Hi I was wondering if there was anyone who could offer me advice on finance. Basically I have heard that you can borrow for a deposit and then go and get a loan for the property. I was wondering if anybody in here has done that. I would like to have my finance in place before I make any offers on an investment property.
Regards
PhilAs long as you have a good income, you could borrow 10% deposit (plus costs) and then get a 90% loan. YOu must be able to demonstrate you can service both loans though. Usually personal loans are short – up to 5 years and have a high interest rate, so the repayments are fairly high, making it hard to service.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thank you Terry
I also heard from a property seminar I attend a few years ago that it was possible to arrange a line of credit for deposits with no colatoral (hope I spelt that right). The guy was talking about obtaining property with little income or on social security. By the way I’m not on social security. Had the same job for 6 years. I’m just exploring avenues of getting finance. Will have a deposit saved by the end of the year but still would like to try it with opm.
PhilIf you have a good income, stable employment, you could get a non secured LOC. But the interest rate would be high – maybe 17% and the amounts generally less than $30,000.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Phil,
There are also 100% loans available from a few lenders, although I think they only lend for owner occupied properties.
Regards
AlistairI know about a few loans from well known builders that let you borrow 100% of the loan through morgage brokers. But Terry what I am looking for is two totally different loans for deposit and morgage. I have heard that is possible. As a morgage broker have you ever come across that.
Regards
PhilI work at a Bank and as a rule we tend to frown on that sort of thing. However, that being said if you can afford the two loans, anything is possible. Some Banks do have policy that prohibits it though.
Yep 17% is high we are going to late 80s interest rates with that. I guess I can shop around and get a feel for what is going on as well as recieve advise on what, where and how I can work it. Like i have said I will have a deposit saved by the end of the year so a loan shouldn’t be to much of a hassle with nearly 3000 lenders out there maybe even a bank
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