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by Otto Dargan
Tue Nov 03, 2009 11:07 am
Forum: Home Loan Forum
Topic: about break cost
Replies: 1
Views: 6631

Re: about break cost

It is difficult to say if their calculation is correct as it is the change in the wholesale funding rates (what the lender pays to the money market) that determines the break fee, not the change in the retail rate (what customers pay). The change in the customer rate is a good guide however it isn't exact as the wholesale funding costs change all of the time. What they have quoted you is certainly not outrageous as the term remaining on your fixed rate is quite long.

I would suggest that you ask the lender for a break down of their exact exit fee calculation. They will be very reluctant to give you this information, however it is the only way to check.

Good luck!
by Otto Dargan
Tue Oct 27, 2009 9:01 am
Forum: Home Loan Forum
Topic: Lo Doc recommendation
Replies: 3
Views: 9639

Re: Lo Doc recommendation

Thanks Simon we may be able to use your foreign tax returns as evidence of your potential earning capacity. This type of loan is available up to 80% of the property value and can be approved on a case by case basis. If we can do it that way then that would be great as you would get an excellent loan.
by Otto Dargan
Tue Oct 27, 2009 8:33 am
Forum: Home Loan Forum
Topic: Lo Doc recommendation
Replies: 3
Views: 9639

Re: Lo Doc recommendation

Hi Canuck

Your situation is a little complicated so we would likely have to see your full situation to work out exactly what can be done. We have done quite a lot of Australian expat loans and in many cases the borrower was just returning to Aus.

There are several ways you can get a loan here:

* If you buy before you leave your job in Nth America then we can go with a lender that can approve the loan on that basis at 80% of the property value.
* If you have an ABN in Australia then we can use this to obtain a low doc loan. The rate will be higher however you can usually refinance within around 3 years to a lower rate.
* If you borrow 60% of the property value then we can get you a very cheap low doc loan.

If you would like give us a call on +61 2 8668 4038 or email us and we can call you back using skype.
by Otto Dargan
Fri Oct 23, 2009 8:30 pm
Forum: Home Loan Forum
Topic: Guarantors and Debt Consolidation
Replies: 1
Views: 6955

Re: Guarantors and Debt Consolidation

Unfortunately if you are looking to borrow 100% or more then you will need a security guarantee. An income guarantee will not work as from a lenders point of view the income isn't the problem, it is the lack of security.

You should talk to your extended family about being a guarantor (must have cash or a property with equity) or try to save 5% of the purchase price once you have repaid your debts.
by Otto Dargan
Mon Oct 19, 2009 6:52 am
Forum: Home Loan Forum
Topic: ABN NUMBERS & Guarentors.
Replies: 1
Views: 7377

Re: ABN NUMBERS & Guarentors.

Hi Smiddy,

It really depends on what type of guarantee your father is offering. If your income is excellent however you have no deposit then it is likely that what you need is a security guarantee.

With a security guarantee with some lenders it does not matter what your father's employment situation is, as long as he has equity in his property which the bank can use as additional security. Also you would not need a deposit, although a small deposit would be helpful because it would enable us to select a loan from a wider choice of lenders.

If your income is not very high then you may need a security and income guarantee. In this case your father's employment would be important, depending on how much of his income is required to help prove you can afford the loan.

I'd recommend you contact us because your situation sounds a little more complex than normal.

Thanks
by Otto Dargan
Sun Oct 18, 2009 5:08 pm
Forum: Home Loan Forum
Topic: Not happy
Replies: 1
Views: 7223

Re: Not happy

This would be an issue for you to sort out with the vendor. If it is a new building and there are defects of faults then you may be able to get the vendor or builder to fix these problems. You should talk to your conveyancer about the various options available as there is some variation between different states. I believe a builder is liable to fix defects up to 7 years after a house is built.

