|
|
| |
| |
Whether you are looking to Purchase a new home or you wish to refinance an existing home loan, we have a solution to suit your needs.
|
| |
| All of our services are obligation free and are also free of any brokerage fees or other hidden costs. Simply use our Online Enquiry Form and tell us your situation and we'll have one of our experienced and qualified loan consultants call you back. Your may also call us direct to discuss your options on 1300 736 976. Please note that our office is currently AVAILABLE TO TAKE PHONE ENQUIRIES Mon-Fri 8:30am to 5pm AEST to Callers. |
| Low Doc Loans are available for the purchase of established homes, the purchase of a vacant block of land, to build a home or to refinance an existing home loan. |
| If you have Credit issues, why not see what options are open to you. We even have Low Doc Loan solutions for "out of the square" situations. |
Regardless of whether you are Purchasing or Refinancing, you need to be aware that the Lender will normally send a Registered Valuer to value the property prior to final loan approval. The majority of problems we experience relate to a mismatch between the amount that you believe your property is worth compared to the figure that a Valuer may place on the property/s (this
is more likely to occur with a Refinance than a Purchase). To understand how you can maximise your chances of obtaining a fair market value valuation, you need to understand
How Valuers Work
Many of the problems we experience with loan Applications are Valuation related. It is important that you understand the processes involved
in valuing a property so that you can set your expectations accordingly. How can you do this?
Set realistic expectations. We would recommend that you go to the Internet Site
www.homepriceguide.com.au and take advantage of the
services that they offer (there IS a cost involved). Be aware that the sales data supplied may be several months out of date, but at
least you can get some indication of the worth of the property/s that you wish to purchase/refinance.
If you are refinancing, then you can help your cause enormously if you can provide the Valuer with details of recent sales in your area which
put your property/s in a favourable light. You will need the Property Address, Date Sold and the name of the Agent that handled the sale. Valuers
will help you if they can, but can only do this if you can provide them with additional information they may not have prior to valuing your property.
Understand that Valuers are "first in line" if a loan is in default and the Lender has had to foreclose and is "out of pocket"
as a result. For this reason, Valuers need to be very sure that they have not over-estimated the value of your property ... there are potentially
serious Professional Indemnity implications if the original valuation can be proven to be unrealistic (sometimes resulting in the revocation
of the Valuers Licence) . For this reason, it is VERY rare for a Valuer to
value a property that is being purchased at a figure higher than the Contract price ... there is simply no point in a Valuer exposing themselves
to a Professional Indemnity Claim when the Lender is only lending on the Contract price in any case.
Please also understand that the Valuer is in no way connected with the Lender and that the Lender has no influence over the valuation figure
submitted. The Valuer is charged with the responsibility of ensuring that the Lender is adequately protected by placing a fair and reasonable
market value on the subject property/s (usually based on a 30 to 60 day Sales Cycle).
OK, so what's the process ...
Formal Valuations are ordered by the Lender once your loan has been conditionally approved. The Valuer will then contact
the appropriate party/s within 2 working days to organise access to the property/s.
Even though the Valuer may only physically be on the premises for a very short time, there is a considerable amount of post-inspection
research that needs to be undertaken BEFORE the official Valuation is submitted. For this reason, please understand that you are NOT paying
a fee for a simple walk-through inspection. There is MUCH more to it than meets the eye.
As soon as we are advised of the Valuation amount, we will contact you if there are any issues that need to be discussed (eg: the Valuation is
less than the purchase price/your estimate OR there are negative comments on the Valuation Report that may effect the progress of your loan
[eg: high tension power lines encroaching on the property boundaries]). If all is in order, then we will progress your Application without
contacting you. Valuations are usually completed within 3 or 4 working days following request. IF you are on a tight time frame, then please
let us know and we will request a priority valuation.
If your property is valued at a figure lower than the purchase price/your estimate, then you should not
necessarily be concerned (particularly if you know the market is moving quickly). Remember … historical sales data which is more than 3 months
old may not always support the current asking price/your estimate. The Lender lends on the Valuation or the purchase price (in the case of a
purchase), whichever is the lesser. This means that the equity in your property may be less than you anticipated (if you are refinancing) OR
(if you are purchasing) that you will need to put in a larger deposit (if the Valuation is less than the Contract price).
