If your borrowing capacity was around $400K and you wanted to buy a $500K property which of the following options would be preferable?
1. Borrow the entire amount from one lender bring the LVR on the purchase property IP to 80%
or
2. Increase borrowings on an existing loan to 80% drawing out $100K and borrow another $300K from 2nd lender. 2nd lender would then have security over the purchased property with an LVR of 60%
In both cases money is available to cover 20% deposit and costs.
Just wondering if it is better to maximize borrowings on existing loans where possible.
1. Borrow the entire amount from one lender bring the LVR on the purchase property IP to 80%
or
2. Increase borrowings on an existing loan to 80% drawing out $100K and borrow another $300K from 2nd lender. 2nd lender would then have security over the purchased property with an LVR of 60%
In both cases money is available to cover 20% deposit and costs.
Just wondering if it is better to maximize borrowings on existing loans where possible.