Source of 20% Down on IP

Viewing 8 posts - 1 through 8 (of 8 total)

joelg11
Member
@joelg11
Join Date: 2011
Post Count: 2
February 9, 2011 - 5:51 pm
Hey all – new to the forum, looks like there are some savvy folks with some good experience to share, thanks! I'm sure this topic is somewhere out in the 136 pages of finance posts, but I couldn't find it so I'll ask anyway…
First, my stats:
Own PPOR: around 15-20% equity there.
Have one SF IP: around 22% equity there
have a $75k/yr job and 830 credit
I'm looking to purchase a duplex IP, long term – lots of cash flow opportunities right now.
I spoke with a broker yesterday and he said that they would trace the paper trail of my 20% down payment to ensure I wasn't borrowing it (said they look at the last 2 months). I don't have 20% in cash (around $40k) freed up to be able to do th DP, so I was planning on borrowing it, either from a private lender, family member or some other source (ideas?).
Does anyone know about the regulation here? Do all lenders have this requirement? Any ideas about HELOC for my situation?
Thanks a lot!
JG
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
February 9, 2011 - 9:40 pm
All lenders will want to see that you have sufficient funds to complete piror to approving an application however if these funds have been sourced from family and are sitting in your account prior to lodging the application i cant see an issue assuming everything else is equal.
Of course if the funds are a loan from family and to be repaid with interest then the liability will need to be factored in.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
number 8
Participant
@number-8
Join Date: 2010
Post Count: 333
February 10, 2011 - 5:17 am
The equity in your property will be good, as long as you meet serviceability- paper trail or not……
http://www.birchcorp.com.au
Mick C
Participant
@shape
Join Date: 2010
Post Count: 1,099
February 10, 2011 - 12:02 pm
Just apply for a “non genuine savings” loans- yes it’s 0.3% higher but if it’s a good buy; worth considering.
As long as you can afford it and meet serviceability
Regards
Michael
Mick C | Shape Home Loans
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Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
February 10, 2011 - 8:56 pm
Hi Joel
Which lender are you currently with? As number 8 mentioned, as long as serviceability is fine, it should be possible accessing some of that equity.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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joelg11
Member
@joelg11
Join Date: 2011
Post Count: 2
February 10, 2011 - 9:03 pm
Loan on my Primary residence is through a private lender. Investment prop. is through Bank of America (i just recently discovered this is an Australian site )
What do you all mean by serviceability? Covering the PITI cost with rent?
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
February 10, 2011 - 9:07 pm
Haha, that explains the confusion re the paper trail.
Serviceability = borrowing capacity.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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Mortgage Broker assisting clients Australia wide Email: [email protected]
Mick C
Participant
@shape
Join Date: 2010
Post Count: 1,099
February 11, 2011 - 1:29 am
ahha Jamie, i was thinking "paper trail??" sounds like something from 007…
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone Me
Same Banks. Better Rates. Served With a Passion.