Investing in Property

Investing In Property 


Another Tricky Scenario!


Scenario

-New purchase of an Investment property @ 85% LVR.
-One borrower holds other investment properties with siblings – not being refinanced.

Issues
-All equity was held up in the properties owned with other applicants.
-LMI costs were affecting funds to complete.
-There income didn't service due to debts held with siblings and Investment Property costs for HEM purposes.

Solution
-No LMI or risk fees on the lenders Prime Product.
-100% of debt, 100% of rent and 100% of negative gearing used for all loans held with non-loan applicants.
-Investment costs did not have to be separated out and added on top of HEM.
-Actual rate of interest for other loans was used for negative gearing calculation instead of an added buffer. This was very helpful.
-Servicing buffer of 2.5% added to actual rate of OFI debt, not the new loan rate so buffered repayment was a lot lower than last week.
-No credit scoring was used.

Want to talk through what you're looking to do?
Matthew Stack - Finance Broker - 0423 237 242
#homeloans #carloans #commercialloans

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