Can someone help with the above question thanks...
Which purchase and borrowing costs can be capitalized into loan?
- Thread starter thefirstbruce
- Start date
I'd be interested too ........particularly in terms of what I've seen Rixter talking about where (I think) all his loans are >100% LVR. Are banks lending in this fashion only when it's equity based finance and they can basically cover the extra 5-7% by upping their security on the other property that is providing the "equity deposit"??
Hopefully I made some sense
Ed
Hopefully I made some sense
Ed
G'Day
Generally the maximum Loan to Value Ratio for a particular loan product or a particular lender is the limit.
For most lenders that would mean you could borrow eg 95%LVR and that 95% could include any costs you like. Some lenders will assess servicability to 95% but then lend the borrower a bit more money to pay the LMI premium, and cap that at 97% but not assess serviceability on the extra amount.
That sort of arrangement is very helpful when the borrower is running right to the $1 surplus per month model.
Even for the 106%LVR loan products the limit is very definitely 106% - and depending on the value of the purchase the borrower may still end up contributing some money towards the purchase.
So the short answer is: depends on the loan product, the lender's policies, and how close to the wind you're sailing with serviceability!
Cheers
Kristine
Generally the maximum Loan to Value Ratio for a particular loan product or a particular lender is the limit.
For most lenders that would mean you could borrow eg 95%LVR and that 95% could include any costs you like. Some lenders will assess servicability to 95% but then lend the borrower a bit more money to pay the LMI premium, and cap that at 97% but not assess serviceability on the extra amount.
That sort of arrangement is very helpful when the borrower is running right to the $1 surplus per month model.
Even for the 106%LVR loan products the limit is very definitely 106% - and depending on the value of the purchase the borrower may still end up contributing some money towards the purchase.
So the short answer is: depends on the loan product, the lender's policies, and how close to the wind you're sailing with serviceability!
Cheers
Kristine
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