Note that all Valuations are done on behalf of the Lender and NOT the Borrower (even though you, as the Borrower, may have paid for it). It is
normal industry practice that the contents and details contained in the Valuation Report are not disclosed to the Borrower or the Broker.
Finally, property valuations are an inexact science and the figures arrived at can be subjective. Some Valuers will be more conservative than
others, but they all generally rely on recent sales activity of similarly profiled properties within the immediate area over the last 6 months
when determining a final value for your property/s. Recent sales data is available to the Valuer via an Internet based subscription service and is
often several months out of date. Valuers attempt to obtain more recent sales figures from local Real Estate Agents, but this is not always
possible due to Privacy Act issues.
In summary, Valuers are professionally trained and need to adhere to a strict Code of Conduct. Their charter is to value a property based on
a fair and reasonable current market price, but this can be somewhat subjective. A Valuer is charged with the responsibility of protecting
the Lenders interest in the property and they can be subjected to serious Professional Indemnity claims if they over-inflate a propertys' worth.
Finally, Brokers and Lenders have no influence over the valuation figure which is finally submitted by the Valuer.
|
. |
|
| |
Purchase of a "lifestyle" property on the QLD Sunshine Coast hinterland
SCENARIO
Applicant wanted to purchase a lifestyle property (3 acres) on the QLD Sunshine Coast hinterland.
Applicant had a number of businesses that were all inter-related and it was a major task for him to produce financials that
would make any sense to a Lender. He had a 20% deposit and wanted a quick and easy loan. His credit was clean and he
easily serviced the loan based on his declared income.
OUR SOLUTION
Our first challenge was to find a Lender that would lend on a "lifestyle" property in this particular area.
We then needed to ensure that the property met all of the Lenders guidelines (with respect to Council Zonings,
the size of the property (acreage) and the provision of local services to the property (water, electricity etc)).
The Applicant provided us with all of the information we needed at first contact and we were then able to place the
business with a major bank at near to standard home loan rates.
|
Purchase of a new property using the equity in an existing home as the deposit
SCENARIO
Applicants owned their own home in Brisbane and were looking to purchase a residential "warehouse" type Unit to
run their business from. The Unit was in a standard residential block and was not a purpose built commercially
zoned security.
OUR SOLUTION
As all lending was essentially of a residential nature, we were able to place this business with a major bank under
their Flexi Package at standard discounted home loan rates. The clients used the existing equity in their home to finance
the deposit and ended up with a loan with 3 splits (a fixed portion for the "warehouse" unit at interest only, a
variable portion for the owner occupied home at principal & interest and a $25,000 Line of Credit for future use).
|
Refinance of an Owner Occupied home with released funds used for investment purposes
SCENARIO
Applicants owned a home worth $850,000 on which they owed $300,000. They wanted to refinance to use some of the released equity
to buy shares. They wanted to buy some in Applicant 1's name, some in the name of a family Trust and some in Applicant 2's name
(for taxation reasons). Because of this, they wanted the loan "splits" to be in the various names so they could directly
claim the interest payments relating to the investment splits as a tax deduction.
OUR SOLUTION
The refinance was very straight forward and we had the option of placing the business with a number of Lenders. Given the clients objectives
to have the loan splits in different names, we eventually organised a loan with a second tier bank (with a nation wide
branch network). They now have 4 loans over their owner occupied home all in the names that they required them in to meet
their Share Trading and Taxation objectives. This was done under the umbrella of a single loan application. Furthermore, we were able to
setup all loans ("splits") as a
Line of Credit
| A Line of Credit is a loan type that allows borrowers to draw down any amount (via a cheque book, ATM, over the counter or EFTPOS) up to and including the pre-approved limit. The main advantage is that you only make interest payments on the amount that has been drawn down. In some instances, you are not required to make any payments at all, provided you remain under the pre-approved limit (this is called "capitalising interest"). You can also pay back as much as you like at any time without penalty. |
so that payments were only made
on the drawn down balance rather than the initially approved loan amount.
|
Purchase of an Owner Occupied home while minimising setup costs
SCENARIO
Applicants wanted to purchase a home to live in for $750,000 and wanted to keep the setup costs to a minimum.
