80% LVR maximum for PPOR & IP combined?

[penny]

Hi All,

I'm looking into buying my first IP. My situation is:

loan amount on PPOR - $165,000
PPOR value - around $275,000 - $300,000 (depending on how the valuer feels)
Income - $140,000 p/a (i'm an IT contractor, currently on a 12mth contract)

I've spoken to a mortgage broker who has advised my existing lender (Credit Union Australia) will only consider lending me the money for an IP if my LVR for the 2 properties is less than 80% LVR.

Is this typical? Would other lenders allow me to borrow more, and if so, would i have to pay mortgagee insurance on both properties?

Hope this makes sense.

thanks
Penny

 

[Rolf Latham]

HIya Penny

thats typical, the 80 % max bit if you havent got 2 years tax rtns as a contractor.

But some lenders that do their own in house mortgage insurance assessment may look at it differently.

You can do the rounds of the 15 or so lenders, or seek the services of an independent broker.

ta
rolf

 

[Spectre]

[QUOTE=penny;328368

Is this typical? Would other lenders allow me to borrow more, and if so, would i have to pay mortgagee insurance on both properties?

Hope this makes sense.

thanks
Penny

Hi Penny
In response
Probably
Not necessarily - your call.. depends on what you are settling on at the end of the day property wise.

Re the income bit some banks dont get fussed about contracting, some do.
(Bearing in mind cua isnt a bank...)

 

[penny]

Thanks. So short answer is that it may be worth my while investigating other lenders?

cheers
Penny

 

[Rixter]

Thanks. So short answer is that it may be worth my while investigating other lenders?

Penny, as Rolf has already mentioned I too also feel the best way to go is to use the services of a investment savvy mortgage broker.

The will save you the time and frustration going from lender to lender yourself.

 

[penny]

Thanks, good advice. I will do that
cheers
Penny