Forums / Getting Technical / Finance / Increasing the limit on existing lines of credit

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  • Profile photo of Property BuyerProperty Buyer
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    @gaucij
    Join Date: 2018
    Post Count: 4

    Generally, how are the financial institutions currently treating requests to increase existing lines of credit ? For instance, if I wanted to increase these to 75% LVR, how should I expect them to react to such a request ?

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,110

    you are borrowing money so you must meet all the usual requirements, including ‘cash out’ restrictions.
    business as usual.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Property BuyerProperty Buyer
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    @gaucij
    Join Date: 2018
    Post Count: 4

    Thanks Terry,

    I’m not familiar with cash out restrictions. How do they typically work and what do they involve ?

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,110

    banks basically don’t want to give borrowers borrowed money without a purpose. Small amounts may be ok, but larger amounts they will want to know what you are going to use the money for and they may want evidence too

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Property BuyerProperty Buyer
    Participant
    @gaucij
    Join Date: 2018
    Post Count: 4

    thanks again – best wishes

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
    Join Date: 2010
    Post Count: 5,065

    Generally, how are the financial institutions currently treating requests to increase existing lines of credit ? For instance, if I wanted to increase these to 75% LVR, how should I expect them to react to such a request ?

    All depends on the lenders policy and your borrowing capacity.

    Some lender are still ok with cashouts up to 80% for investment purposes – it generally involves a full application process.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

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