Most popular Home Loan products at the moment

[kimba88]

Another home loan i found was cua fresh start variable home loan http://www.cua.com.au/personal-banking/home-loans/i-want-to-refinance
It seems to have the same sort of features as my ANZ package and the Suncorp package. What are CUA like when getting equity, etc?

 

[Shahin_Afarin]

Using a lender like NAB hurts because they using benchmark rates for existing debt however a lender like Macquarie will still use actual rates even for existing Macquarie debt provided that you have had your loan with them for 6 months.

Im constantly seeing people use a lender like NAB (with LMI) too early on in their portfolio which is very frustrating.

 

[Shahin_Afarin]

Another home loan i found was cua fresh start variable home loan http://www.cua.com.au/personal-banking/home-loans/i-want-to-refinance
It seems to have the same sort of features as my ANZ package and the Suncorp package. What are CUA like when getting equity, etc?

You are going to get no benefit from refinancing the ANZ debt because you have paid quite a bit of LMI. Call ANZ discharges, threaten to leave and they will drop their rate. ANZ will not want to let you go - have are losing business in droves.

 

[Shahin_Afarin]

Sorry if this is slightly off topic but does anyone know if any bank still offering 85% no LMI at the moment?

You can get LMI waiver to 90% LVR if you are:

1. Medico
2. Accountant (subject to conditions)
3. Engineer (subject to conditions)
4. Lawyer
5. Politician
6. Celebrity
7. Athlete
8. Chuck Norris

 

[Rolf Latham]

You can get LMI waiver to 90% LVR if you are:


8. Chuck Norris

what % age of Chuck Norris

ta
rolf

 

[albanga]

Hey Kimba,

From what I am reading it just sounds like your just after a low rate but the brokers on here are trying to ask you what your goal is because that is critical.

Why are you even buying property? I assume it's to make money/fund retirement. If so do you plan to buy 2 properties and then sit on those and wait for capital growth or do you want to keep purchasing more properties? If option 1 then it's not as important and maybe chasing the cheap rate is fine but if you want to build a portfolio with a number of properties then your willingness for the cheapest rate and not the best products for the future will compromise this.

I do not think you need to consult a financial planner but do yourself a favour and pick up the phone and call Jamie. I can guarantee you will get a lot more out of a 10 minute conversation as opposed to trawling the Internet for low rates.

 

[pinkboy]

You can get LMI waiver to 90% LVR if you are:

1. Medico
2. Accountant (subject to conditions)
3. Engineer (subject to conditions)
4. Lawyer
5. Politician
6. Celebrity
7. Athlete
8. Chuck Norris

Please expand.


pinkboy

 

[Peter_Tersteeg]

So which are the more generous lenders? I only have the one property at the moment, but am looking at getting a second.. Possibly interstate.

Whilst there's some general observations of which lenders are more generous, the right strategy does change for everyone so there's no single simple answer here.

The point I was previously trying to make is that it's not as simple as looking at a list and moving from one to the next as you reach their limits. You need a deeper understanding of the policies which is directing those results. Which mortgage insurers are behind them, what can you negotiate on and where can't you negotiate.

 

[Shahin_Afarin]

Please expand.


pinkboy

You need to be a professional sports person or ex player or coach still working in the industry and have a contract with at least 12 months left

 

[Jamie M]

You need to be a professional sports person or ex player or coach still working in the industry and have a contract with at least 12 months left

Have you picked up many of these clients? Would be pretty cool.

Cheers

Jamie

 

[pinkboy]

You need to be a professional sports person or ex player or coach still working in the industry and have a contract with at least 12 months left

Pfft! Professional, double Pfft!

Im closer to Chuck Norris of sport than 'Athlete'!


pinkboy

 

[Shahin_Afarin]

Pfft! Professional, double Pfft!

Im closer to Chuck Norris of sport than 'Athlete'!


pinkboy

No you actually have to be Chuck Norris. They did however make a policy exception once for Rick James.

 

[Shahin_Afarin]

Have you picked up many of these clients? Would be pretty cool.

Cheers

Jamie

A couple but most of them have PoA's so you I rarely speak to them directly.

 

[tobe]

Sorry if this is slightly off topic but does anyone know if any bank still offering 85% no LMI at the moment?

As previously mentioned Citi and The rock for purchases only, and now Pepper for purchase or refinance.

 

[kimba88]

Hey Kimba,

From what I am reading it just sounds like your just after a low rate but the brokers on here are trying to ask you what your goal is because that is critical.

Why are you even buying property? I assume it's to make money/fund retirement. If so do you plan to buy 2 properties and then sit on those and wait for capital growth or do you want to keep purchasing more properties? If option 1 then it's not as important and maybe chasing the cheap rate is fine but if you want to build a portfolio with a number of properties then your willingness for the cheapest rate and not the best products for the future will compromise this.

