If we were looking at borowing for an IP but don’t have a deposit as yet, can the deposit and closing costs be borrowed as part of the loan, if we have sufficient equity on our PPOR?
Kind Regards
Les[
]Hi lewson,
Yes that is possible, subject to the amount of equity you have in your PPR
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Hi Leswon,
As a quick calculator a lender will recognise (and lend) up to 80% of the value of your PPOR – income restrictions may come into play depending on the various numbers.
Here is a little sum for you[
]Value of home X 80% – existing PPOR loan = equity available.
You will need around 25% of the total price of the investment property for deposits and costs.
Buying an IP for $200K – you will need available equity of around $50K to fund the purchase of the property and to pay purchasing and borrowing costs.
This figure can be reduced if you are prepared to pay Lenders Mortgage Insurance.
Hope this helps.
Derek
]
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