If the house is quite old then you would be unlikely to be able to get anyone to fix the problems. Your bank doesn't really play a role in this.
by Otto Dargan
Mon Oct 12, 2009 4:03 pm
Forum: Home Loan Forum
Topic: 80% Lo-Doc LOCS
Replies: 1
Views: 7084

Re: 80% Lo-Doc LOCS

Hi Robert,

We've been speaking to the major banks regularly about their low doc loan policies. At the moment they are all very strict with low doc loans and the general indication is that they intend to keep these policies in place for 1 - 2 years +. They are taking a "wait and see" approach so may decide not to change their policies back at all.

We can still get very competitive low doc loans up to $1m at 80% LVR for purchases and construction. Refinances are now quite difficult, as are loans over $1m at 80% LVR.

To get a >$1m low doc loan at 80% we would have to use a non-conforming lender and the rate would be higher than normal. 75% is likely to be a better option although it would still be expensive.

For this type of situation we would need to see your full details and obtain a quote from several lenders. It isn't as straight forward as it used to be.
by Otto Dargan
Mon Oct 12, 2009 3:56 pm
Forum: Home Loan Forum
Topic: Strata-titling a encumbered block
Replies: 1
Views: 7260

Re: Strata-titling a encumbered block

Hi Robert,

When the block of units is subdivided your bank will need to be notified of and consent to the subdivision. When they do this you can request that they revalue the units and release one or more of them as security, if they are no longer required. As a general rule as long as the loan amount remains below 80% of the value of the remaining security then they will accept your request to release the other units from their mortgage.

This rule may vary depending on if you have a low doc loan or normal loan and also depending on the lender you are with. We have been through this process with many similar situations such as subdivision of large blocks of land, duplexes and small blocks of units. Generally the valuation comes in approximately 20% higher for 4 units on separate titles when compared to 4 units together on one title. Again this varies depending on the location & nature of the units.
by Otto Dargan
Mon Oct 12, 2009 10:13 am
Forum: Home Loan Forum
Topic: 457 visa
Replies: 3
Views: 10413

Re: 457 visa

Hi Helen,

As a general rule the amount of the guarantee plus your loan must be less than 80% of the value of your property. The math for this can be a little complex so if you like we can call you or your son in law to discuss this in detail.

So for example say your son in law wanted to buy a home for $500,000 and had $30,000 as a deposit.

104% of $500,000 = $520,000 (total cost of home + stamp duty etc)
Less $30,000 deposit = $490,000
Maximum loan for son in law $400,000 (80% of purchase price)
Amount of guarantee = $90,000 (Difference)

Your loan $400,000 + $90,000 guarantee = $490,000
Divide by 0.8 = $612,500

So the minimum value of your property would have to be $612,500. This is an example only, I'd recommend you discuss this with us in detail as it can be a little complex.

Not many lenders will allow someone on a 457 visa to take a guarantor mortgage, in particular if they are taking a 2nd mortgage for the guarantee. I know of at least one lender that can help with an excellent discount. We would need to see the full situation to work out which other lenders could help.
by Otto Dargan
Mon Oct 12, 2009 7:16 am
Forum: Home Loan Forum
Topic: 457 visa
Replies: 3
Views: 10413

Re: 457 visa

Hi Helen,

In most cases your son would require around 24% of the purchase price to be able to buy a property. This is 20% as a deposit and 4% to cover costs such as stamp duty. He can borrow up to 80% of the property value with a mortgage.

There are some exceptions to this rule:

* If he is a medical professional (see full list of professions on our 457 visa page)
* If he is married or defacto with an Australian citizen
* If he has a guarantor that can provide additional security using a property or term deposit in Australia.
* For strong applicants we can consider a loan of up to 90% of the property value! Generally you must have excellent savings, have a good income, be 12 months in his job and a clear credit history.

If you would like to guarantee his home loan and have a property in Australia then this can likely be accomplished. If you do not own property in Australia then I would recommend that you borrow against a property you have overseas and lend this to your son as a deposit. In several years time he can refinance his loan and repay the loan to you.
by Otto Dargan
Thu Oct 08, 2009 4:01 pm
Forum: Home Loan Forum
Topic: guarantor loan and bad credit history
Replies: 3
Views: 13607

Re: guarantor loan and bad credit history

Hi Bruce.

