Borrowing capacity

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From: Shane Barry


I am new to property investmnt. I have equity of approx $220000 ($200000 home + $20000 holiday home). I have a mortgage of $100000. Family net inc = $1600pf net ($40000pa). Enquiries with lenders (phone) give borrowing capacity at under $150000 (even including rental income of $150pw). Credit rating spotless. What can I do to convince them to provide me with funds needed to get stuck into the market? I would be grateful for any info!!

 

[Iggy_Type_R]

Reply: 1
From: Iggy V


Mortgage Broker!!!

When I went to the bank I already had a mortgage with for a 2nd property they said 125k and that's it. Would not budge. I got 150k from another bank. With a mortgage broker I got 275k!!!! Double basically.

Where are you located?

Iggy

 

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Reply: 1.1
From: Shane Barry


Hampton Park

 

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Reply: 1.1.1
From: Russell Chellew


Hi Shane ,

Borrowing power can vary significantly between lenders. Assuming you have no other liabilties /children etc, your borrowing power would be above $250K for most lenders.

ANZ Bank & BOM are 2 major lenders that spring to mind who tend to have highest borrowing power .

I recommend that you talk to an independent Mortgage broker.


cheers

Russell
[email protected]
mob:0411888024

 

[Rolf Latham]

Reply: 2
From: Rolf Latham


Hi Shane

Its all about structure, and smoke and mirrors to some extent.

As Iggi and Russ suggest go, get more than just a quarter of the story and speak with a good independent mortgage broker. This is likely to open your view a bit.

In addition to the standard type of lending you are used to, lo doc or no doc lending will usually provide whatever you want as long as you have 20 to 25 % deposit



ta


Rolf


Rolf

 

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Reply: 3
From: Shane Barry


Many thanks to the above suggestions!!!!