Lender Exposure

[Sonamic]

Hi all. What do most on here consider to be approaching a high level of exposure to one Lender? Is it the number of properties? Or moreso a Debt Level?

 

[Rixter]

Debt level and number of props.... you want to leave yourself room to easily extract titles.

 

[Rolf Latham]

total debt

debt with that one lender

LVR


For eg

< 1 mill with one lender if Lvr > 90 %

1.5 ish with one lender if lvr < 80

5 mill if your portfolio value is 100 mill

ta
rolf

 

[Sonamic]

Thanks gents. I'm at 1.27 mill. 2@ 80% and a new one @ 90%. I might be at the limit with this Lender for now. Best let them age a bit and move the remainder around.

 

[Jamie M]

There's no specific rule.

Generally I aim to restrict to around $1m with anyone lender - or a few properties.

If the LVR is low and servicing is good - then it's usually ok to go beyond the $1m mark.

Cheers

Jamie