Securing investment loan

Hi Tom,

I thought with a positive geared property and my numbers stacking up ok 330 shouldnt have been a problem?

I totally agree !! I think you might be about to find that a Mortgage Broker can come up with a WAY better result for you than most individual banks can. Of course, right now, we are firing blind as there isn’t any info re your income apart from rent. I am guessing that you have a reasonable income to be able to put aside $60k in cash.

Anyway, I have a lot of faith in the abilities of MB’s – so watch out for replies from one of them – there are a host on here, just check the signatures of any others who post a reply to you. They are Masters in choosing just “which bank” is the best to use first for an investor, and also the ones to use last – all because some lenders have differing lending rules than others.

Certainly, from the post you made, I would be very surprised if there wasn’t a positive result possible from somewhere. The Equity is a big plus – let’s see what the MB’s can offer re getting your DSR higher. A tete-a-tete with one of them could prove to be a goldmine for you.

Benny

Just because your bank said you can only borrow $180,000 – doesn’t mean that all lenders will say the same. Any investor wanting to build a significant investment portfolio will need to have a strategic lending structure to ensure they maximise their capacity and factor in long term finance challenges which arise for investors. I’ve written about this previously here: http://www.precisionfunding.com.au/diversified-lending-structure/

Effectively if your lending is structured correctly it’s possible to generally increase your long term borrowing capacity by 1.9-2.5x greater than what any one lender would allow.

As mentioned by my colleagues above. There are a lot of things to consider on the finance side alone in buying an investment property.

On a very basic explanation, lenders take in all your income (PAYG incomes, rental incomes, other acceptable income etc) less all your debts (mortgage, personal loan, car loan, credit card limits, hecs etc) to determine your take home income. From there, they will determine how much you can afford. Lenders then assess the take home income uniquely, some are more generous than others but most add in so much buffers to lessen their risk (adding in sensitized rates, assessing it at principal and interest repayment at 25 or 20 years etc)
Again that is just a very basic explanation of it, different lenders assess each deal differently. So best to speak to one of the brokers above and run through your situation with them.

Regards,
Jerry