help….!!!

Finance is now a commodity for the investing consumer, you might want to talk to some of the very capable brokers on the forum to get the deal over the line.

Good Luck…G7

I am assuming you are not using a mortgage broker. If this is the case I suggest you find a good one (good ones are on this forum). Terryw is quite good, as well as Stuart Wemyss and Simon Macks.

This is why I use Mortgage brokers, they have all your details and if you are declined by one lender they can resubmit to other lenders (alot of the time the bank that has declined you will probably notmark your CRA), while people who don’t use mortgage brokers can waste a large amount of time submiting and re-submiting loan applications.

As for you problem, you can either take the money out of your existing equity ($100K) and pay cash for the property (and then refinance) or you could put down a 20% deposit and hopefully the deal will finance on it’s own.

I would highly suggest you talk to a mortgage broker on this forum.

PasandBec,

Though you have $100k equity, this is on total value of $500k (i.e. 80%) so if you don’t wish to pay LMI I reckon you’re stuck.

But then, you only need $15k as a deposit and costs for a $64k property – can you not use a personal loan or cc to get this? The interest might be a lot higher, but if it’s for a short period why not?

Even LMI for a 90% loan on $64k is not going to be huge. Sounds like you think it’s a deal – is it worth the extra cost of making it happen? With a 90% loan, you only need to find $8500 + LMI cost ($1000 ???) You sound keen on it.

Benny

OK the basics, ppor and ip total value is$500k as far as the bank is concerned, total to date borrowings is $410k. That is already $10k above the standard 80% that banks like as their comfort zone before charging great amounts of mortgage insurance.

So with a ppor loan you could get upto 100% loans and it seems you did. For any redraw to be comfortable for the bank it usuually needs you to be below the magic 80% LVR before they will rethink things.

There are 2 or three lenders that charge 10% on your money and will go over this. You do however have these level 3 lenders listed on your CRA when you next apply for loans down the track and this can be looked at disfavourably when approaching a tier one (major bank)lender.

So Each loan and lender has advantages and disadvantages you really need to consider before jumping in.

Basically if you are so keen to get the second IP, you need to strongly consider different lenders through a good, yes it is important to have a good, broker.

410/500 now doesnt shine as far as affordability or dripping with equity. Maybe let this one go and catch the next bus due shortly.

DD

Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!

Besides your properties apparntly being cross-collateralised, which you still have not confirmed or denied, you might be facing serviceability issues.

If your properties are NOT cross collaterilsed, it is a simple matter of increasing the loan on your first IP to 80% and also borrowing 80% against the new property. This assumes you can service the additional debt and you don’t want to pay LMI.

Without providing all the information, you cannot be given the correct advice.

ARE THE PROPERTIES CROSS-COLLATERALISED (ie: one loan over both existing properties or they are linked as security)??????

TMA

Don’t get too excited yet. The scenario I outlined was dependent on the properties NOT being cross-collateralised.

Your only option, if your current lender will not let you borrow more than 80% LVR, is to seek out another lender who will let you borrow 90% or even 95%. You will definately be up for LMI but you don’t mind. I didn’t miss that.

Many of the brokers here can refinance you out of the current situation into a higher LVR across your two existing and your third property. Just make sure your structuring is correct so you don’t encounter the same problem.

PS: I hate BankWest!

TMA