Getting Started

[j_p]

Been hanging around here for awhile now learning as much as possible and itching to get IP#1 which has been on hold until we move into our PPOR that is currently been built.

Anyway, we have got sick of waiting so I thought I would check how much we can borrow - the ANZ loan calc just said ~$800k and that is while paying rent, full mortgage payments on the house we are building and $0 coming in from the IP.

So I'm off to the CBA on Thursday (our current bank) to see what they will do for us! Questions I have is how will they treat the house we are currently building? We don't have much deposit saved ATM, only enough for closing costs. Will they allow us to use the expected valuation on the property as security? If they do then Leverage across PPOR and IP will be around 80% on the kind of IP we have been looking at. Are there any problems that might come up with our situation?

So happy right now, thought we would be lucky to get $200k which was why we were waiting!

 

[sanjayag]

How much cash?

In many cases, especially with a good job, the borrowing power is not a problem. The problem is the upfront cash for chipping in your 5%, 10% or 20% for getting the loan and extra 6% of the cost for buying expenses.

 

[rugrat]

j_p - the deposit will be the issue, unless you have equity you can draw on. Get yourself a good mortgage broker (who has knowledge of financil structures for IP's) and talk to them.

 

[j_p]

Went in yesterday, just need to give in some paper work today to get the pre-approval.

CBA doesn't have a problem lending against the estimated value at completion of our PPOR so we are good for our deposit! Now we just need to find something to buy and start saving for the next deposit