I am often told that customers have gotten different figures when approaching the banks direct and when getting their borrowing capacity done on the same lender with different brokers.

It seems most bank estimates are on the low side. this is probably due to the bank’s (untrained?) staff not doing it properly by adding anticipated rental incomes etc.

On the other hand, some brokers seem to try to gain clients by getting their clients (or saying they can get) as much as possible and may even leave out little things (eg children, or credit cards) and/or exaggerate on the potential rental incomes of IPs, just to make the figure higher. (it is like some real estate agents exaggerating price to get a listing).

Get the person doing the calculation to tell you what they have included so that you can see if they have left anything out.

Terryw
Discover Home Loans
North Sydney
[email protected]

unforseen things that can happen include:
-one or more parties deciding they want to pull out prior to completion.
-blow out in costs, one or more parties not being able to come up with more money
-one party going bankrupt or getting into some trouble. creditors could possibly come after their asset.
-borrowing capacities being effected-may prevent you from doing other deals
-All parties, jointly liable for the project.

These can all probably be resolved if you plan ahead.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi Scarecrow

Most brokers have access to these types of funds. LVRs are around 70%, but can go up to 80%. rates can vary depending on the security property type and location etc. Generally, these are easier to qualify for and some do not even do a credit check.

Terryw
Discover Home Loans
North Sydney
[email protected]

try either of these:

http://www.strategicwealthmanagement.com.au

http://www.mintgroup.com.au

Terryw
Discover Home Loans
North Sydney
[email protected]

Brendon

Good point, but you still need to qualify with the added repayments for your personal loan, and you generally cannot borrow 95% on a refinance, the standard is 90% max. Royal Guardian can do a 95% refinance tho.

Terryw
Discover Home Loans
North Sydney
[email protected]

Ben

That is a good strategy that you have described. ie set up a LOC (or redraw, it doesn’t matter) and then take deposits from this account for the new IPs.

When you go for future loans, the lenders will want to assess yuor serviceability on the full limit of the LOC, not just the outstanding balance, so it will affect your serviceability in that sense.

Terryw
Discover Home Loans
North Sydney
[email protected]

Jarmbie

That’s correct. Even if the company owning the property has just been established, Macquarie (an virtually all lenders) will lend to the company. But to get a low doc loan, the director or applicant must be self employed for at least 2 years. This is proven by the date of establishment of the ABN.

Terryw
Discover Home Loans
North Sydney
[email protected]

Your current lease probably prohibits this without the landlords written permission. So start by checking it, and then write to the owner if necessary.

Becareful of things like damage to the property. If the new tenants damage it, you will be liable to the landlord.

Terryw
Discover Home Loans
North Sydney
[email protected]

Ian

It seems too good to give up. What about investing in other areas.

Terryw
Discover Home Loans
North Sydney
[email protected]

Try Lewis O’brien. (search on google?)

Terryw
Discover Home Loans
North Sydney
[email protected]