Hi all, just a quick question about borrowing etc.
We currently have a 3 bed home that is worth $340000 and the mortgage on it is $280000.
We are having another baby and need to move to a bigger home but would love to keep this one and rent it out.
As our LVR is high, what are out options for borrowing for another property, will we just have to wait and save another deposit and for stamp duty etc, or is there lenders out there that will refinance us at a high LVR?
Hope this makes sense!!
Thanks
You could borrow up to 90% of both properties. So (add up the value of the current one and the future one) x 90%, then minus the existing loan and that is the extra amount you could borrow – subject to serviceability.
Some banks may allow existing customers to got o 95% too.
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
As Terry has mentioned 90% even 95% would be possibly available however the mortgage insurance would be fairly hefty and need to be deducted from the loan proceeds on a refinance at that LVR.
Guess it all boils down to the Banks valuation of your current property.
Richard Taylor | Australia's leading private lender
if they do it like that, would it be Cross Collaterised?
Possibly as 95% lvr is almost impossible to get without using PMI as the mortgage insurer.
Not ideal but sometimes you dont have a choice.
Richard Taylor | Australia's leading private lender
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