No doc loans and LMI
- Thread starter kph
- Start date
Hello kph
Regarding Lender's Mortgage Insurance and Low Doc loans, this really depends on the lender and their lending policies.
For example, while most lenders which offer Low Doc loans may not charge the premium to the customer some will do so after, say, 76%LVR.
As a general rule you can expect to not be charged for the premium but many lenders offer discounted interest rates if the borrower pays the premium.
The most recent lo doc which I wrote for myself, I earnt a .25% discount off the rate simply by paying the premium. Money well spent.
'Best Products' are, like beauty, in the eye of the beholder.
Each month brings it's own Special Deals - low or no application fees, discounted rates, some sort of bonus product, whatever - across the range of lenders there will always be a Monthly Special offered somewhere.
What is 'best' for you may not be any temptation to someone else. Sorry, but the most generic statement I could make here is that you could reasonably expect to do better than the Standard Variable (7.32%) on most low doc products on the market at the moment.
Not all lenders will allow low doc for construction, family companies or trusts, but some will in some form or another eg the LVR may be lower than 80%.
At the end of the day it is still the natural person who is borrowing the money and who is guaranteeing the repayment of the loan.
Low doc loans range from any LVR (eg 60%) through to 90%, with or without mortgage insurance, will or won't do construction etc
It really depends more on what you are wanting to achieve in the first place and then the loan to suit you comes later.
Cheers
Kristine
Regarding Lender's Mortgage Insurance and Low Doc loans, this really depends on the lender and their lending policies.
For example, while most lenders which offer Low Doc loans may not charge the premium to the customer some will do so after, say, 76%LVR.
As a general rule you can expect to not be charged for the premium but many lenders offer discounted interest rates if the borrower pays the premium.
The most recent lo doc which I wrote for myself, I earnt a .25% discount off the rate simply by paying the premium. Money well spent.
'Best Products' are, like beauty, in the eye of the beholder.
Each month brings it's own Special Deals - low or no application fees, discounted rates, some sort of bonus product, whatever - across the range of lenders there will always be a Monthly Special offered somewhere.
What is 'best' for you may not be any temptation to someone else. Sorry, but the most generic statement I could make here is that you could reasonably expect to do better than the Standard Variable (7.32%) on most low doc products on the market at the moment.
Not all lenders will allow low doc for construction, family companies or trusts, but some will in some form or another eg the LVR may be lower than 80%.
At the end of the day it is still the natural person who is borrowing the money and who is guaranteeing the repayment of the loan.
Low doc loans range from any LVR (eg 60%) through to 90%, with or without mortgage insurance, will or won't do construction etc
It really depends more on what you are wanting to achieve in the first place and then the loan to suit you comes later.
Cheers
Kristine
Thanks so much for that Kristine.
Most enlightening..... I guess if I was more specific with a case it would allow a more specific response.
I get the feeling that we miss out a bit in WA with a good range of products, or maybe some brokers have a better relationship with the lenders and are able to get better discounts ( on fees as well as interst rates) for the borrower.
Thanks for the reply
kp
Most enlightening..... I guess if I was more specific with a case it would allow a more specific response.
I get the feeling that we miss out a bit in WA with a good range of products, or maybe some brokers have a better relationship with the lenders and are able to get better discounts ( on fees as well as interst rates) for the borrower.
Thanks for the reply
kp
Hiya
Kristine has it covered.
The LMI on LO Doc loans through most banks (balance sheet lenders) kicks in at 60 % with no coverage required to that point. ABL is an exception at 76 %. Most banks that require LMI will want you to pay the premium regardless of the loan size
Coverage for securitised loans tends to be required regradless of the LVR, Rams, Maq Bank etc. Who pays and when varies with the loan, most No docs, you get away with up to 500, most lo docs similarly with some exceptions.
Build Loans are generally OK with many lenders BUT depends on th whom :O). Some will also lend to unit trusts.
WA should not be an impediment, there are a couple of lenders that are not licensed in WA, but the majors all are so the same product mix should be available..............unless you are in a 2 horse town post code.
ta
\rolf
ta
rolf
Kristine has it covered.
The LMI on LO Doc loans through most banks (balance sheet lenders) kicks in at 60 % with no coverage required to that point. ABL is an exception at 76 %. Most banks that require LMI will want you to pay the premium regardless of the loan size
Coverage for securitised loans tends to be required regradless of the LVR, Rams, Maq Bank etc. Who pays and when varies with the loan, most No docs, you get away with up to 500, most lo docs similarly with some exceptions.
Build Loans are generally OK with many lenders BUT depends on th whom :O). Some will also lend to unit trusts.
WA should not be an impediment, there are a couple of lenders that are not licensed in WA, but the majors all are so the same product mix should be available..............unless you are in a 2 horse town post code.
ta
\rolf
ta
rolf
Thanks Rolf,
How about a 3 horse town ? ( but thye're all one trick ponies...)!!
Never mind, the postcode curently qualifies for 95% lvr with the big 4 lenders but may be different for construction, or vacant land.
Its 6714 btw...
I think my problem is a broker one and not a lender one.
Thanks for all your input.
kp
How about a 3 horse town ? ( but thye're all one trick ponies...)!!
Never mind, the postcode curently qualifies for 95% lvr with the big 4 lenders but may be different for construction, or vacant land.
Its 6714 btw...
I think my problem is a broker one and not a lender one.
Thanks for all your input.
kp
Hiya
The postcode can mean very very very little
I have a client this week where we bought 2 ips, neutralish cashflow in a regional QLD 4 horse town, PMI says 500 k to 90 % no problem.
Put the deal up, one they take at 144 k, the other nuh, we dont have enough comp sales.
So, the data says one thing and reality is often another, so please dont act in reliance of that information provided by the LMI people, its dangerous for your well being !
ta
rolf
The postcode can mean very very very little
I have a client this week where we bought 2 ips, neutralish cashflow in a regional QLD 4 horse town, PMI says 500 k to 90 % no problem.
Put the deal up, one they take at 144 k, the other nuh, we dont have enough comp sales.
So, the data says one thing and reality is often another, so please dont act in reliance of that information provided by the LMI people, its dangerous for your well being !
ta
rolf
