Hi
After having a pre-approval in place for some time we decided to sign a purchase contract on our first IP with friends (highest earner in each couple are parties to contract). Well, turns out that although our required 50% share is much less than our pre-approval no lender seems to want to loan us the money. The other party to the contract have a line of credit so are effectively paying cash however we want to mortgage our portion leaving equity in our PPOR for other investing when we are ready. Our friend has agreed to sign a third party mortgage guarantor but even this does not seem to be enough for the banks. We would be right at our limit of 80% LVR if we mortgaged against our PPOR and if we cannot get security over our IP then wont this limit future investing activity anyway?
I hope this makes sense....
Any ideas?
After having a pre-approval in place for some time we decided to sign a purchase contract on our first IP with friends (highest earner in each couple are parties to contract). Well, turns out that although our required 50% share is much less than our pre-approval no lender seems to want to loan us the money. The other party to the contract have a line of credit so are effectively paying cash however we want to mortgage our portion leaving equity in our PPOR for other investing when we are ready. Our friend has agreed to sign a third party mortgage guarantor but even this does not seem to be enough for the banks. We would be right at our limit of 80% LVR if we mortgaged against our PPOR and if we cannot get security over our IP then wont this limit future investing activity anyway?
I hope this makes sense....
Any ideas?