All Topics / Finance / Increasing Borrowing Ability by Income Leveraging
In Steve’s book “From 0 to 260+ properties in 7 years” on page 154, he said:
” … Financers will be reluctant to lend any money unless I sign on as a guarantor and lend my debt repayment ability as a guarantor to secure multiple loans, thereby allowing me to control FAR MORE PROPERTIES THAN IF I WERE BORROWING IN MY OWN NAME” (note: the capitalization is mine)I don’t understand this. On a bank loan application, there is a question on your total liabilities and it specifically asks the applicant to include all loans in which he/she is a guarantor. This means whether or not you are borrowing in your own name or as guarantor, the total amount of money you can borrow will be the same. Pls explain.
Thanks, grace
I don’t understand it either.
Some application forms do not specifically ask for the applicant to list all loans guaranteed as well as those taken out in personal names.
However, a credit check will show up guarantees as well. If it does, then the lender may ask questions – not always though.
Terryw
Discover Home Loans
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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