How do you use the equity in your rental house to buy another?

[Ivanhoe]

Stress loading is only for serviceability it's not what you are actually charged!!!

well i guess it's obvious in the context we are discussing, isn't it?
What about fees and interest rates?

[Scott Miller]

Fees and interest rate vary depending on the loan size and type required

[Ivanhoe]

Fees and interest rate vary depending on the loan size and type required

great, thanks for that.
Will the interest and fees usually be higher compared to 80% or even 95% loans though?
Lets say 100% finance, 25 years P&I, $240,000 joint income $100,000 pre tax - what the weekly payments would be like?

[Scott Miller]

yes - no shaving on 100%.
You cannot have a 25 year mortgage on 100%, 20 years max

[Ivanhoe]

yes - no shaving on 100%.

sorry, can you clarify this?
Also - 20 years is used for qualifying or ACTUAL mortgage should be 20 years or less? And what about payments?

[Scott Miller]

Both 20 years

[Ivanhoe]

Both 20 years

OK, that's VERY interesting.

And what about payments?

I'm getting around $500 p.w. based on the scenario above, does it sound right?

[Scott Miller]

sounds about right.

[krispedersen]

Ivan,
If you are asking this to qualify your tenant buyers. Nationwide (a part of the ANZ group) will allow 25 year terms on their 100% loans. However there may be an additional margin on the interest rate to compensate for the extra risk

Are you still coming up on Friday???

Cheers

Kris