All Topics / Finance / Changing lenders

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of wan0151wan0151
    Participant
    @wan0151
    Join Date: 2019
    Post Count: 0

    Hi everyone,

    In order to increase burrowing capacity to keep buying more property, you have to go to different lenders right? My wife and I earn around $140k and so on top of our home loan, we can burrow another 700k for an investment property. That’s what we have been told by Commbank. Would the correct way to approach lenders be going with Commbank until we max out (take a $700k loan for an IP), then approach other lenders and banks that are less strict: eg: ING bank, Citigroup, Macquarie (Commonwealth bank is known for having very strict lending policies) After we approach the banks, we go to the credit unions, building societies and so on who are much less strict with lending. Basically, is the goal to start with the most strict lender and then go down the list of available lenders? If not, how else would you burrow millions of dollars without having a massive income of $500k+ a year?

    Any guidance on how to keep burrowing more money to buy IPs without increasing income from job (promotions, changing jobs etc) would be greatly appreciated.

    Thank you :)

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi Wan

    I think you are confused as there is very little difference between lenders when it comes to servicing post Royal Commission.

    Credit Unions and Building Societies are often more restrictive than more traditional lenders.

    You are better off get the loan structure set up correctly from day 1 to give you flexibility down the track.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of wan0151wan0151
    Participant
    @wan0151
    Join Date: 2019
    Post Count: 0

    Hi Mr Taylor,

    I was told before that between two lenders, the loan amount can vary as much as $300k between two lenders based off the same information (income, credit score, debt etc) Is this not true?

    Cheers

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    No not true on that combined income.

    Cheers

     

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416

    Hi Wan,

    Keep in mind Richard’s earlier comment:-

    I think you are confused as there is very little difference between lenders when it comes to servicing post Royal Commission.

    I noted that English may not be your first language, and that the wording above uses an old word “post” which means “since” or “after”, so reread Richard’s words like this:-

    I think you are confused as there is very little difference between lenders when it comes to servicing since the Royal Commission (had some banks change their lending rules).

    I added a bit more at the end that should help with understanding the meaning of the original comment.   That Royal Commission had some lenders chastised for their earlier lending practises, and many lenders then needed to change the way they did business.   This lead to “very little difference between lenders” today.

    Hope that helps somewhat,

    Benny

     

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Would the correct way to approach lenders be going with Commbank until we max out (take a $700k loan for an IP), then approach other lenders and banks that are less strict: eg: ING bank, Citigroup, Macquarie (Commonwealth bank is known for having very strict lending policies)

    It is probably best to go to a broker who could compare your serviceability across several lenders. I find that CBA is generally more generous than ING for example.

    But like Richard said there will be not a huge difference. Generally not enough to make that much of a difference.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    https://terryw.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://Terryw.com.au/

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    As already said get yourself a reputable investment savvy mortgage broker, hint they have already made themselves known.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

Viewing 7 posts - 1 through 7 (of 7 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.