Hi,
I am new to investing and have found a property we wish to purchase. The problam is our current propery (was originally owner ocupied) now will need to be re-financed to access the equity to purchase the new investment propery. To have enough we need to find a lender who will lend 95% on investment properties otherwise we fall short of costs by $3000 (i know it’s not much in the scheme of things but we just can’t get it any other way).
Does anyone know of a lender that will lend 95% on investment properties?
TIADear Linda3
ING bank lends 95% on investment loans but the mortgage insurance is high. Ring a broker, they’ll be able to tell you. Good luck![8D]
Linda3
This not an easy one to answer. Some lenders will consider lending 95% but it really depends on the borrowers situation. If the lender is taking a higher risk on the security (i.e. by lending 95%) side of things then they will want to mitigate that risk on the serviceability side of things (i.e. you need to be able to easily be able to afford the loan). Perhaps the lender may also consider an accelerated repayment arrangement (where you reduce the LVR to 90% over 3 year). The lender will also consider your current loan. If you are ahead in your existing loan repayments then that a good sign.
Difficult to answer yes or no.
Cheers
Stu
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