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Discussion in 'Finance & Banking' started by Mark Laszczuk, 6th Mar, 2006.

  1. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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  2. Tropo

    Tropo Well-Known Member

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  3. Simon

    Simon Well-Known Member

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    One catch is that it is a fully securitised loan. This means LMI exposure. Not a big issue to a home owner but not the best product for an investor looking at building a portfolio of property.

    There are cheaper fully securitised loans than this.

    Cheers,
     
  4. Tropo

    Tropo Well-Known Member

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    Thanks Simon! :D
     
  5. johnnyb

    johnnyb Well-Known Member

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    For the uneducated, can you please give a brief explanation of what a fully securtised loan means and why that isn't good for an investor? Thanks.

    John.
     
  6. Simon

    Simon Well-Known Member

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    My understanding is that it means that all loans are mortgage insured. Rather than loans 80% + with mainstream lenders.

    So whilst they may not pass on a LMI premium under 80% it is still exposed to the insurers. At some point you will be too exposed and they will start saying no to you.

    If you intend borrowing often then I wouldn't recommend this type of loan unless you have no choice.

    Is not an issue until it is an issue!

    Can anyone more experienced in this area add anything here?

    Cheers,
     
  7. D&K

    D&K Well-Known Member

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