You have a slight serviceability and deposit problem; both which can be easily fixed….one possible solution is to re-consolidate your debt with your current mortgage but have it linked as 2 separate home loan/account for tax reasons.

Remember you have the advantage of investing young and having some equity in your IP; use it to your advantage.

Refinance with a term loan of $115k + a $20,000 LOC to pay out your personal debt – the $115k can still be claimed for tax as an IP, while the OC can’t as it’s an personal debt as expected. — this results in you having a home loan with an LOC which is a lot better then a $20k CC.

Regards,

Michael

Hi,

Firstly i made a few assumption, each one has a MASSIVE impact on the outcome even if it’s a few $ difference…

1. income of $45,000 ( 40 base, 5 over time…you need to have 6 month proof of over time )
2. No dependent
3. No another debt what so ever- no Hecs, no personal loan , car loan etc…
4. No another income beside salary and rent ( current $290, and new $350)
5. I had to include rent that you pay of “$290 pw” as it’s impossible to declare to a bank you pay no rent but do maintaine work instead UNLESS the home owner is willing to write a stack deck
6. I presume your credit limit is $11,000

—
Borrowing capacity:

1. $226,500 – $250,000 (comfortable range) —

—- Tip—

1. DONT pay down the credit card , yes may sound a bit weird…but if your purpose is to buy a IP you need money for the deposit…deposit is key….with a $0 balance credit card the bank will still look at your limit.

A $7,000 deposit has more buying power then a $7,000 credit card limit, also the new lender will be happy to reduce your credit limit to $0 and pay it out with a separate LOC if required….but they will not GIVE you money for a deposit

2. Do you live with your parents or is the arragment with some frds etc?

3. I suggest you get a copy of your credit file- since you done a few balance transfer this will affect how the bank looks at your file and this will determine which lender you should choose.

Regards
Michael

The loan gets paid off because:

1. Rent increase by inflation atleast while your loan term is remains the same — a $300,000 loan 10 years ago is not the same as having a $300,000 loan in today’s money ( inflation and price of $$)

Cost of money

2. Now for the rent to = mortgage repayment will take some time…this is where capital gain kicks in, if your property goes up by 3-5% each year ( very conservative already). 5% of $300,000 = $15,000 a year in unrealized profit….of coures there be a point where there be negative growth but if you buy right in the right location it should generally go up on a 10 years timeframe

Regards
Michael

There’s a few that will do it…a matter of choosing the right lender; me giving you a list of lenders will not help you as
1. Some of them only deal with brokers ( whole sale funding….)
2. You may not fit their criteria, so chance of rejection can be high if you dont know their policy + too many credit hit will not help your case

Example; one of the bank that may be able to do this is NAB commercial; however one of the issue is they normally use their internal valuers; so the valuation you have is invalid…

Now if you chose to go with one of the lenders that will accept your valuation the rate may be higher or application fee etc…

So a balancing act of finding the right lender + right deal.

Regards
Michael

Def is….
I normally pay $850-950. ( reports charged as per required)

Regards
Michael

If the bank allows you to cross, then that means you have enough equity to have stand alone mortgage without crossing…..so you just have to simply ask them NOT to cross…simple as that.

Regards
Michael

Hi,

This is the first time i heard of this term….reading your response it doesn’t make sense…if the borrower is having financial problem with one of the loan then they most likly would have problem with the another one as well given it’s with the SAME lender and SAME security? just a different loan type….

Regards
Michael

1. Fee’s involved if any
2. Number of lenders they have on their panel
3. Top 6 bank they use
4. Any investment property the broker holds personally and experience in investing

Regards
Michael

Spoken to a commercial valuer, with most Industrial factory they will value it as vacant due to high vacancy rate due to the recent QLD floods…..however some valuers will still consider as tenanted if:

1. you have a 5×5 renewing lease or more
2. Solid tenant ie the tenant is a franchise and has a well known brand but most importantly also needs a min 5 years continue lease from valuation date.

Also on a 70% LVR refinance for a Industrial is def possible because of your location 4217 is an prem area for commercial deals..

Regards
Michael

This is not good, it means they will reject your 90% LVR but still have a “credit” check done so it’s harder for you to move and shop around.

—-

Firstly postcode 4717 is def under 80% LVR, you will not find ANY LEADER that will do this at a stand alone 90-95% LVR, i say stand alone because you can x-cross — but it still means your LVR in affect is still under 80% for the deal.

http://www.genworth.com.au/

YOu can check postcode restriction here – http://www.genworth.com.au/ , theres really only 2 LMI provider in aus – genworth and qbe and they both pretty much have the same or similar postcode list ( note ANZ , St George and another banks do have their own internal LMI- but postcode restriction would still apply to 4717)

Regards
Michael