Ready to buy my next IP (future PPOR), have crunched all the numbers and I am comfortable with a purchase price of $x (and all associated costs e.g. stamp duty, mortgage duty, conveyancing etc etc)
20% deposit is ready to go, but getting a bank to give me an 80% loan is obviously also a requirement and where my knowledge stops. I know it takes into account my income and the risk exposure with my current properties, but is it as simple as:
- "the bank will lend me $y"
or more complicated like:
- "given that exact property you want to buy, we've valued it at $v and we will lend you p% of $v"
?
The ROI is not as appealling if I have to pay >20% deposit so an 80% loan is the goal here, but apart from picking a bank semi-randomly and asking for conditional pre-approval (that's probably not worth the paper it's printed on), is there any way I can find out my budget first and not waste my time looking at properties worth up to $x?
20% deposit is ready to go, but getting a bank to give me an 80% loan is obviously also a requirement and where my knowledge stops. I know it takes into account my income and the risk exposure with my current properties, but is it as simple as:
- "the bank will lend me $y"
or more complicated like:
- "given that exact property you want to buy, we've valued it at $v and we will lend you p% of $v"
?
The ROI is not as appealling if I have to pay >20% deposit so an 80% loan is the goal here, but apart from picking a bank semi-randomly and asking for conditional pre-approval (that's probably not worth the paper it's printed on), is there any way I can find out my budget first and not waste my time looking at properties worth up to $x?