Forumites
Been trying to put to bed the purchase of a 5th IP (to come to $1.35M total with a LVR of about 82% overall) and we are going through some lending woes.
Using a broker, she has been trying to find the best rates and deals and has just managed to.
I am basically self employed and been so for 15 months in the engineering industry (and in the same industry for 17 years) and getting a loan this time around has been a tad more difficult. Only 60% LVR but a good rate.
Is this what I can expect. Get to about the 5th property and things get a little bit more difficult? Being self employed would not have helped but will it after having 2 year’s worth of returns?
Of the 5 properties only 1 is -CF with all the rest are in the black and can support each other on their own without any input from me.
Is this similar to expereinces of others here. What else could I expect and how does one break out beyond this “barrier”.
Later………
If you think you can you can, if you think you can’t you can’t.
One of the cheapest lo doc on the market is around 6.9% to 7.2% and thats at 80% lvr. With lo doc loans you really have to look across the whole market as the interest rates & deals can vary considerably. 60% lvr sounds like one of the banks, which are pretty inflexible with lo docs and do very low lvrs.
If you have don’t have a high income, then there will be a limit on how much you can borrow. Having 2 years financials will help – if they are good.
You have the option of low docs, but these are generally 80% LVR and rates can be higher. One thing you have to watch out for with low docs is that most are mortgage insured, and the two mortgage insurers ahve a maximum exposure level of about $750,000 and $800,000 each. ANd that is not individual loan, but combined loans across all banks. So plan well now.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
17 years same industry (15mths self employed) should be ‘win’able – as long as your cashflow supports the borrowings.
can u explain the 82% and 60% thingy please, really lost me there. are you x coll on everything?
cheers
brahms
CALL NOW…adults only (boys and girls ask mummy or daddy first) ~~ 1900 HOT BROKER ~~
You must be logged in to reply to this topic. If you don't have an account, you can register here.
