From: Gail H
Hi everyone,
Okay, I've applied to have my home refinanced so I can draw down deposits. But now I will have a $240,000 loan against a property worth $300,000 instead of the original $160,000 loan. Well, as soon as I tell a lender I "owe" $240,000 on the house (since you have to put down the whole line of credit, even if its not all drawn down), I'm told that I can't "afford" to borrow more. What is the way around this problem that the whole line of credit must be put down as a liability, and not just the drawn down portion. I intend to by properties that are all positively or neutrally geared, but it doesn't seem to make any difference.
Gail
Hi everyone,
Okay, I've applied to have my home refinanced so I can draw down deposits. But now I will have a $240,000 loan against a property worth $300,000 instead of the original $160,000 loan. Well, as soon as I tell a lender I "owe" $240,000 on the house (since you have to put down the whole line of credit, even if its not all drawn down), I'm told that I can't "afford" to borrow more. What is the way around this problem that the whole line of credit must be put down as a liability, and not just the drawn down portion. I intend to by properties that are all positively or neutrally geared, but it doesn't seem to make any difference.
Gail
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