They particularly did not want to pay any Mortgage Insurance (
LMI
Lenders Mortgage Insurance (or LMI) does not protect the borrower
in any shape or form. It is an insurance policy taken out by the Lender in case
you are late with your payments or default on the loan. If this occurs, then the
Mortgage Insurer will pay the lender the shortfall and will then
recover this amount from you. Mortgage insurance is normally payable by
borrowers on all loans with a Loan to Value ratio
LVR
|
The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
|
exceeding 60% on Low Doc Loans. Mortgage Insurance is a
once-off cost and can often be added to the loan.
The premimum varies from Lender to Lender and will also depend on the amount being
borrowed and the
LVR
|
The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
|
.
|
).
They wanted a variable rate loan with no ongoing fees and wanted to provide as little paperwork as possible (purely
for convenience reasons).
OUR SOLUTION
Taking into account their objectives, we organised a loan with a third tier international bank (based
in Australia, but with limited branch outlets) at a very low interest rate (7.09% at the time) with no ongoing fees
and minimal setup costs. This saved them over $5,000 in Mortgage Insurance (
LMI
Lenders Mortgage Insurance (or LMI) does not protect the borrower
in any shape or form. It is an insurance policy taken out by the Lender in case
you are late with your payments or default on the loan. If this occurs, then the
Mortgage Insurer will pay the lender the shortfall and will then
recover this amount from you. Mortgage insurance is normally payable by
borrowers on all loans with a Loan to Value ratio
LVR
|
The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
|
exceeding 60% on Low Doc Loans. Mortgage Insurance is a
once-off cost and can often be added to the loan.
The premimum varies from Lender to Lender and will also depend on the amount being
borrowed and the
LVR
|
The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
|
.
|
)
as the mortgage insurance was paid by the Lender as part of a special promotion.
|
Purchase of an Owner Occupied home by a recent immigrant
SCENARIO
Applicant had recently arrived back in Australia (she is an Australian citizen) and earned her income as a full-time Share Trader.
She wanted to buy a home to live in, but did not have any current Tax figures as she had been out of the country for many years.
She had a 40% deposit but did not have an ABN number or any other supporting documentation.
OUR SOLUTION
Given her situation, we organised an "asset" lend with a non-bank Lender at very competitive interest rates (7.24% at the time).
No mortgage insurance (
LMI
Lenders Mortgage Insurance (or LMI) does not protect the borrower
in any shape or form. It is an insurance policy taken out by the Lender in case
you are late with your payments or default on the loan. If this occurs, then the
Mortgage Insurer will pay the lender the shortfall and will then
recover this amount from you. Mortgage insurance is normally payable by
borrowers on all loans with a Loan to Value ratio
LVR
|
The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
|
exceeding 60% on Low Doc Loans. Mortgage Insurance is a
once-off cost and can often be added to the loan.
The premimum varies from Lender to Lender and will also depend on the amount being
borrowed and the
LVR
|
The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
|
.
|
) was payable and the setup costs were less than $1,000.
She was not required to declare ANY income OR her Assets and Liabilities and she did not need an ABN number to apply.
This type of loan is commonly referred to as a (
No Doc Loan
No Doc Loans allow applicants to purchase or refinance residential property
(either owner occupied or investment)
without declaring or providing ANY income details or their Assets and Liabilities.
They are essentially an "Asset Lend" over the property being offered as Security.
Normally they max out at 70%
LVR
|
The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
|
, but
can go as high as 80% if you have an ABN number for 2 years or more and are
looking to purchase or refinance a property for investment purposes. The paperwork
is very simple and there is no minimum pre-requisite period of self-employment required,
but an ABN is usually required.
|
).
|
Not sure of your options?? ... call us on 1300 736 976 to find out.
Our office is currently AVAILABLE TO TAKE PHONE ENQUIRIES Mon-Fri 8:30am to 5pm AEST to Callers.
|
|
|
|
|
|
