Question for the Brokers - How much can I borrow

[Rhinsor]

Hi all,

Just waiting for finance to be approved on a new IP but it is taking it's sweet *** time.

How much do you think one could borrow in the below situation & how quickly could a loan be approved?

PPOR Loan $367,0000, IO, 4.88% - Valued last month by Bankwest $530,000
IP Loan $288,000, IO, 4.88% - Valued last month by Bankwest $445,000
Credit Card $5,000 - Paid off monthly no fee's

Income Base 73K Gross - Overtime & Bonuses $87K Gross
IP 1 rent $450pw
Employment 6+ years same company
No dependants
Offset 25K

Looking at increasing both PPOR & IP LVR to 80% which gives $124K to play with.

Looking at borrowing $400K & purchasing property $490K. $124K will be used for 10% deposit, stamp duty, fee's and rest left for future. Property will be a IP and will rent at least $500pw.

Current Broker says serviceability is tight with multiple banks.

 

[Rhinsor]

Also If I keep the same situation but rent PPOR out for $400PW and rent/share somewhere for $165pw how much could I borrow.

 

[Peter_Tersteeg]

The servicing is starting to get tight, but there's probably scope for an additional purchase worth somewhere between $300k - $400k. That's on top of your proposed purchase of $490k.

You may reach a practical servicing limit with the next property purchase, it depends on your comfort level.

 

[Mick C]

Hi all,

Just waiting for finance to be approved on a new IP but it is taking it's sweet *** time.

How much do you think one could borrow in the below situation & how quickly could a loan be approved?

PPOR Loan $367,0000, IO, 4.88% - Valued last month by Bankwest $530,000
IP Loan $288,000, IO, 4.88% - Valued last month by Bankwest $445,000
Credit Card $5,000 - Paid off monthly no fee's

Income Base 73K Gross - Overtime & Bonuses $87K Gross
IP 1 rent $450pw
Employment 6+ years same company
No dependants
Offset 25K

Looking at increasing both PPOR & IP LVR to 80% which gives $124K to play with.

Looking at borrowing $400K & purchasing property $490K. $124K will be used for 10% deposit, stamp duty, fee's and rest left for future. Property will be a IP and will rent at least $500pw.

Current Broker says serviceability is tight with multiple banks.

Based on your new 80% loan on both your Bankwest loans - Ie
$424,000 for PPOr
$356,000 for IP 1

+ i presumed your single

your new borrowing capacity using the top 2-3 servicing lenders = $560,000- $610,000 even with LMI.

Average borrowing capacity would be $445,000- $487,000 ( Bw would be considered just below average lender)


Cheers

 

[Rhinsor]

The servicing is starting to get tight, but there's probably scope for an additional purchase worth somewhere between $300k - $400k. That's on top of your proposed purchase of $490k.

You may reach a practical servicing limit with the next property purchase, it depends on your comfort level.

Hi Peter,

Thanks for the quick reply.

My broker suggested I keep all three with bankwest and I can get all interest rates to 4.69% but they are now saying they don't think I can get that as my serviceability is low.
They suggested the only way I can get the new loan is to convert my PPOR to IP and rent somewhere else. This is with bankwest.

Can I purchase this new IP with another finance institute and keep the PPOR as is and not move current loans from bankwest?

 

[Rhinsor]

Based on your new 80% loan on both your Bankwest loans - Ie
$424,000 for PPOr
$356,000 for IP 1

+ i presumed your single

your new borrowing capacity using the top 2-3 servicing lenders = $560,000- $610,000 even with LMI.

Average borrowing capacity would be $445,000- $487,000 ( Bw would be considered just below average lender)


Cheers

Yep single.

What are the turn around for unconditional approval for these top 2-3 lenders?
So pulling the equity up to 80% out of Bankwest is fine if going to another financial institute?
Will these other banks need to value my current properties or just the new one?

 

[Peter_Tersteeg]

Hi Peter,

Thanks for the quick reply.

My broker suggested I keep all three with bankwest and I can get all interest rates to 4.69% but they are now saying they don't think I can get that as my serviceability is low.
They suggested the only way I can get the new loan is to convert my PPOR to IP and rent somewhere else. This is with bankwest.

Can I purchase this new IP with another finance institute and keep the PPOR as is and not move current loans from bankwest?

BankWest's servicing isn't even close to as good as several other lenders. There's certainly advantages in keeping multiple loans with a single lender, but it will likely restrict you in other ways. I don't disagree with what you've done so far but at some point it would be wise to diversify lenders.

Yep single.

What are the turn around for unconditional approval for these top 2-3 lenders?
So pulling the equity up to 80% out of Bankwest is fine if going to another financial institute?
Will these other banks need to value my current properties or just the new one?

Pulling out equity with one lender and financing through another is a common strategy. The second lender won't value the existing properties (if it's done properly). Turn around time varies between 2 days and 2 weeks depending on the lender and the deal.

 

[Rhinsor]

Thanks Peter,

Well finance came back ok today and the property valuation was done today. So I'll find out in a few days if the property valuation is good then I'll be ready for settlement.

 

[Rolf Latham]

Bankwest......... enough said

Fingers crossed for ya

ta
rolf