Hi guys just wondering if anybody knows how to go about getting finance with little or no deposit on cf+ property. Do lenders take into account the cashflow of the intended purchase. My thinking is if the property will service the loan plus some (CF+) then it should be easiers to secure the loan. I have read that they generally take 80% of rent in their calculations. How easy is this?
Hi Juder
Yes most lenders will take the rent on the property you are purchasing into consideration when accessing serviceability on an investment property.
The percentage considered will vary from lender to lender as will the evidence they require to consider it. Some will only take a valid lease others want 6 months managing agents statements and others a valuers opinion of the rent assessment.
Remember when you purchase any property as well as the loan amount to cover the purchase price you will also need to come up with funds to cover the acquisition coss such as stamp duty, solicitors fees, mortgage insurance etc etc
Richard Taylor | Australia's leading private lender
Hi Juder
Yes most lenders will take the rent on the property you are purchasing into consideration when accessing serviceability on an investment property.
The percentage considered will vary from lender to lender as will the evidence they require to consider it. Some will only take a valid lease others want 6 months managing agents statements and others a valuers opinion of the rent assessment.
Remember when you purchase any property as well as the loan amount to cover the purchase price you will also need to come up with funds to cover the acquisition coss such as stamp duty, solicitors fees, mortgage insurance etc etc
Richard Taylor | Australia's leading private lender
Hi Juder
Loans can be taken to 100%+ so that fees and charges can be included. You may find that there is a difference in the the way lenders calculate positive cash flow as a means to service a loan so some supporting income may also be required.
The other thing to consider is that 100% lenders are usually only interested in high population areas 10,000 people or more
Otherwise easy as pieRegards
CraigHi juder
Haivng a cashflow +ve property will only marginally help you getting finance. More rent helps serviceability, but you will still have to meet other requirements such as deposits/equity from other property. There are a few lenders out there that will lend 100% for investments.
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
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