I had my unit valued just yesterday; it came in @ 230K. I owe 163K. I was going to get a LOC for deposits on cheep property in NSW under 100k.
The bank has said that they will lend (in equity LOC) 21K to take my LVR to 80% or 44K to take it to 90% but I will have to pay LMI.
I think from what ANZ was saying is that I will have to have a deposit to get this LOC also. How can I have a deposit to access my deposit? I may be wrong about understanding this correctly. ANZ also talked about my closing costs I would need to come up with.
Is this correct?
Just learning here but I thought that I would be able to access the difference between what I owe and what I own. EG: 77K, it wouldn’t require any sort of deposit and LMI was irrelevant. NB I payed LMI on the original loan for the unit.
I thought that I can get a LOC and use it for whatever I want. I could but a whole bunch of shoes if I liked (which I wouldn’t) but my meaning is that the bank shouldn’t care or won’t know what I draw down this money for.
It sounded like because she knew I want it for deposits she was trying to tell me that I can’t use this money for deposit and closing cost, insurance , whatever.
Are there questions or things I should stipulate to the bank that I require? Am I asking the wrong questions?
The way I wanted to structure it was.
Get a LOC, use it as a deposit on another house.
Get a third loan through another bank for the balance of the property.
So I would end up with my original unit loan. (separate)
A LOC loan (deposit) and a third party loan (balance) and have the rent cover the majority of these 2 loans.
Using the LOC for further deposits or as a buffer for things that come up.
Any ideas ?
Thanks in advance
The bank has said that they will lend (in equity LOC) 21K to take my LVR to 80% or 44K to take it to 90% but I will have to pay LMI.
I think from what ANZ was saying is that I will have to have a deposit to get this LOC also. How can I have a deposit to access my deposit? I may be wrong about understanding this correctly. ANZ also talked about my closing costs I would need to come up with.
Is this correct?
Just learning here but I thought that I would be able to access the difference between what I owe and what I own. EG: 77K, it wouldn’t require any sort of deposit and LMI was irrelevant. NB I payed LMI on the original loan for the unit.
I thought that I can get a LOC and use it for whatever I want. I could but a whole bunch of shoes if I liked (which I wouldn’t) but my meaning is that the bank shouldn’t care or won’t know what I draw down this money for.
It sounded like because she knew I want it for deposits she was trying to tell me that I can’t use this money for deposit and closing cost, insurance , whatever.
Are there questions or things I should stipulate to the bank that I require? Am I asking the wrong questions?
The way I wanted to structure it was.
Get a LOC, use it as a deposit on another house.
Get a third loan through another bank for the balance of the property.
So I would end up with my original unit loan. (separate)
A LOC loan (deposit) and a third party loan (balance) and have the rent cover the majority of these 2 loans.
Using the LOC for further deposits or as a buffer for things that come up.
Any ideas ?
Thanks in advance