Lo Doc LVR 85% to 90% still Exist??

[annunaki]

Hello All

I attended a mini property group in Adelaide (group of friends) and a good friend of mine who is a member here told me about how great this forum is, I started browsing last night and he was right.. Excellent source of Info..it's got that at home feel..

I'm an old school investor, with an old school mindset about debt...Im trying to change my mindset and keeping an open mind, I own my own home and another investment property in Glenelg SA outright.

My biggest mistake > pay existing debts before reinvesting...if i only knew 15 years ago what I learnt in the last 2 years...hey at least now i know and wont make the same mistake...

My first post question..

I was reading a magazine and one of the small articles mentioned Lo Doc 85% to 90% for residential loans, I thought they are no longer available...

Anu,

 

[Rolf Latham]

yes

but what rate and fees would u like to pay

6 mths ago, thats sort of lvr was still part mainstream lender

Today its very much non conforming loan, or private money

tarolf

 

[Rolf Schaefer]

Hi Anu,
with so much equity available you should better proceed as such:

• Access equity in your fully paid of IP
• Use this equity for deposit and costs
• get separate 80% loan against new property

 

[Nth Brisbanite]

Anu, these type of loans are still around but they come at a cost ie 12% plus interest rates and outrageous fees. See my thread 90% lo doc at reasonable interest rate

I'd love a 90% lo doc loan at an interest rate below 9.5% but with the exit of the RAMS product, I'm pretty sure it doesn't exist anymore.

 

[Qlds007]

Nth Brisbanite - Give it a week or two and the opportunity to obtain a lodoc 80 at less than 9.5% maybe a thing of the past.

 

[annunaki]

Thanks All,

sorry for the late reply, PC was at the PC Doctors

So i guess the Credit Squeeze is not over..

I guess 12% is not bad if you have to make happen.

Thanks Rolf..I'm still deciding what to do...

One discussion with few mates was about LOE.. with the current credit squeeze would be hard to implement..

 

[annunaki]

Hi Richard

So mainstream Lo Doc offerings will also be declining....

Ohh no... bad timing for Investors..

 

[Nth Brisbanite]

Nth Brisbanite - Give it a week or two and the opportunity to obtain a lodoc 80 at less than 9.5% maybe a thing of the past.

All of the main lenders are still lending at 80% LVR for lo docs with fixed rates below 9.5%. Qlds007, is there something you know that others don't, or is it just a "hunch" based on what is going on in the USA?

 

[Qlds007]

Annunaki

Yes the number of discounted lodoc 80 loans is disppearing quicker than you can say knife.

Only 2 of the largest 8 banking lenders now offer a standard variable rate discount for lodoc and not all of these fixed rate products are less than 9.5%.

Buckle if for a mini credit squeeze initiated by the Banks themselves for their own benefit.