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  • Profile photo of everdineeverdine
    Member
    @everdine
    Join Date: 2003
    Post Count: 119
    July 4, 2004 - 3:22 am

    Could some-one please explain the following for us.
    We have IP1 and IP2 which we put down a 20% deposit on each. Now we want to buy IP3 at 100%, drawing against our other IP’s. What figures do lenders use to work out what we can borrow? We are getting them both revalued.

    Thanks, Diane

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    July 4, 2004 - 3:28 am

    Diane,

    The lender will look at the total valuation for all three properties and then compare the total loan size. If it stays under 80% then the loan will be quite simple with no LMI – depending of course on your incomes.

    If you have seperate lenders then top each of the existing properties up to 80% of the valuation and use this cash as a deposit.

    Hope this makes sense.

    Ask more questions if you need to.

    Regards,

    Simon Macks
    Mortgage Broker
    http://www.mortgagehunter.com.au
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of everdineeverdine
    Member
    @everdine
    Join Date: 2003
    Post Count: 119
    July 4, 2004 - 4:47 am

    Thanks for the quick responses.

    We are having the valuations done for free as the lender’s valuer did a “bad” valuation the first time, and they offered to do both properties for us.
    Also we wanted an idea of how much we could borrow.

    We are also tryng to way up whether to sell one property as we haven’t got tennants in there and we could make a few thousand quick profit. It’s a good area just slow to get a good tennant.

    Will go and do some sums.
    Thanks again, Diane

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544
    July 4, 2004 - 6:59 am

    HI Diane,

    The lender will also consider your ability to service the loan by looking at your income level, which includes your rental income. Some banks only recognise around 75% of rental income whereas HSBC, for example will accept 100%.

    A good broker will be worth their weight in gold at this stage of proceedings as different lenders have different products, servicing rules and so on. A borker with access to numerous banks will have the right product for you and your situation.

    Derek
    [email protected]

    Property Investment Support Available. Ongoing and never stopping. PM welcome.

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