Hello,
We currently own an investment property worth 475k and owe $230k on it. We have drawn 2 lines of credit of it, with a value of 140k, which is currently undrawn. My husband earns about 95k, and i earn about 4k and stay at home with my 3 kids.
We pay about $150 rent, and have no other debt.
We get $450/wk for our current IP, which is about CFNuetral to +ve.
I just got off the phone from Bankwest, cos i wanted to find out how much we could borrow to buy an IP, and was told about $40k!
This seems rediculous to me, how the hell does anyone get finance if they wont lend to us?!
Cheers,
JessHi,
Talk to a good broker.
Buy the way CBAs calculator, with your info said you could borrow about $160000
It still seems really low…. I want to borrow about $340!! then use part of the the LOC to renovate it, then rent out.
We can easily repay both mortgages with the house leased out, we have such low expenses, good income and no debt that needs our income to repay it. Plus a great savings/repayment history.
A broker will be the way to go for sure.
J-Lou,
I have similar LVR as yourself, (only different amounts) and recently purchased a property and went through hell with finance companies, such as Bankwest/Commbank, Westpac, Anz and Nab.
I have savings / loan history of 25 years with Westpac, and this did not help. (Cringe every time i see the “bank you can bank on add” !!)
Ended up having to go through a ‘unconventional’ finance company, called La Trobe financial. their rate was slightly higher but the deal went through without to many hicups.
Best of luck
Get a broker, Private message QLD007 (Richard Taylor) to get another opinion.
But definitely get a broker. Yes westpuke are jerks but at least with a broker you don't have to wade through the garbage. Try setting up on a self-employed income, the documentation is awful. Once you are set up with a good broker it is almost smooth sailing after that.
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeYou've got over $100k of equity, say $80k if you are avoiding LMI. New loan of $340k shouldn't be too big an ask if the financier is aware of the rental scenario.
Has anyone heard of Nooo Commissions before? I just found them on the internet.
I am perfectly happy to go for a non-bank lender, I have found them in the past to be way better than the big 4. 'My Rate' has been really good, but don't offer offset account, which i need this time.
Cheers, will PM Richard.
Hi Jess
Hate to say nothing suprises me at the moment in the finance market with some lenders.
Everyone is looking to reduce their risk profile and would rather walk away from doing the deal than over expose themselves.
In saying fear not some lenders are still lending believe it or not lol.
Richard Taylor | Australia's leading private lender
Hi, even though you have not drawn any money from your line of credit, the bank will still factor in this available amount of money as though you have already drawn this line of credit out to it's total limit. Therefore they would be working on a loan amount of $370,000 that you are liable for. You have not mentioned if you have any credit cards and what limits they have as well as any personal loans or car loans, HECS debts store cards etc. All of these debts will be considered by the bank. Therefore if you have a credit card limit of $10,000 they will factor this $10,000 into the equation even if you pay off the card in full each month. Good luck with your endeavours
cheers
Sonya
Apologies,
i just reread your post and saw that you mentioned that you don't have other debts.
Cheers
SonyaIf you have $140k in LOC and owe $230k, thats a total of $370k exposure on the $475k loan. staying under LMI you can only borrow another $10k (80% of 475 is $380k) by my calcs and about $57k if paying LMI at 90%. Sound like you will be cross collaterlised too.
if you want to borrow more, you will need to use your LOC as a 20%deposit (or 10% if you are prepared to pay LMI) and go through a different lender.
KT
ktastrphe wrote:if you want to borrow more, you will need to use your LOC as a 20%deposit (or 10% if you are prepared to pay LMI) and go through a different lender.
KT
That is exactly what I'm trying to do
I don't want ot be cross-collaterised.Can I ask why you are not using your line of credit to pay your deposit? With $140K available you would have a sizeable deposit for one or more properties, well above the 20% usually required as a deposit. cheers Sonya
Jess intends to use the LOC as part deposit but by doing this it does not increase borrowing capacity.
Richard Taylor | Australia's leading private lender
I don't want ot be cross-collaterised.You must be logged in to reply to this topic. If you don't have an account, you can register here.
