I own 2 investment properties and based on assets I look OK but based serviceability I can’t borrow much, if any.
Now & then I come across some great opportunities where I can buy at $X and sell at $X + 20% after all costs taken into account. Is there any lender who will lend based on assets alone (happy with 70% LVR).Hi Robert
Hard to give you a definite answer without more information.
Under the NCCP legislation lenders are required to ensure you can service your current & future borrowings however there are a number of exceptions.
Nodoc lending is still possible in certain circumstances although comes with a higher rate etc.
Often whilst you might think you will not service there are often ways around this by taking a variety of income into consideration.
Cheers
Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.Richard Taylor | Australia's leading private lender
Hi Robert, how long do you hold onto the asset for before flipping?
There are niche lenders that will lend solely based on security.
They generally charge a application fee and a higher interest rate however if there is a good opportunity that you do not want to miss they definitely have their place in the market.
Where are you based?
sure why not, as long as your equity was high enough the loans could self service.
Hi Dean
Just because the loan self services does certainly not under NCCP mean the the deal will be approved as your other circumstances will be considered.
Cheers
Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.Richard Taylor | Australia's leading private lender
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