95% or 85% Lend??

Viewing 4 posts - 1 through 4 (of 4 total)

Troy
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@troy
Join Date: 2003
Post Count: 0
August 20, 2003 - 2:50 am
Steve love your book! Have friends and family buying and reading it!
Q. Looking at 2nd IP in country area. Local lender will lend 95%
While city banks will allow 85%. Do I change over both IP to local lender at 95% (Which is NAB)Which means less deposit (Then more money to get another property) but more monthly repayments or go with the 85% More deposit less repayments. Just starting out looking for direction. Many thanks Troy
http://www.averagetowealth.com
wilandel
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@wilandel
Join Date: 2003
Post Count: 761
August 20, 2003 - 2:57 am
Hi Troy,
If you are looking to only have one or two IP’s then the 95% lend is probably best. Why use your own money?
But, if you are looking for several IP’s then you should be looking for an 80% lend. Otherwise the mortgage insurancer will say – “NO more loans, too risky”.
Steve & Dave always use 80 / 20 loans, as do most of the forumites.
Best of luck,
Del
Melanie
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@melanie
Join Date: 2003
Post Count: 382
August 20, 2003 - 3:14 am
Hi,
Why not just get NAB to lend you 95% on the new IP, leaving the existing one where it is? Often better to spread around amongst different banks, but Del is right about ramping up no. of buys being hard if lend is greater than 80% – probably depends on your circumstances and strategy.
Happy investing []
Mel
willi
Participant
@willi
Join Date: 2002
Post Count: 186
August 20, 2003 - 3:19 am
Also be careful as the higher the LVR the higher the mortgage, and thus the higher the repayments….
Make sure you go over the numbers…
Good Luck
Pete
…Beware of the dreamtakers…