I have 3 properties and wish to buy more. My challenge is that my wife is giving up work to have our first baby. The bank has only my wage and the rent from the two investment property’s to work out if I can afford the new loan.
I have a loan to value ratio of 75% with about $141,300 in equity.
One option given to me is to get a low doc loan, but i’d have to setup a trust first. Plus the interest rate maybe higher. And the banks will only lend up to 60-80% of the value. I don’t have the 20% deposit unless I re-finance some of the other properties, which is a costly expense, as two are fixed interest. And the setup of the trust is costly as well.
Has anyone got any ideas on what I could do.
You don’t have to set up a trust unless you choose to do so. LODOCs don’t need a trust.
You may be able to use normal loans – depending on the figures. Approach a broker and ask them to run the numbers for you against all the lenders.
All the best,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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