Finance

[WebBoard]

From: Mike .


investment loans
From: steverm
Date: 8/3/00
Time: 10:57:32 AM

Can anyone help?

I have recently been knocked back for a loan (from mortgage lenders insurance not the bank) because most of my deposit is or has been held in shares for the last 6 months and not gaining the piddly little 1-2% interest that the banks offer, along with the fees and charges. Is there any way around this? It makes more sense to me to have a regular savings plan that makes more money through shares than what the bank can offer.

 

[WebBoard]

Pierre

Reply: 1
From: Mike .


Re: investment loans
From: Pierre
Date: 8/3/00
Time: 10:02:52 PM

Try a new lender. There are four firms that underwrite LMI. Maybe the one that your lender uses didn't like the way you demonstrated your 6 months savings, but another might.

Shop around until you win.

I bought my first home with a motorbike, a $10000 loan from my Grandfather which I received after I placed the offer, $10000 worth of AMP shares that I had been given (by them) a month after I placed the offer, and $5000 in an AMP investment I had held for a while.

A mate of mine bought a house with $1000 on his credit card.

Geoff1 bought a house with furniture and car loan for $2000 and $5000 respectively.

Find a Mortgage Broker that can work wonders for you like I did and my mate did.

Go speed racer go.

Pierre

 

[WebBoard]

Jane P

Reply: 1.1
From: Mike .


Re: investment loans
From: Jane P
Date: 8/3/00
Time: 3:59:49 PM

Hi Steve

Have you tried an LOC (Line of Credit) using the equity in your existing home or other IPS?

Most lenders have these facilities and are set up as follows:

The lender will lend you up to 80% of the total value of your home/IP - meaning that as long as you have paid down some of the loan, or allowed capital gains to work its magic since you bought the property, you will have greater equity and be able to use this money as a deposit (say for the 20% deposit).

Then go to another lender for the other 80% and - hey presto - no mortgage insurance because the 2nd lender thinks you're brilliant in having the 20% ready and waiting.

The LOC, however, is charged at a slightly higher interest rate for the privilege and there are conditions so give them a ring.

Cheers Jane P

 

[WebBoard]

Steverm

Reply: 1.1.1
From: Mike .


Re: investment loans
From: steverm to Jane P
Date: 8/4/00
Time: 1:17:02 AM

I am 20 and just starting. I do not own my own home yet. So far, I have around $25k as a deposit but that is growing every week. This one small setback will not put me off.