Serviceability

[Lissy]

From: Felicity W.


Just thought I'd throw a question out into the forum and see what responses I get!
What creative ways have people found to get around the good old debt serviceability issue?
Yes, I am aware of Cash Bonds, which reminds me I must book into Steve's next course in Melbourne which isn't full... Always more to learn.
What else have people done to over come this challenge?
Keep smiling
Felicity

 

[Rolf Latham]

Reply: 1
From: Rolf Latham


Hi Felicity

Sorry this will not be an answer to your question, more a general point.

My experience says its rare that people have a serviceability problem today. As little as 5 months ago service may have been a genuine problem but with the explosion of new lo no doc products and processes one should be able to get a dollar.

What they usually have is a combination of lack of equity and or undesirable security or other lending criteria.

I stick to my normal line that of you have equity in a suitable security (and I mean metro or large regional HOUSE and land) and a clean CRAA you can always get finance, in many instance at less then 7 % and in some cases below standard bank rates.

Uncle Steve's Model works to resolve that issue but still requires good equity in a suitable security and a clean CRAA.


I say Equity is King ! (cashflow comes second!).

Opinions please ?

Ta


Rolf

 

[Lissy]

Reply: 1.1
From: Felicity W.


Thanks for the reply Rolf, I certainly have the equity to go to no doc loans, and at the moment that's my probable course of action. I just thought I'd see if anyone had any other bright ideas!
So perhaps my next question should be - line up the brokers on the forum! - what great lo doc and no doc loans are out there right now? I have done a search but a lot of the info is getting old and is all over the place. Maybe we can get a bunch of answers all in one place!
Keep smiling
Felicity

 

[Rolf Latham]

Reply: 1.1.1
From: Rolf Latham


Hi Felicity

Hard to beat the Suncorp Metway Lo Docs Process.

P&I Loans at 80 % LVR at around 6.2 % and LOCs at around 6.5 ish at 75 % LVR.

Metro Max exposures 500 to 750.

Given the above they are a bit fussy on the security and your stability. Basically they look at the whole you not just the deal.

Resi also have a good product, Ill leave that to John Poulos our local Resi man to explain.

Then there are a squillion other varieties.
Ta


Rolf