Tactics to increase borrowing capacity

[silverx]

how about vendor finance? that would get rid of the banks all together

 

[RumpledElf]

Nah they're still around. Like Peter said it's harder - but it's not gone by any means.

Great, and noone told us about those when I was talking to every broker on the planet this year, none of whom could dredge up a stated income lodoc that didn't require a few years of paperwork to back it up.

 

[Aaron_C]

It's ok as long as you are genuinely self-employed. Some lenders require 12-months of BAS but other lenders don't. Each lender is different

 

[Peter_Tersteeg]

Great, and noone told us about those when I was talking to every broker on the planet this year, none of whom could dredge up a stated income lodoc that didn't require a few years of paperwork to back it up.

A simple stated income lo doc with no other paperwork to back it up doesn't exist any more. The NCCP requires reasonable evidence of your income (and stated income alone doesn't qualify).

You didn't ring every broker on the planet either...

 

[josko]

Nah they're still around. Like Peter said it's harder - but it's not gone by any means.

And...depending on how much interest you want to pay....LMI....the deal would want to be worth it.

On the subject of vals.

Private valuations are fine as long as you know that the Valuer you use is on that particular banks panel and as long as you check that the valuation can be reassigned to that bank.

Regards JO

 

[ssimpson2003]

And...depending on how much interest you want to pay....LMI....the deal would want to be worth it.

On the subject of vals.

Private valuations are fine as long as you know that the Valuer you use is on that particular banks panel and as long as you check that the valuation can be reassigned to that bank.

Regards JO

Thanks Josko. Do you know what sort of situations could see the bank decline a private valuation from one of their own panel of valuers?

cheers

 

[ssimpson2003]

Income is actually *the* most important part. For your average joe they hit the servicability wall on income, especially if they negatively gear. Equity tends to be most important for your first couple of purchases, or if you fail some criteria of LMI but not the bank's criteria and need a higher deposit and valuations matter..

Sorry i should have specified, I completely understand that servicability is the most important criteria in determining borrowing capacity. In my case it's not an issue right now, which is why my original question and the original purpose of this thread was purely focused on the LVR side of the equation (and possibly structures) not servicability.

cheers