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From: Mike .


professional loan packages?
From: Ed ([email protected])
Date: 8/24/00
Time: 2:37:05 PM

I've recently heard of the above packages, which allow you to borrow up to 90% without mortgage insurance. Does anyone know if those in the computer industry can benefit from these?

Thanks in advance, Ed
 
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Owen

Reply: 1
From: Mike .


Re: professional loan packages?
From: Owen
Date: 8/24/00
Time: 5:01:42 PM

Hi Ed,

The Professionals Choice Package from the NAB is for those earning over $75k per year and i believe this offers what you are looking for. You have to open at lease 3 accounts and have $150k in loans with them but you get unlimited transactions for free, free VISA Gold card and 0.5% off the standard variable rate for loans. Not bad.

I have the Investors Choice Package which is the same but for those unfortunates like myself who don't earn $75k a year. The normal 80% LVR applies in this case but if you are prepared to cross-collateralise then it's not an issue. Give them a try.

Owen
 
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JohnB

Reply: 1.1
From: Mike .


Re: professional loan packages?
From: JohnB
Date: 8/24/00
Time: 7:48:40 PM

The CBA offers something similar called "Personal Addvantage"

Similar discounts of 0.5% of some selected home loans and 0.15% discount on fixed interest loans. You get a CBA mastercard or visa gold credit card which includes some benefits like travel insurance.

You need total holdings of at least $250,000 initially and $200,000 on an ongoing basis.

Annual fee is $330 which covers all loan fees (regardless of the number of loans) and annual credit card fees. Any new loans have no fees and no mortgage insurance.

I am fairly happy with this setup so far. Only time will tell.

Cheers, JohnB
 
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DuncanM

Reply: 1.1.1
From: Mike .


Re: professional loan packages?
From: DuncanM
Date: 8/25/00
Time: 10:15:43 AM

John,

Are you SURE that new loans dont have mortgage protection insurance?.. surely if you go above an LVR of 80% you're going to get stung with it..

A call to CBA this morning seemed to confirm this.

Duncan.
 
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JohnB

Reply: 1.1.1.1
From: Mike .


Re: professional loan packages?
From: JohnB
Date: 8/25/00
Time: 2:48:56 PM

Duncan, I didn't explain myself well enough.

My first loan with the CBA required mortgage insurance (over 80%). However, the CBA allowed me to borrow 100% without mortgage insurance on my second IP. Each subsequent loan will be without fees or mortgage insurance. That is, when you have paid mortage insurance once you don't have to pay it again regardless of whether you are over 80% or not.

I hope that's clearer.
 
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Geoff W

Reply: 1.1.1.1.1
From: Mike .


Re: professional loan packages?
From: Geoff W
Date: 8/25/00
Time: 7:21:25 PM

Hi,

I'm not sure if there's a difference between banks, or a difference of understanding.

My bank will lend me 110% of my next property, not a problem. HOWEVER, they will not lend me more than 80% of my total property value - my house + IPs. They are happy to revalue all properties - a drive-by valuation was enough this time around to give me what I wanted, but 80% over total value requires mortgage insurance.

Some time ago, a payment of $something like $5,000 cash extra saved me $3,000 in mortgage insurance,

Geoff W
 
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JohnB

Reply: 1.1.1.1.1.1
From: Mike .


Re: professional loan packages?
From: JohnB
Date: 8/25/00
Time: 8:24:14 PM

Hi Geoff

There must be a difference between banks then. I borrowed 100% of my 2nd IP without mortgage insurance. Mortgage insurance was paid, however, on my first IP in which I borrowed 90%.

Maybe my bank manager is nicer than yours or I have a better "poker" face than you!!!
 
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