CBA for the Rozelle purchase. This also helps me spread my loans over 2 lenders.
OR
- Should I settle my existing pre-approved loan for Blacktown with CBA to get it done (nice and easy), save the expense of LMI which can go towards the Rozelle purchase instead and then look at using another lender for the Rozelle purchase.
I am leaning towards the latter, and once the Rozelle property is valued, if I am buying 200K below market, I shouldn't have too many dramas obtaining a loan through another lender.
Have I overlooked anything here?
Am concerned that some lenders may not value the Rozelle property at it's proper market value due to the higher risk of the 3 remaining years on the DHA lease. If so, this could potentially leave me in a position where I could come up short on purchase costs.
I hope the above makes sense...I realise there are a few moving parts to this equation. I'm happy to clarify on any points and provide more detailed numbers if required but would be very keen for people to call out any gotcha's or ideas\suggestions on best way to proceed.
Cheers
Andy
I'm keen for peoples thoughts on how best to proceed with finance on my next 2 purchases.
FYI - I work for one of the big 4 (In IT, not finance or banking) and as such don't pay loan setup costs, receive a significant discount on interest rate and generally don't need to pay LMI costs.
- I currently have 1 loan with this bank on my first IP.
- I do NOT have a PPOR
- I have a Blacktown property due to settle in the next 6 weeks.
- I also have plans to buy a property in the next 3 months. This is a DHA property with about 3 years left on the lease from my parents in Rozelle. I believe I can pick this up for about 200k below market value at 900k.
I have pre-approval with CBA (my employer) for the Blacktown property and if I financed through them I would receive all the benefits mentioned above, allowing me to go to 90% LVR or possibly higher without paying LMI...this would be a handy way to have some extra cash to put towards the Rozelle purchase.
My Questions are:
- Should I consider using another lender for the Blacktown settlement to allow me to then take advantage of higher saving on LMI by using CBA for the Rozelle purchase. This also helps me spread my loans over 2 lenders.
OR
- Should I settle my existing pre-approved loan for Blacktown with CBA to get it done (nice and easy), save the expense of LMI which can go towards the Rozelle purchase instead and then look at using another lender for the Rozelle purchase.
I am leaning towards the latter, and once the Rozelle property is valued, if I am buying 200K below market, I shouldn't have too many dramas obtaining a loan through another lender.
Have I overlooked anything here?
Am concerned that some lenders may not value the Rozelle property at it's proper market value due to the higher risk of the 3 remaining years on the DHA lease. If so, this could potentially leave me in a position where I could come up short on purchase costs.
I hope the above makes sense...I realise there are a few moving parts to this equation. I'm happy to clarify on any points and provide more detailed numbers if required but would be very keen for people to call out any gotcha's or ideas\suggestions on best way to proceed.
Cheers
Andy