Hi Aikido,
Heres some info from the MSN forum. Hope this helps,
Jamie.
Hi all, especially Peter,
A major bank is now offering a genuine 100% home loan for home buyer and investors. And this means if you are buying a $250K house, the bank will give you $250K. NIL deposit. NO cross securitization. NONE. NADA.
To qualify:
1. The security must be geogrpahically within 50k's from major city and 25k's from satellite cities.
2. Investors must have minimum net worth of $175K and one applicant must have gross income of at least $50K. Question: If the investor has $175K in net asset, why will he/she try to obtain a 100% homeloan? Answer: The investor might feel better protected (psycologically that is) if his own home is not used as security for the investment loan. Or, two investors might want to go partners on a venture and neither wants their own properties on the line, and many other scenarios.
3. With construction loans, and where FHOG (First Home Owners GRant) is being used to pay some of the cost, the LVR at land draw can go up to 107%, with the FHOG reducing the loan bacl to 100% at slab stage.
HOW GOOD IS THAT?
The loan assessment qualification process is more thorough than for standards loans. The bank will be relying on the borrowers' willingness and capacity to repay (as opposed to reliance on equity). there will be more emphasis on repayment history and employment stability.
Where no credit card exists, it will be assumed that you have a limit of $3,000.
Who wants this loan?
1. People who have no savings but has the income to service the loan. The cappucino and cafe latte society, for instance.
2. Investors who want to go joint ventures with others and neither are willing to put their own properties on the firing line.
3. People who have the income but can't wait for the existing properties to increase in value. Maybe having bought a house at 95% last month, they have no more cash to buy another. With this loan, provided you can show serviceability, you can purchase the next one pretty much straight away. You will still need some money for the cost of the purchase (e.i., stamp duties, etc).
Note that a Loan Extension Fee is payable. For a 100% loan, this will be 2.5% of loan amount. The fee takes the place of Lender's Mortgage Insurance.
This product is being rolled out next month natyionally. But I am accredited write the loan now. Happy house hunting.
Angelina
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Recommend Message 12 of 26 in Discussion
From: angelina Sent: 5/02/2003 1:59 PM
Hi all,
Some answers only as I am in a hurry to get to an appointment. Here goes:
Available for construction, house and land packages and strata units and townhouses.
Key benefits of the loan: Redraw facility, mortgage offset facility, choice of fixed or variable loan, available for owner occupier or investors, interest in advance repayment option for investors.
Establishment fee: $750 including legals, valuation on one property and fee free savings account (when nominated for the loan repayment).
Savings history required. Minimum of 2.5% savings accumulated over a three month period (for new houme owners)
Interest rates: A margin of .30% over the standard variable and fixed rate applies.
Loan Extension Fee: (takes the place of LMI) equals 2.5% of loan amount. minimum of $500.
Repayment:s weekly, fortnightly, monthly. Interest only repayment up to three years allowed fopr investment only.
Now beautiful people stop asking questions!!! Wait until next month and you can walk into a St George branch and they will help you. I warn you you have to be really earning a good income to qualify. Good income is the operative concept.
Chow.
Angelina
