Mortgage Brokers - is it possible...

...to still borrow 100% or higher of purchase price?

I have great servicability but not enough cash/equity for another purchase and after some searching on the net haven't really been able to find any lenders who will lend more than 95%.

Scenario is this:

Purchased house in April 09 - CF+
it is somehow crossed with a unit I purchased a few years ago also CF+ both with ANZ so I didn't have to pay mortgage insurance when borrowing more than 80%. $10,000 available in an interest offset account.

Two negative geared properties with ME not crossed which may have some potential for another refinance although the last was done in December. I have around $20,000 equity available for redraw in this account.

I'm looking at purchasing a slightly negative or neutrally geared property (Darwin) for up to $500,000 ish. I have around $3000 available each month for servicing the loan and extra costs of the property, and while I could just save up for a few more months I'd like to explore all options (I want my marshmallow NOW) :D.

Does anyone know of a relatively mainstream bank/building society that lends 100% or more without using another property as security? I would be looking at using a mortgage broker for the purchase but first wanted to find out if it was possible before wasting anyone's time.

Thanks in anticipation.
 
Thanks guys, I didn't think so.

Guess I'll just have to suck it in and start saving hard. Hopefully by the time I'm ready the FHOG boost will be history and prices will settle a bit.
 
Hi Nat,

There are still 95% Loans out there. If you can save 3k a month, you may be there quicker than you think. Especially if you think there may be more equity in your two uncrossed properties.

Considering most approvals with the banks are taking a bit of time these days, by the time you find an MB, get all of your docs together, submit the loan etc....a few months can pass anyway.

I would advise that you don't give up, find a broker and get some real figures done.

Regards JO
 
Hi nat

95% with or without LMI capitalised to the loan is still readily available for owner occupied or investment

Have you considered taking a Supplementary Loan / Loans with ANZ up to 90%incLMI (their limit) to release some equity there?

A bit of tax deductible mortgage insurance here or there shouldn't hold you back when you are wanting to move forward

If you have the will there is always a way

Cheers
Kristine
 
Thanks for the additional information everyone. I will certainly not be giving up and will be speaking to ME to arrange a reval.

Kristine, I don't want to touch the two properties with ANZ as I like to spread my risk and there is a strange arrangement with them at the moment (don't ask me what as I have no idea how it happened) where the way the loans were structured looks like I have only 80% LVR and didn't have to pay mortgage insurance where in fact I have 90% LVR. Any change to this structure will mean paying mortgage insurance I don't have to.

I'm happy to pay LMI on the new loan but don't want to pay it for an existing loan. I seriously doubt my two properties with ANZ will have risen much in value since April anyway.

I'll definately be speaking to a mortgage broker to see what can be done in the near future.
 
95% loans are available. Suncorp is a good option for FHOG as they require 3% genuine savings as opposed to 5% which is the standard.

You can cap the LMI as well.
 
Well, great news for me. After giving ME a call I found out that they will lend up to 95% - so I have around $90,000 in equity sitting around that I can use. Just have to fill out the "Loan Top-up" application form, pay some LMI and hopefully Bob's my uncle.

As Kristine said, where there's a will there's a way!
 
Re: Suncorp 95%

Yea Suncorp are doing them, so is BankWest, Liberty, few others that I can't think of right now.

Some of the lenders are doing 95% for existing customers as well.

You have to have clean credit however, no defaults, plus all the other "right" box'es need to be ticked.

Regards,
 
Be careful with defaults, I had one today that they knocked back due to a $100 telco default paid one month after listing. Was due to a change of address that the bill went unnoticed, so pretty reasonable explanation.

However, the policy was unable to be changed.

It will work out fine for the clients, but it's an example of the insurers not wanting to apply common sense and sticking to policies.
 
Thats been my experience as well, I went to a credit scoring workshop with Genworth and NAB and Genworth will not (to my understanding) take any defaults.

Regards,
 
Yes anything with a default is getting harder by the day to get a sensible interest rate.

Just had one approved by one of the big 4 on a default of 3 weeks (usual story client moved address and forgot to notify them) however they refused to offer some of their products and are only prepared to look at the deal on a P & I basis on their Base rate product.
 
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