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About Me

Otto Toth

Finance Broker
Mulgrave, Victoria

My Activity

Q: We have had a few issues that have affected our credit rating but things have turned around and we now have around 20% deposit for a new home. Will our credit rating stop us from getting a new loan and what options do we have?
A: Depends on the timing, type of credit issue and the amount. Generally under 80% lending will be more flexible. Check out your Veda report and speak to a broker, you need to get specific with these sort of things but you still have options.
Q: What lenders cap LMI above 95% for Owner Occupier, other than BoQ to 99%, Bankwest to 98%?
A: Me bank for first home buyers
Westpac as well I think
Q: I am 67.. Can I still change from my current lender to another lender and still have 20 years to payback the loan Thanks ?
A: This depends on a few things. Most lenders will look at loan maturity to age 75 so if your 67 then you should expect a loan term of maximum 8 years. Lenders will look for an 'exit strategy' ie what are you going to do it you can't make the repayments, this can be mitigated for investment lending or if you have a string asset backing. Remember, if your bank won't do it, doesn't mean their competition won't.
Q: I work full time as a floorsanderer and want to buy a houseboat to rent out. I have a 50k caravan that I could sell for a deposit & about 10-20k in savings. I need about 250k all up for the boat. No house as security. Can any1 help? I expect 50k+ income
A: Try getting in touch with a commercial lender who does equipment and vehicle finance as well, that's a good place to start.
Q: How can I find out what mortgage insurance will cost for different lending ratios above 80%?
A: LMI costs vary from lender to lender, but for a rough cost you can go to genworth or qbe website and use their calculator. Also note some lenders won't charge LMI to 90%, conditions apply.
Q: We are not having much luck with the banks for the fit out of our cafe. A broker has mentioned a lender called Prospa - never heard of them so does anyone know much about them?
A: Hi Alan, we may be able to help you. Get in touch.
Q: I have two credit cards (both nearly maxed out), a personal loan and a home loan. Should I consolidate everything into my home loan to save on paying interest?
A: Yes
Q: Does the term of my home loan always have to be 30 years? What if I want to put some pressure on myself to pay it back earlier?
A: The maximum term is typically 30 years, this doesn't mean that you can't pay it off sooner. From memory the shortest term option is 8 years. But why put yourself under that pressure? Calculate the repayments at 8 years, and simply make those repayments but keeping a 30y term. Remember Life happens in the meantime and you won't always have those extra funds to put in. And when that happens, it's good to have the lower minimum monthly repayments of the 30y term.
Q: How come when borrowing money using the equity in my property to invest in shares the interest rate is different to that of my home loan?
A: When submitting an application for finance you'll need to state the purpose of the funds. This can either be for investment or own purposes (like renovations). In the current market investment rates tend to be slightly higher than those for owner occupied purposes. This varies from lender to lender though so worth looking around. Hope this helps.