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question to the lurking brokers

Discussion in 'Real Estate' started by voigtstr, 5th Aug, 2008.

  1. voigtstr

    voigtstr Well-Known Member

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    My broker can only find 95% lend with LMI capitolised. He's currently thinking ANZ break free package.

    Features I need were 100% offset (we will probably live in the place in 3 years or so), interest only (at least while its an IP)

    Are there any other providors out there that will go to 97% and capitol the lmi?

    The house value is approx 270k. We have 20k ready to go in LOC for the purchase costs (including deposit). My wife does have 6k in savings which would cover the costs at 95% but that money is intended to replace her income for a while if we have a child, so we would really prefer to go to 97%

    Which lenders will do that, have a 100% offset account, and will do IO?
     
  2. voigtstr

    voigtstr Well-Known Member

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    Is it worth sticking with a 95% lend, and getting a separate loan for 4k (or whatever is required) which combined with the 20k LOC would pay all purchase costs.
     
  3. voigtstr

    voigtstr Well-Known Member

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    to get to 97% lend with capitolised LMI our broker is thinking of using Prosperity Flexible choice, on the proviso that it can be switched to another product that offers the 100% offset when we decide to make it a ppor. Does this seem like a reasonable approach?
     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    If we're talking about only $4K difference and you absolutely have to have this house, then why not just look at a personal loan or credit card for the short term ?

    This is only if you can afford to pay it off in pretty short order ... but it may well give your more flexibility in the short term.

    You need to do the sums to work out how much the extra LMI will cost (LMI above 90% starts to get prohibitively expensive) - and whether you will have any other costs in moving to the other loan product in the future.
     
  5. Muzza

    Muzza Active Member

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    havent looked into it for a while but ING used to go to 97% and also capitalise LMI
     
  6. voigtstr

    voigtstr Well-Known Member

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    Thanks Muzza, ING dont do offsets (the next IP will be a ppor after 2-3 years and we want to debt recycle with this property)

    We were told today that loan providors we were looking at wont go to 97% anymore, but only to 95% now.

    Looking at our combined savings we can scrounge that extra 4k or so, so now we are looking at loans at 95% lvr that will capitolise LMI, and have a 100% offset.

    Futher to this, the lowest monthly mortgage our broker has sourced with the bells and whistles we need (even including the package fee) is an ANZ professional package (at least compared to B&E and Pioneer). I expect we'll be signing loan documents early next week.
     
    Last edited by a moderator: 16th Aug, 2008