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Hello, We have recently located a property in a rural area which is positively geared with good rental prospects. We contacted a mortgage broker about financing the property however they have stated that they will not lend the money using the investment property as security because of the location of the home (Rural location). They will lend the money to us if we extend our home loan using the equity in our house.
Should we be able to get a loan with a lender where the investemnt property is used as security or is this not possible? Our concern is that if we continue to purchase investment properties by extending our home loan, we will run out of equity and be unable to continue to buy any more properties.
Any assistance would be greatly appreciated.
LISA MARKS
Hi Lisa,
How many Financial brokers you have contacted?Julain []
Is there a bank or credit union where you are looking at buying? If so, that financial institution would probably lend for that location
Drop me an email with the location and the postcode.
I have done many loans for small country towns before, however it will depend on a few things.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
If you are using a low doc it could be difficult. However, if you are using a full doc loan and only want 80% then you should be ok. For example, I know CBA will do 80% just about anywhere. I’m sure Mortgage Hunter will be able to help you.
Cheers
Stu
Hi
To get an idea on borrowing capability for this area, check the postcode at http://www.pmigroup.com.au/LocationWizard.asp
Terryw
Discover Home Loans
North Sydney
[email protected]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
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