All Topics / Finance / getting harder to get loans

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of NevenNeven
    Member
    @neven
    Join Date: 2004
    Post Count: 2

    My problem is that while i currently have 5 properties and operate my own business, it is getting harder and harder to get loans. The biggest difficulty is that the businesses create little as far as taxable income and by the time depreciation and tax writeoffs come into play they do not, in the opinion of the banks, allow for further ability to service more loans. I have the asset base and the equity in the assets should allow comfortably for additional purchases, but im starting to hit dead ends. any suggestions?

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

    Get a decent broker!

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

    NODOC Loan – 65% Loan – No questions asked! 6.85% Rate!!

    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 TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    You are just looking in the wrong areas. You have lots of options open to you such as:
    – Lenders that allow business add backs (may not work for your case)
    – Low Docs
    – No Docs
    – Pure Asset lend type loans where they don’t care about your CRAA, Income, Asset levels etc

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598

    Be careful using low doc loans. If you declare a higher taxable income in a loan application compared to your tax returns it could come back to bite you. The ATO can check this.

    Always be honest.

    Cheers

    Stu

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    Neven,
    This is a common problem many investors face at one time or another,
    Talk to a couple of Brokers.

    Regards
    Steven
    Mortgage Broker

    [email protected]
    http://www.mobilemortgagemarket.com.au
    Ph:0402483216
    Ph:1800 820 500
    VICTORIA

    PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

    Profile photo of NevenNeven
    Member
    @neven
    Join Date: 2004
    Post Count: 2

    I currently have a range of loans including both low doc and documented loans. The difficulty is as suggested that the low docs require a statement of income that i cant justify on tax returns but have no difficulty with covering the repayments from tenants and in covering through my LOC in times when a tenant may not have been found. It is easy enough to say ” get a better broker” but in truth the broker has been very helpful and has tried many avenues. Naturally each are limited by those lenders that they deal with, but my loans span ING, Suncorp, CBA, and ANZ… so its not as if alternatives havent been looked at.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    it is generally getting harder to get loans. Even with low docs, there are various restrictions and maximum exposure levels. It may just come down to how badly you want more loans. If you have equity, they can always be arranged, but you may have to pay higher itnerest rates.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 7 posts - 1 through 7 (of 7 total)

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