No Doc (70%+) Without Declaration of purpose.???

[alwayscurious]

Hi there.

Can anyone let me know if there IS a no doc loan (70% or more) that
a) pays LMI themselves (or self insures or uninsures)
b) has NO declaration of intent -

Declaration of intent read:

I /we declare that the credit to be provided to me /us by the credit provider is to be applied wholly or predominantly for business or investment purposes.
By signing this declaration you may lose your protection under the Consumer Credit Code.

We cannot sign the above declaration truthfully and would rather lose the deal than sign under false pretence..

However we could sign a declaration that states:
My wife and I are aware of the provisions of the code, we are willing to waiver them, however: We will not be using this for wholly or predominantly investment or business purposes.

(ie - we are buying a PPOR)


Notes:
I have an ABN for more than 2 years.
I have 175K (approx) of cash from previous sale to play with.
I am attempting to purchase a 450K house.
I don't really want to pay LMI.
Ideally they would have a 3 year fixed rate less than the current variable too (cheeky)

 

[Rolf Latham]

Hiya

There are a few funders that will do consumer (PPOR) No docs.

Best of luck with the rates though........no docs generally have an OK variable rate but a cruel fixed where they are available.

LMI on a loan of that size would only be around 2000 or so

ta
rolf

 

[Peter_Tersteeg]

Everything you ask for is possible, but if the funder pays the LMI the rate will attract a premium. You'd be far better off simply capitalising the LMI.

 

[Qlds007]

As both Peter and Rolf have mentioned it is certainly possible but you would be better of paying the LMI.

I am not aware of any Nodoc funds where the 3 year fixed rate is less than the variable rate. Did one during the week and the variable rate was 7.64% pre-rate increase. Fixed rate was 0.75% more than that.

 

[alwayscurious]

Resolution

Hi there:

we ended up going with a full-doc loan.

Couldn't stomach the thought of settling under false pretenses, as all along it was for a PPOR.

We very seriously considered renting the place out for a time to satisfy the condition but in the long run - it really wasn't palatable or even acheivable to rent for a short time, so we ditched that loan and went for another, more acceptable one.

Better be safe & honest than unable to sleep at night I reckon.

Thanks for the replies.. I learned a sharp lesson about No-doc/Lo-docs though - they do have their downsides! Useful as they are, that's another one to chalk up to experience.

(un-regulated / no ACCC protection means NO personal use, and cruel rates to boot!!)

 

[Peter_Tersteeg]

AC, now you've left me wondering why you'd want a no doc if you qualify for a full doc?

The only reason I can see is that you don't have any asset & liabilities declaration on a no doc.

 

[Ausprop]

"Couldn't stomach the thought of settling under false pretenses, as all along it was for a PPOR. "

maybe you are over anlyzing the question? a PPOR sounds like a good investment to me.