Hi there,
1 problem that i seem to constantly be facing is that the banks wont lend me 80% of my property value. I cant find the answer to this anywhere. The only suggestion is to spread your lending across different banks. I have done this but still cant get 80% on my existing properties or against a new one. This becomes frustrating as i have equity that isnt being used and also it will take some time for my income to increase enough to borrow more.
Please let me know if you guys can help.
Thanks
RegardsRob.
Where is the property Rob?
Is it your only property and are you self employed or a on a salary?
If your income is too low, then they won't lend. Maybe you could use a No Doc loan where income is not needed.
Terryw | 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
Any of the major banks (as they balance sheet lend) will lend you 80% of 'their' valuation. The only reason you would be getting a no, is if you do not have the income to 'service' the loan, or if you are self employed, and do not have the necessary documentation /profit/income to do the same. Without more detail, it is hard to say.
All the best.
Rob
As has been mentioned sounds strange but more information would be required to find out why.
Obviously if serviceability is an issue this could be the answer……………
Richard Taylor | Australia's leading private lender
When you say "My Property" are you talking about your PPoR that you have the equity in already, or a prospective purchase?
If you're talking aboput a prospective purchase, I believe institutions use a number of factors in determining the Max LVR – including location (by Post Code) and size of property. I.e they'd be less likely to lend 80% on a small unit in a crappy suburb than a larger unit in a good suburb, simply because their risk is lower…
Of course, I stand to be corrected…
EDIT: I just read the bit that says you already have the equity… sorry.
Sorry for the late reply.
My situation is – currently have 3 titles with ANZ, when the properties were valued they lent me 80%. Also have 2titles with Westpac, when valued they lent app. 68%. All loans are investment loans (tax effective). My issue basically is that Westpac wont loan me anymore, and if 3 titles with ANZ were to be revalued they wouldnt lend me anymore. All the properties are in good inner city locations. The problem is serviceability.
I've looked into the nodoc/lodoc loans and am not too keen. I have a salary income, also have an ABN but no income going through it. I dont want to tell the bank that i have money going through my ABN when it isnt.
Any suggestions?
Thanks
Rob.
Rob
Ok from what you mention all of the properties have rental income coming in.
Most lenders take between 75-80% of the rental income into consideration when working out your borrowing capacity however there are lenders that would take 100% of the income from your existing properties which would obviously enable you to borrow a lot more.
Other factors include the 2 lenders you mention will base your borrowing on a Principal & Interest repayment even though your loan may only be interest only and work out these repayments on an interest rate 1.5 – 2% higher than your are currently paying. Other lenders will take the actual interest only repayment at the actual interest rate.
Adding back some negative gearing will also assist you.
In a nutshell it is horses for course. Shop around and you will be suprised in the difference.
Richard Taylor | Australia's leading private lender
Richard,
Thanks for your reply. Are you able to suggest any lenders that may do this? i've tried shopping around ie: brokers. But havent come up with any solutions.
Any help would be greatly appreciated.
Thanks mate.
Rob.
Hi Rob,
If your getting knocked back from some lenders you should consider a non bank lender, who'll take into consideration 100% rental income.
regards,
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