Hello everyone
I have a property that is currently rented for $1,550 and am anticipating the rent will most likely drop to $1000 per week at the end of September due to the slow down in the mining economy up in Port Hedland. I want to refinance the property which is currenlty valued at $600,000 and the current loan is $278,000. I want to keep the loan the same size that it is now just switch to Interest Only. The problem is I am refinancing another property at the moment and I must wait for a bit before I can even attempt to refinance the above mentioned property. My question is from a serviceability standpoint will I still qualify for the refinance given that the rent could drop to $1000 per week?
Thank you
Nathan
Hi Nathan
Can you ask you why you have to wait ?
In cases like this it is always a matter of taking what you can as when you need it you might find it is not be offered by lenders.
I would probably be thinking about switching to interest only and if you need to extract equity doing so and placing the funds in an offset account linked to the new sub loan as you never know when you may need extra money for another project or investment.
Away from that without knowing details of your entire financials it is difficult to comment as to whether you will qualify for a new loan as it will depend on lots of factors.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard
I have to do my taxes before the accountant will sign the accountants declaration for the other property that I am refinancing. This same accountant is doing my tax returns for me.
I'm afraid that by the time the first loan settles the rent on my second property would have dropped thus leaving me in a position we I could not qualify for finance because of lack of serviceability. I've been thinking that considering 75% of $1000 is $750 = $39,000 and the mortgage repayments would be ~$20,000 then there is plenty of serviceability.
Thanks
Nathan
Hi Nathan
What's the main purpose of the refinance?
Do you need to refinance to another lender? Any reason why you can't revert to IO with your current lender?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Nathan
Would be best to suss out your options with NAB because an external refinance with a loan that's in arrears probably won't be possible. Lenders want to see 3 to 6 month of the outgoing lenders mortgage statements to ensure good conduct.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hate to say with arrears on the existing NAB loan i can't see it scoring too highly on the Banks credit scoring system so switching to Interest only with the NAB is probably not on the card for the time being.
Might be a matter of waiting until you credit history with NAB is improved and you have 6 months of good clean repayment history.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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