Hello,

I read recently the post regarding what we all do for a job. I thought I would offer my skills to help you with any mortgage or lending questions you might have.

I have worked for major lenders and am currently in a position that works with finance brokers, so am suitably qualified to answer your questions.

I am unable to provide financial advice, so cannot tell you if investing in a particular property is a good idea etc, but am happy to let you know my opinion for you to make up your own mind.

I really am looking to help you out with the different types of options that exist and where they are appropriate to be used etc.

So go ahead, ask me a question about mortgages ........

I'll try and check the posts everyday, or you can PM me if you are more comfortable with that.

Where can I get one with zero deposit?

.......and no interest?????

.........and a mama-san to pay for it

What they said.

vik

Serious question

What, if any lender, will borrow at 80% LVR against a block of 4 flats on one title (no strata)? 70% seems to be as good as it gets.

Cheers

With the resurgance of the equity market (company stock being undervalued for some time - just look at PE ratios) and the resultant decline in the property market with rising interest rates, all economists are predicting a rapid slowing in housing demand. So from an investment perspective I would recommend that anyone looking at purchasing property for investment seriously consider not and perhaps placing that money into some good Aussie equity managers, some small caps and even a little in Asia.

My 2c worth.

I think the only place you will get a no interest loan will be from a friend or family member, so sorry to dissapoint about that one.

No deposit loans were offered by a few lenders, the biggest being St George. But as a trade-off, a fee would be charged that would be equivalent to mortgage insurance. With St George, they called it a loan extension fee (LEF) and basically cost you your left arm to obtain a no deposit loan as this fee was about 2.5% of the loan amount for a no deposit loan.

A smarter way to obtain a no deposit loan would be to borrow the 10% deposit required plus costs like stamp duty etc. Most lenders have access to the mortgage insurers specialised product called a 90 / 10. This is where you can borrow 90% of the purchase price of the property as long as you have borrowed the other 10% from elsewhere and can still afford the repayments. You will pay a mortgage insurance fee which applies to most loans that exceed 80% of the property value, but the mortgage insurance charge will generally be less than the fees charged by no deposit lenders.

Cheers

Simon

Turbo6, I agree, the housing market is reaching a cyclical growth peak and is generally counter to the share market, so equity funds or managed funds would be a good investment as well.

Our analysts recently came up with an interesting stat for us for the housing market in Australia. That is, in the last 65 years, the value of property has declined only once in this time. This relates to median price and individual areas will fluctuate and may lose value, but overall the housing market is stable so that even if you purchase at the peak of the cycle, you retain your value.

Mondie,

70% for 4 flats on one title is generally the best it gets because the market to resell the property is restricted.

If the flats were individual ( strata titled ) then the lender could sell them individually if required if they ever needed to enforce the mortgage. As one title, there is significantly less buyers that are looking to purchase 4 units at one time, hence the maximum loan amount of 70% to give the lender 30% buffer if they needed to sell in this fashion.

There would be smaller lenders that might consider doing up to 80%, but none of them show that as a policy they would exceed 70%. In this case, we generally email all lenders with an outline of the proposal to see if they are interested in lending greater than 70%.