Need Low Doc 90% LVR Loan
- Thread starter Thomas
- Start date
Parksie,
The last couple of IPs I purchased using 95% LVR low docs from Pioneer but the MI was reasonably expensive....I think for $320K was about $9K MI. The interest rate was also "up there" - 9.5% currently I think. Loan was in my personal name. I did not have much choice as I'd done a $50K reno on Visa at 18% and needed to get a refinance done asap.
But there are mortgage brokers here that will assist you.
Cheers,
Aimy
I recently helped a client obtain a 90% LVR lo doc loan at a rate of 8.30%. The fees and LMI were higher than usual as you would expect. I'd have to check, but I believe the rate has increased slightly, but not a great deal.
No-doc Construction Loan
Hi Peter,
What's the highest lvr no-doc construction loan that is available? Is it possible to get something like 80% with an 8.3% interest rate?
The reason I am asking is because I am curious about using this type of product to undertake a dual occupancy development. However, at completion I would like to get it re-valued and put a LOC against the valuation in order to proceed to the next development - but I am not sure if there would be exit fees, and if they would be substantial?
Cheers
Aaron
Hi Peter,
What's the highest lvr no-doc construction loan that is available? Is it possible to get something like 80% with an 8.3% interest rate?
The reason I am asking is because I am curious about using this type of product to undertake a dual occupancy development. However, at completion I would like to get it re-valued and put a LOC against the valuation in order to proceed to the next development - but I am not sure if there would be exit fees, and if they would be substantial?
Cheers
Aaron
Just as an update, the current rate for the 90% lo doc is 8.35%.
A no-doc construction loan may no be required for your project, depending on the nature of the project. There are loans available at 75% of end value of the project with reasonable rates. Interest can be capitalised to the 75% limit so you don't need to make repayments during the development.
Whilst not a no-doc loan, they don't look as the serviceability as much as they look at the feasibility of the project.
At the end, you either sell or refinance the properties to a more appropriate loan. Fees on these loans are in the order of 1% to 3% (set up fees, ongoing and exit). Specific rates are hard to quote without understanding the project.
A no-doc construction loan may no be required for your project, depending on the nature of the project. There are loans available at 75% of end value of the project with reasonable rates. Interest can be capitalised to the 75% limit so you don't need to make repayments during the development.
Whilst not a no-doc loan, they don't look as the serviceability as much as they look at the feasibility of the project.
At the end, you either sell or refinance the properties to a more appropriate loan. Fees on these loans are in the order of 1% to 3% (set up fees, ongoing and exit). Specific rates are hard to quote without understanding the project.
You may want to check whether the HDT structure is acceptable to the funder.
Last I spoke to one of the 90/95% Low Doc lenders they told me that the HDT structure is not acceptable.
Of course, this could have changed in the last few months.
Last I spoke to one of the 90/95% Low Doc lenders they told me that the HDT structure is not acceptable.
Of course, this could have changed in the last few months.
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