Hi there

welcome aboard.

The short answer is that it's not possible.

To fund a property purchase you'll need to contribute at least a 5% deposit and enough funds to cover costs. If it goes up in value in the future you might be able to access equity and pay out your personal loan – that could take a while though.

Cheers

Jamie

Wow – that's incredible that someone would act like that. 

What were they planning on giving you in return for $7k!

These sort of spruikers need to be stopped – it's a joke.

Cheers

Jamie

At 90% NAB are still going to want a full val. I think it's worthwhile pursuing but there's still the risk of the val coming back with issues due to the lack of comparables.  Don't get your hopes up but it's worth a crack.

Cheers

Jamie

You could try ordering some upfront vals with other lenders using a different LMI provider.

Which bank said no?

Cheers

Jamie

Hi Nathan

I was just running the numbers for some clients and thought I'd quickly run your scenario before I closed down my software (yes – I'm a finance nerd that needs to get out more).

Good news – your borrowing capacity is much higher than what you've been told. UNLESS you've got some liabilities that haven't been mentioned.

For instance, I just ran it on a $300k IP purchase and it services fine based on your income, the proposed rental income, no liabilities and your available deposit.

Cheers

Jamie

Just start with an informal chat about the sellers motivation, if any offers have been put forward, etc. Just try and gauge how much it might go for and then provide a formal offer.

The process depends on the state you're in as well. For instance, in ACT you might get away with a verbal offer – but in a heated NSW market, they may want you to sign a contract with a cooling off period.

Cheers

Jamie

1. If it's set up as an interest only loan and not a line of credit then yep – should be the same or possibly lower if your broker can negotiate it down for you.

2. I usually get them to lower the rate on the new and existing loan on the premise that you're borrowing more.

3. If loan 2 is being used for investment purposes then yes.

Cheers

Jamie

Why not keep an eye on both markets?

You won't become an expert on every suburb in each city (they're too massive) – but there's nothing stopping you from familiarising yourself with a couple of areas within each city. Start with internet/phone research and once you're keen to make a move – visit them in person.

Cheers

Jamie

Agree with above – there's often other avenues to consider before bridging finance.

Which lender is your current loan with?

Best to speak with a broker/banker about your options. A decent one will outline a few options and the pros/cons of each.

Cheers

Jamie

The thing I dislike about new properties is that the vast majority of the time there's middle men making large profits – and it's the buyer that's paying for it…..and if it's an off the plan property, that comes with a whole other set of risks to consider, especially if the development isn't due for completion for quite some time.

Cheers

Jamie