- Hello, I'm Alex from Prosperity Finance.
Welcome back to our channel.
Today we're going to talk about
Resimac's specialist investment loan products.
We have covered these products in our channel before,
but we're going to talk about it again
because recently we've helped quite a few clients
to buy their next investment property using this product.
And we think under the current lending environment,
with such strict assessment policies across the board,
this is really a great tool for investors
who is willing to further expand their investment portfolio.
So today we're going to go through
a few of the key points of this product together
and see if it's a suitable product for you
and if it can help you with your further future investment.
So let's start with the suitable client group.
As I mentioned before, this is really for investors,
professional investors,
who is interested in additional investment
but they cannot raise enough funds through the standard
or the traditional residential home loan products
via banks or some non-bank lenders.
And in addition to that, very importantly,
that is, clients need to have
existing mortgage-free investment properties.
So it has to be investment properties.
You cannot have, you cannot give your home.
If it's mortgage-free, you cannot give your home to Resimac
and it's not suitable for this product.
The key features of this product.
First of all, of course,
the main one is that it's assessed differently
from the traditional home loan products.
So, so the borrowing capacity
may be assessed solely against the rental incomes
from securities that's given to the lender.
And of course you need to approve,
you need to approve that or provide evidence or declaration
that your existing loan can be served without a problem
with your current income expenses situation.
And then the loan term is between 10 to 20 years.
So you can see it's not really a short term product,
it's really designed for long term holding
of the investment property
or for the investment that you're going to do.
And the loan amount is quite flexible as well.
It's ranging from 200,000 to three million
so it can suit a wide variety of investment properties.
And also the acceptable loan purpose is quite wide as well.
So as long it's, it's not only designed
for clients to purchase their next investment property.
As long as you have a legit
or reasonable investment or loan purpose,
this product is really suitable for your goal actually.
Then the LVR that's different
depending on what kind of property
or what kind of security you give to the lender.
It can go up to 70%
if you give them a new build investment property
but that reduces to 60% if it's an existing property.
So that's a, the secondhand one.
And lastly, also a main kind of differentiation
from this product to other products that is,
you have to pay interest only for up to 50% of LVR
against your security and anything above that,
you can pay, you have to pay principal interest.
But basically if your lending
is less than 50% of LVR, the, the loan amounts,
you cannot pay PNI, you have to pay interest only.
And lastly, let's talk about fees and interest rates.
It's from Resimac, so it's not a bank.
And of course the fee is gonna be higher
than products from banks.
The establishment fee is 1.5% of the total loan amount,
which is one-off.
And the interest rates slightly higher than banks
using current floating rates is around 5.59%.
They also provide you options of fixed rates interest,
interest rate, but that's gonna be much higher.
Generally, it's about 2.5 for something like that,
higher than the floating rates
at the time of drawdown of the loan.
So yes, above are the key features
and points of this product
but exactly how much you may get from this one.
Let's just have a quick kind of like
illustration to show you the amount
that you may get from this product
if you give them a, just a simple investment property.
Let's assume that the property
has a home insurance of $2,000 per year,
and the council rates of $3,500.
Then we are also factoring about $1,000 of maintenance fee
for the property every year.
With this assumption,
it really depends on the weekly rental income
of the property.
Of course, apart from that,
you also will also assume that you,
you do not have to have extra obligation
or you, you do, your current income expenses
can cover your other liabilities.
So with these assumptions, the rental income,
if it's about $500, as you can see on the graph,
you can get around $250,000 of loan out from this product.
And if you have higher much higher rental income,
let's say $900 per week,
then your potential maximum loan amount
will be somewhere around $550,000.
And also from that linear kind of line in the graph,
you can see that assessment,
the way it's assessed is quite simple.
And it's really a linear relationship
between your, the loan amount and the weekly rental incomes.
Yes, so generally these are the information.
So we want to share with you,
and if you think this product is quite suitable for you,
please give us a call
and we can do a review on your current situation
and see if you qualify for this product.
Okay, that's it for today.
Thanks so much
and looking forward to see you again next time.
See you.