I do not think you need to consult a financial planner but do yourself a favour and pick up the phone and call Jamie. I can guarantee you will get a lot more out of a 10 minute conversation as opposed to trawling the Internet for low rates.

I'm honestly hoping to build a portfolio. I'm more likely to sit on the properties and wait for capital growth. It would be nice to build a portfolio fast, but I'm more of a cautious person and don't want to get in water too deep.

I called up Suncorp and spoke to them about their loan. I got them to email me the info we spoke about. Here it is:

"As discussed if your property values up at $400,000.000 and based on your borrowing needs of $300,000.000 you would not have any Lender Mortgage Insurance as your LVR would be at 75%. Based on this scenario and to stay within a 80% LVR you would be able to access approx. $20,000.00 in equity.

If your property values up higher than there may be a capacity to redraw further equity. As discussed your borrowing capacity at the moment is $367,000.00 so if the property valued up around $470,000.00 you would be able to access the additional $67,000.00 of equity".

I called Suncorp as ANZ are not even willing to budge. I do realise rate isn't everything, but knowing the above information, would it be worth me considering a move to refinance if I can get my LVR below 80% through valuations or using the money I have saved in my offset account?

Theres probably something I'm not understanding quite right from the information you are all giving me on these forums, based on you all mostly saying I should stay with ANZ. Is there really a major difference between bank to bank?

 

[Rolf Latham]

please see below

I'm honestly hoping to build a portfolio.


A business mentor once said to me, that hope is not a strategy

I'm more likely to sit on the properties and wait for capital growth. It would be nice to build a portfolio fast, but I'm more of a cautious person and don't want to get in water too deep.

Nothing wrong with sitting on properties, but to sit on them,one needs to have acquire them, and to acquire them wisely ( rather the "reactionarily" = rolfism) would more suit your risk averse nature

I called up Suncorp and spoke to them about their loan. I got them to email me the info we spoke about. Here it is:

"As discussed if your property values up at $400,000.000 and based on your borrowing needs of $300,000.000 you would not have any Lender Mortgage Insurance as your LVR would be at 75%. Based on this scenario and to stay within a 80% LVR you would be able to access approx. $20,000.00 in equity.

If your property values up higher than there may be a capacity to redraw further equity. As discussed your borrowing capacity at the moment is $367,000.00 so if the property valued up around $470,000.00 you would be able to access the additional $67,000.00 of equity".

I called Suncorp as ANZ are not even willing to budge. I do realise rate isn't everything, but knowing the above information, would it be worth me considering a move to refinance if I can get my LVR below 80% through valuations or using the money I have saved in my offset account?

Theres probably something I'm not understanding quite right from the information you are all giving me on these forums, based on you all mostly saying I should stay with ANZ. Is there really a major difference between bank to bank?

You have paid a bunch of lmi guessing. Leveraging that into an IP, or a debt recycling strategy around some shares/managed funds will often have much much better upside than a few points on rate.

There are large variations between diff lenders for portfolio builders - less so of an issue for ma n pa borrowers that just want to pay a house off.

Often, online lenders like loans.com.au are a suitable solution

part of the challenge for us humans is to realise there are things that we dont know that we dont know, so its difficult to make wise decisions from the basis.

ta
rolf

 

[kimba88]

Ok, I'm WANTING to build a portfolio. I'm just trying to figure out how to do it safely. Just not sure on what that strategy is. All I'm doing at the moment is saving every penny and putting it into my offset account as well as potentially pulling out equity.

I've had to pay just over 4k equity.
When I purchase my next property, I think I want to make sure they aren't cross colateralised. I don't want to risk both going under if something does go wrong ( I think I've got the right term here.. If I'm understanding it all right).

 

[Rolf Latham]

Ok, I'm WANTING to build a portfolio. I'm just trying to figure out how to do it safely. Just not sure on what that strategy is. All I'm doing at the moment is saving every penny and putting it into my offset account as well as potentially pulling out equity.

I've had to pay just over 4k equity.

dont do anything until you have a clearer view of why where and how.

saving a $ 1000 now might have a resultant loss of 5 to 50 times that NPV

Sha who post above in this thread knows what he is doing and can lead you through the potential minefield.

Book some time with him, dont navigate the minefield yourself when you have a guide that goes across it many times a day ,

ta
rolf

 

[GreenMedallion]

2. Accountant (subject to conditions)
3. Engineer (subject to conditions)

What sort of conditions would they be?

 

[Shahin_Afarin]

1. Both need a minimum income of $150k (this can include rental income so say $120,000 PAYG and 30k Rental)

2. Both need industry certificates

3. Engineer must be employed by mining company

4. Must enjoy long walks on the beach