If we could get a letter from your managing agent confirming your rent is being paid on time and that you are an excellent tenant then I expect this would be ok for a guarantor loan because the default is old, it is small and there is a good reason for it. If you could provide some kind of evidence that your previous property was a share house such as a copy of the lease or a letter from the managing agent then this would be helpful. I know this is asking for a lot of info, however please be aware that lenders hear plenty of excuses for defaults and we have to show that you are not in this boat.

Utility defaults are considered in a good light compared to other defaults as the utility companies are well known for defaulting first, asking questions later (or not at all).

Just a few more quick questions:

* Is your guarantor a pensioner, self funded retiree or are they currently working?
* Do they have a loan on their property already? If so for how much approx and with which lender?
* Roughly how much is the guarantors property worth?
* How long has your partner been in their job for?
by Otto Dargan
Thu Oct 08, 2009 2:38 pm
Forum: Home Loan Forum
Topic: guarantor loan and bad credit history
Replies: 3
Views: 13607

Re: guarantor loan and bad credit history

Hi Bruce,

Yes this would likely be an issue. Most lenders will not accept any adverse credit history with guarantor home loans.

Unfortunately there are rarely any exceptions to this policy. If you have a VERY good reason for the default (divorce, serious illness etc) and evidence to back this up OR if the default is less than $500 and was paid more than 6 months ago then we may be able to get you a guarantor loan.

The other option is to do the 80% / 20% option where we arrange a small loan on the guarantors property and they either lend or give this to you as a deposit. Depending on how bad the default is we could get you an 80% loan on your property, thus avoiding the problem.

If you have anything to help make your situation stronger such as a perfect history paying rent, strong employment or some minimal savings to contribute then this would also be helpful.

Can you let me know the amount of the default and if you are ok with sharing the reason for the default then that information would also be helpful. Alternatively you can call us to discuss in detail.
by Otto Dargan
Fri Oct 02, 2009 2:20 pm
Forum: Home Loan Forum
Topic: First home buyer
Replies: 1
Views: 7200

Re: First home buyer

Hi Oli,

Yes you can use the $10,500 as part of your deposit. That being said you will need a little additional money of your own to pay for some costs. How much you will need depends on the State / Territory that you are in and also if the lender adds LMI to your loan (capitalises) or deducts it from the loan.

To qualify for a 95% home loan you have to be in a very strong financial position. Very few people meet the criteria, however 90% home loans are much eaiser to get approved for.

Genuine savings are important for most lenders if you are borrowing over 80% or 85%. There are some lenders that can lend 95% with no genuine savings however the approval criteria are very strict.

Give us a call or enquire online and we can discuss the options with you.
by Otto Dargan
Fri Oct 02, 2009 10:05 am
Forum: Home Loan Forum
Topic: How can I apply for home if I new start current job?
Replies: 3
Views: 10455

Re: How can I apply for home if I new start current job?

Hi Jian,

Your situation is a perfect example of where we would be able to get a few of our lenders to make an exception to their policy and approve the loan. This is because of the following:

* You have an excellent savings history.
* You are in a professional line of work & have experience studying in that field as well as prior work experience.
* Your co-borrower is employed full time.

Assuming the other aspects of your situation are all ok then I can't see any problems with this. We'd be happy to help you get a loan approval.

Thanks
by Otto Dargan
Fri Oct 02, 2009 9:55 am
Forum: Home Loan Forum
Topic: Queries about off-the-plan house purchase!
Replies: 3
Views: 9991

Re: Queries about off-the-plan house purchase!

Ok so if you buy the land and have a contract with a builder to build the home then this is considered to be a normal construction loan and does not have to meet the off the plan criteria that most lenders normally have.

For house and land packages you can often borrow 90% of the property value or 95% in rare cases.