… for 60%-80% of value of $350k investment property (which has been owned 20+ years and is being refinanced).
Owner's Income $150k+pa.
What would be a good interest rate (seen 7.2-7.5% for 60%)?
Any info on any set-up costs IF change from current lender?
Any feedback gratefully received.
Sure, mick123. "Low Doc" due to perfectly-legitimate-but-difficult-to-navigate paper trail re self-employed borrower's income involving another company for the first part of the two years accounts required. The accounting is straightforward for the last year but wasn't for the part of the first year of the two-year period for which they require accounts.
I was told by one lender today that "low doc" only requires my accountant's confirmation of the income and a stat dec whilst otherwise two years accounts (or PAYG slips) were required.
I know nothing about borrowing/mortgages in today's markets and have only just started looking today.
Hi
I am with Westpac. My loan was processed by their lending manager. The guy is really nice and very helpful.
If you want I could pass on his details to him. Speak to him and see. These days market is competitive and banks I am told are looking for new business. 60% Loan in a low market should not be an issue. Income documents is one part of the deal, the other important parts are if anything goes wrong can bank safely get their money back, which in a high deposit loan don't seem to be an issue. Also your previous credit history, history of no defaults etc helps. The loan market is very discretionary, and different lenders have different criterion. My experience lowest advertise rates are the biggest pain to deal with. On the other hand Westpac was great, and with a higher than advertised discount I am better off that the lowest rate bank (read NAB) offered.
Bottom line is that it is a slow and competitive market speak to a few people before you make up ur mind. Another tip, if you go through a broker, banks are less flexible to deal with, as all the papers go to central processing cells, who make a decision based on written policies, no discretion is applied. In case of dealing with a manager, they have some discretion available to them, which they usually are happy to apply to get your business.
Hope this helps.
Yes very helpful Spal. Thanks. I might come back to you for that name :)
may I just ask - no need to get into detail - on a loan which is less than 2x annual income, why are you going low doc.
I have no idea about low docs and not much about LOCs but you should be able to get 6.9% or less on regular loan