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What is an LVR ?

A loan to value ratio, a ratio used by lenders to ascertain your equity levels

A loan rating versus risk, used by the banks to ascertain your credit rating

Likely value record, a system used to value your property

What is a DSR?

It is a hidden fee charged by the banks

It stands for Debt Service Ratio and is used to ascertain the level of equity in your property

It stands for Debt Service Ratio and is used by lenders to determine your ability to service the loan

It is bank jargon used for bad risk clients, it stands for Decidedly Silly Risk

You take a cheap rate loan that asks you to combine your home loan and your investment loans into one facility. You think this will save you transaction fees and other costs of more than one facility, and if you place salary against this loan, you will save interest and pay your home loan off quicker. You can spend on a credit card and redraw from the facility to pay off this card. Is this an advisable way to structure your loan?

Yes

Which of the following lenders should you get your loan through?

A lender that values your property on a 'sale within 90 days' basis

A lender that values on a 'Market Value less 15%' basis

A lender that values on direct market comparison based on local sales

A lender that uses the local bank manager to value the property

What is 'cross collateralisation'?

The act of obtaining mortgage insurance, bank approval, and client approval on the loan

The use of equity in all properties that the banks hold security over for the loans outstanding with that lender

The cross selling of bank products to existing customers (home loans, credit cards, insurance etc)

Is it advisable to redraw the built -up equity in an investment loan to go on a holiday, and claim the interest on the full amount?

Yes

What is an 'all monies' mortgage?

What you sign when you buy a house. It secures every debt you have with the bank, ie home loan, credit card, personal loan, overdraft, under the one mortgage.

What you sign when you buy an investment house,as it secures your investment loan and your home loan.

What you sign when you buy a commercial property.

Mortgage Insurance is payable over 80% LVR, at most banks. Some lenders allow you to get a 95% loan with mortgage insurance. Can you borrow $410,000 at a 90% LVR?

Yes

Will banks allow you to revalue your security property in 12 months' time so that you can use the equity for a further purchase?

Yes, always

Yes, but you have to know which ones

No, never

10.

What will most banks say when you ask for a copy of the valuation on your property (which you paid for)?

Absolutely, here it is

Sorry, that's against our policy

Pardon, can you repeat the question?

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