Setting up a LOC facility

[oc1]

Wondering if the brokers can provide some details for the below situation of a client of mine:

Property $2,000,000 (2 resi properties - Melbourne metro)
Income $60,000 (rental from the 2 properties owned)
No dependents, married
Age 65
No mortgage/loans etc

Wanting to set up a LOC secured by both properties. Roughly speaking, what sort of limit can be arranged by one of the Big 4? Funds would be used for further property acquisitions (for development).

 

[Shahin_Afarin]

Why do you want the facility to be secured by both properties? Do you want a higher facility? Whats the limit you are wanting? Also why LOC and not a standard variable?

If you want the maximum LVR then the best lender is NAB/Homeside. However due to your age you will need to present an exist strategy.

You will not need this (exit strategy) with Westpac.

Bottom line - speak to a banker or broker as there are several options.

Regards

Shahin

 

[Terry_w]

You might have to do it in stages.

If you ask for one big LOC the lender will have trouble with:
1. what it could be used for, and
2. serviceability.

Start off on one property first I suggest.

 

[oc1]

You might have to do it in stages.

If you ask for one big LOC the lender will have trouble with:
1. what it could be used for, and
2. serviceability.

Start off on one property first I suggest.

Thanks Terry. The client (not me) wants to set up a sizeable amount to use as deposits for developments. LVR under 50%

 

[Terry_w]

Thanks Terry. The client (not me) wants to set up a sizeable amount to use as deposits for developments. LVR under 50%

"Development" is a word that strikes fear into the hearts of credit assessors...

 

[Aaron_C]

He should consult a broker for max borrowing capacity and finding the appropriate lender.