Passive income but no job as such

Hi,

I am seeking advice on finance for property purchases. The problem is that I am finding a lot of banks etc wont lend unless you have the good old mundane form of income ie: work. I sold my business some time back and have healthy equity and passive income. I dont get why a "job" is classed as more secure than a 5yr signed lease. I would think that one could lose a job easier than a lease would fall over ( commercial anyway). What I need to know is who will lend me the money, 65% loan is fine, I can fund the 35% deposit and stamp duty. Any assistance or input is most appreciated. I am located in Perth.

Thanks in advance.
 
Hi BlueEyes.

Just off the top of my head, are you using a broker or approaching banks yourself. I didn't think it would be so hard to get a 65% lend. Perhaps some sort of lo-doc loan.

Regards
Marty
 
I dont get why a "job" is classed as more secure than a 5yr signed lease.

Same reason why the Banks lend 90% or even 95% to first timers to buy a house, but only lend a max of 65% to buy your 25th office.

People's perception of "risk"....and all of the baggage that is lumped onto the table. You've gotta remember, the credit squirrels making the rules are all 55 to 60 years old, probably have one house with still a mortgage to pay off and have been working at the Bank in the same job for the last 35 years.

How do you honestly think they view you, or any investor in your situation ??
 
yeah nothign would make a credit squirrel happier than to decline an application from some young upstart. even better would be to appoint an administrator to really sort him out - that'll teach him for not getting a job and being sensible.

ps. yor location says nsw but you say you are in perth.
 
Weird.

When we came back from the USA we wanted a loan for a $500K PPOR. We already had $500K in retirement/stock which we thought would be pretty good security but no. They wanted us to have a job.

We were gobsmacked, especially coming from a country where our dog got offered a credit card with no signature (paw print?) required.

A credit union came through with the goods.
 
I have a 60% LVR with the ANZ and they are trying to decide whether I can extend my I/O period on one of my loans, or let the loan go to P&I.

I have asked them why, if they don't think I can afford I/O payments, how they can possibly think I can afford P&I. (no answer yet)

They have asked for the sort of information needed for a full doc loan. It's enough to just say "stuff it I will take my business elsewhere"
 
Glad to see most of you know where I am coming from on this. It's frustrating as hell. I did have one broker not long ago telling me he could get me 65% no doc the only thing you needed to have was a pulse and pay your loan. The catch....9% which is quite high at the moment and will only go up. I need to change my profile again moved from WA to NSW and now back in WA. I may need to try a couple more credit unions but they seem a bit iffy about what they lend the money for etc. I remember borrowing out of state or commercial was an issue with the credit union I was a member of. Thanks for the help guys, its great getting feedback.
 
2 years ago I would have said 'go low doc' but nowadays banks have tightened up on that significantly. No doc is the only way for you now but as you said, it's quite expensive. But if you really want the house then that's what you have to do...
 
I have a 60% LVR with the ANZ and they are trying to decide whether I can extend my I/O period on one of my loans, or let the loan go to P&I.

I have asked them why, if they don't think I can afford I/O payments, how they can possibly think I can afford P&I. (no answer yet)

They have asked for the sort of information needed for a full doc loan. It's enough to just say "stuff it I will take my business elsewhere"

i wanted to fix a loan with ANZ last april (on var). they wanted to treat it as a new application and relook at LVRs etc... i couldnt get out of the branch fast enough
 
Lodoc loans are still very obtainable at reasonable interest rates for both purchases and refinance (especially where you are doing a lodoc refinance from a full doc deal).
 
wish i could get to the bottom of this, some brokers I have spoken to say tha the best lodoc you can get now is 60%lvr with 2 years ABN and 12 months BAS. I would rather margin loan shares!

if you could provide all that wouldnt you just go full doc?
 
Lodoc loans are still very obtainable at reasonable interest rates for both purchases and refinance (especially where you are doing a lodoc refinance from a full doc deal).

Hi Richard - any lodocs that don't need BAS/GST registration?

-- MJ.
 
So, really, if you earn over $75k, what's stopping you from just saying "$75k" to avoid the GST shernanigans?

Apart from the "You can't lie on a loan application", of course.

In order to get around the moral delemna, I'd almost be willing to take a pay cut to get a couple of lo doc loans... assuming I had the equity of course. :)
 
I wasted 2 months with bankwest before they realised they don't do vacant land in trusts. think that was the reason.

My broker tells me that there are some new players in the lo doc game which should help us all. Bankwest unfortunately does not allow purchases in Trusts.

Cheers, MTR
 
Am also told that Suncorp have lo doc product 80%LVR, no BAS statements.

Have had some good and bad feedback on this group.

Maybe someone can comment on this?

Cheers, MTR
 
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