Hi Everyone
I have been looking into 95% LVR loans with LMI capitalised and have read some relevant threads on SSF. I am aware of just how difficult it can be to qualify for these types of loans, but for a variety of reasons this is our requirement. Other necessary criteria include being able to (initially) do a land loan (~$210K) plus a construction loan (~$240K) for a H&L package, I/O, and prefereably to be able to merge the two loans once the construction loan settles. I would really appreciate some feedback on lender options for this type of loan.
CBA, WBC, ANZ and NAB are all out, either because they don't capitalise LMI or I'm not an existing customer. So that brings the likes of BankWest, ING, RAMS, Suncorp, etc.. onto the radar. BankWest's Mortgage Shredder looks like a solid product but has a relatively higher IR at 7.3% var. By comparison RAMS, for example, has a competitive IR but a 1% early repayment fee in the first 3 years, however I'm not sure whether this is a deterrent enough to avoid such a lender. We wouldn't look to sell the IP but we would likely look to release equity (eg. via a LOC) during this period. If a current lender's policy made this difficult we would look elsewhere, so I guess this is possible in the first 3 yrs. Being able to link a 100% offset account and limit ongoing fees is also a consideration but not as critical as other criteria.
I have only ever banked with members of the Big 4 and would be interested in people's experience or opinions with secondary lenders who offer 95% plus LMI cap. Also are there any hidden risks that I have overlooked? Any feedback greatly appreciated.
Thanks
Angela
I have been looking into 95% LVR loans with LMI capitalised and have read some relevant threads on SSF. I am aware of just how difficult it can be to qualify for these types of loans, but for a variety of reasons this is our requirement. Other necessary criteria include being able to (initially) do a land loan (~$210K) plus a construction loan (~$240K) for a H&L package, I/O, and prefereably to be able to merge the two loans once the construction loan settles. I would really appreciate some feedback on lender options for this type of loan.
CBA, WBC, ANZ and NAB are all out, either because they don't capitalise LMI or I'm not an existing customer. So that brings the likes of BankWest, ING, RAMS, Suncorp, etc.. onto the radar. BankWest's Mortgage Shredder looks like a solid product but has a relatively higher IR at 7.3% var. By comparison RAMS, for example, has a competitive IR but a 1% early repayment fee in the first 3 years, however I'm not sure whether this is a deterrent enough to avoid such a lender. We wouldn't look to sell the IP but we would likely look to release equity (eg. via a LOC) during this period. If a current lender's policy made this difficult we would look elsewhere, so I guess this is possible in the first 3 yrs. Being able to link a 100% offset account and limit ongoing fees is also a consideration but not as critical as other criteria.
I have only ever banked with members of the Big 4 and would be interested in people's experience or opinions with secondary lenders who offer 95% plus LMI cap. Also are there any hidden risks that I have overlooked? Any feedback greatly appreciated.
Thanks
Angela
