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...