What do you do when you're loan max'ed?

D

Delilah

Partner and I have a PPOR and 2 investment properties. We are at 45% ownership. We want to re-invest in more property but our bank (and every other) will not loan us more money. The major factor is we pay child support and this halves our borrowing capacity. We have the cash flow to support more property and we feel well buffeted with our LVR.

I've never seen a mortgage broker before. Will they be able to sus out a lender for us? Or does this mean we have to wait?
 
Hi

A broker may be able to ID an apportunity for you, especially if u can control your cashflow and u know that u have spare cash.

ta
rolf
 
I agree at 45% lvr you would seem to have sufficient equity however under NCCP affordability is very important.

In saying this every lender calculates its servicing differently and you might find what doesnt fit for one lender does for another.
 
hubby had that situation over 10 years ago - when he went for a loan and told them he had 3 kids and was separated, they wouldn't approve him.

went to next bank and just said he had wife and 3 kids but wife didn't want to go on loan docs - got loan straight away.

sooooo - does that mean paying child support costs more than having the full time?
 
Seems so Lizzie. Our bank manager tried to add his daughter as a dependent, on the loan application rather than as child support because we can borrow 300k + that way. As C/S we can only borrow <100K. At this point in time they wouldn't allow it, even when we have great history with them.

Cause C/S is on pay slips etc, we have to tell the banks (the truth).

So it looks like we keep looking and perhaps try a broker.

Thanks everyone.
 
1 , create more income, add the neg gearing, and depreciation scheduals, or simply work harder.

2, add to the properties , as a builder if the LVR are tight i add a room:D and a coat of paint.

3, sell one show the profit aIE flip it. then bargain harder with the knowladge you have learned so far on your jeorney. somtimes selling one or two seems like a step back but it could also be a leap forward,
thats my two cents worth.
 
Thanks craigb.

I guess you mean work harder as in more hours? The banks I've seen wont look at overtime, we tried :)

But completely agree, I'm at SAHM so if I worked that would boost our income aspect. At this moment in time, I can't with such a little one.

Yes thinking of selling one, as it's in my name and I no longer get the tax. So seriously considering this.
 
not always harder somtimes smarter, i remember a loan deal that was on a knife edge, it was because of a 30k credit card , dispite the fact it was empty they valued it as it was full, so very quickly they paid the deposit on the credit card making it full and they crossed the line with 20 available.
just so many out of the box stuff that happens and can only be solved with many years of experience.

also look at value adding to the current properties a deck and pergola on each might give you the edge.
 
sometimes when banks knock back loans, its also time to think about whether there is a reason not to borrow right now.
Maybe you should take some time to consolidate, or to look at other options like shares where you don't need to borrow quite so much money.
Pen
 
Rolf Latham said:
Well maybe coz its the right thing to do to :)

How much a week are you saving at the moment ?

ta
rolf
Click to expand...

Yeah of course it's the right thing to do :) Any extra 'savings' are going straight into an offset account. Why do you ask? Do you think perhaps we use this 'down' time to save more?

Yeah I know what you mean pennyk but I feel like the banks NO to us is fine for them - I get that we don't meet their borrowing criteria but our cashflow and LVR is good and that's what is frustrating as I feel like we are being held back when we don't need to be.

I will sit down with partner and look closely at everyones suggestions. I hadn't thought to add value perhaps as craigb suggested.
 
Delilah said:
I've never seen a mortgage broker before.
Click to expand...

It's been hinted at 3 times already and obviously isn't getting thru....so I'm happy to be the brick bat of subtlety.

Delilah - pick up the phone and call Rolf.

Stop phaffing about - send yours and Samson's paperwork to him and he'll get you what you want.
 
I'm new, who the hell is Rolf :) obviously as above but I guess he/she is trusted here :) Samson? Sorry I'm slow on the uptake. Thanks for your help.
 
Rolf Latham is one of the brokers here.

As per his contributions, he appears to know about this borrowing to invst stuff and how to do it based on circumstances...

So a broker like him should be able to help you..

AS you don't know any yourself etc, and Rolf contirbuted the most to this thread, having a further conversation with him was suggeted.

Samson was a reference to your other half, as in "Samson and Delilah" as wobblycarly said
 
Cool thanks. Look like I will learn a lot more than investing here :)

No I'm not a hairdresser but I'll blame it on pregnancy brain :D
 
hi Delilah
first there is no hurry to get into property
what you want to do is get into the right property big difference
next talk to rolf talk to about 20 brokers on this board but work out what you want to buy and using the info they give you work out what you can pay.
then look at bonds and securities like this that you can use to add to income so that you can add leverage.
one thing I would say is take all advice just don't act on all advice this is a free to air board and I don't give advice.
chinese say the longest journey is started with the first few steps
so just make those steps slow
oh and not sure who rolf is either
 
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