Non-banking lenders for property investment

[sazu]

Hello all,

Thinking of refinancing an existing IP to Liberty (or some other non-banking lender) because of LVR issues? Please share your thoughts.

Cheers.

[Wellington Broker]

What are you trying to achieve here? Do you have another property lined up?

[sazu]

That's correct. Planning to buy another IP, but that's possible only if I could refinance the existing IP for 20% security (i.e. market value 593K and I am hoping to get 475K cash)

[Wellington Broker]

You're looking at a pretty high rate with Liberty (starts at 7.65% for 80 LVR). Resimac could be an option if you have an owner-occupier to move as well. NZCU Baywide is another option so long as you have less than five properties and everything in personal/trust names.
Newly built/off the plans properties are an option with deposits from 5% as there are no LVR restrictions

[sazu]

That's very useful. Thank you. New build/off the plan appeals the most.

You're looking at a pretty high rate with Liberty (starts at 7.65% for 80 LVR). Resimac could be an option if you have an owner-occupier to move as well. NZCU Baywide is another option so long as you have less than five properties and everything in personal/trust names.
Newly built/off the plans properties are an option with deposits from 5% as there are no LVR restrictions

[brokerman]

ANZ have a great product for purchase off plan, 85% and unconditional offer valid for 12 months. Best I've found so far and non Banks being reigned in at present, just so you know.

[sazu]

Thanks for the info brokerman. I will try ANZ.

[Wellington Broker]

ASB are also very good for off the plans and will lend above 85 LVR

[brokerman]

ASB are also very good for off the plans and will lend above 85 LVR

For investment?

[Wellington Broker]

For investment?

Pretty sure. Will ask them on Wednesday

[brokerman]

Pretty sure. Will ask them on Wednesday

Be good to confirm!

[Davo36]

and non Banks being reigned in at present, just so you know.

Can you expand on this please brokerman?

[brokerman]

Can you expand on this please brokerman?

Sure. A lot of non Bank lenders are funded by Banks. Westpac, BNZ, ASB etc and the RB has said that they expect that the warehousing facilities granted by Banks to non Bank lenders be included. Sovereign is a non Bank but being owned and funded by ASB they have to conform. Funding lines outside of Banks is not affected so lending can still be done, if at a higher rate. Hope that helps!

[Bobsyouruncle]

RB really being pricks about this aren't they!

[Wayne]

RB really being pricks about this aren't they!

Or trying to protect the banking system?
What is the difference in risk (to the bank and therefore the banking system) between loaning to person A direct or loaning to B who then loans to A (and you know this WILL happen)?