With out doubt lending & the amount you can borrow play an important roll as to what you buy & where you buy. My question is this – How hard is it to get substantial finance for smaller regional towns?? O.k 11 sec sol properties aren’t that hard to find but how many will the banks let you buy??
I forgot something. In steve’s book he talks about buying power. He says that the fact that the houses you buy are positively, geared your buying power should increase as you can meet servicability requirements. But will the banks keep lending to you when you are buying in small towns?? And you still have exposure issues to contend with.
Comments Welcome.
Hi Insider,
In my experience as a broker it really depends on the town you are looking at and its proximity to a major centre. Its not necessarily the Banks that are the villans in this case but the mortgage insurers – so if you are borrowing under 80% of the property value you have more chance. You definitely need to stick to the big 4 but also I have done loans through AXA & Homeside in some unusual areas. I have quite a few of the Banks postcode indicators if you have a particular area in mind let me know and I can check for you.
Maria [
]Maria is spot on. Mortgage Insurers are nearly always the reason why a submitted deal is rejected.
Some lenders have the responsibility for making the LMI decision up to 90%. These guys are quite accepting of nearly all postcodes up to this level.
Find the deal then get an expert like Maria to find the finance!
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I forgot something. In steve’s book he talks about buying power. He says that the fact that the houses you buy are positively, geared your buying power should increase as you can meet servicability requirements. But will the banks keep lending to you when you are buying in small towns?? And you still have exposure issues to contend with.Comments Welcome.
Hi insider,
Servicability can be a problem if you have all your IPs tied up with one lender,
High level Rent relient will be the lenders response when you have reached there max comfort threshold,
To avoid this, Plan ahead, A good broker will help you avoid this problem.
Regards MMMobile Mortgage
[email protected]
Phone 0402483216There are other lenders beside the Big4 that lend in regional areas under 80%lvr. You don’t need to stick to the Big4.
Also, one of the Mortgage Insurer’s recently released a national coverage. So, depending on how remote you are talking, will depend on the LVR.
Generally, if your looking in towns with ok populations,not 1 or 2000 you’ll be right to lend up to 90-95%, otherwise it (lvr) will go on sliding scale of loan amount.
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