Advice on How to Get Loan for IP

Discussion in 'Loans & Mortgage Brokers' started by kurtt, 26th Jan, 2022.

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  1. kurtt

    kurtt Member

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    Hi,

    Just wondering if someone here can give advice on how to get a loan for an IP unit/apartment in Queensland for $470k. Able to spend $100k or happy to use equity from exsisting IP for deposit and expenses. We’re from Sydney, family of 4 with 2 young kids on a single income. I’m a health care worker with income $125k/yr. Checked with ANZ, unable to get a serviceable loan, checked with M-broker can only loan $120k.

    Other facts
    • Has an exsisting 1 IP valued at $700k with loan balance $370k. Rent-$515/week. Body corporate $1,800/quarter (ANZ and M-broker noted it is too expensive)
    • We are currently renting for $570/week
    • Credit cards has $15.5k limit (never maxed out only used $200-500/per cycle). Few other credit cards with $7k limit in total (never maxed out and always paid in full)
    Our lifestyle is not magnificent but we can buy the things we need and a bit more without putting stress in our finances. I do pick up extra shifts regularly or when expenses gets bigger. Managed to save few thousands annually.
     
    kurtt, 26th Jan, 2022
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    dumping most of your credit card limits will help, but still wont get you across the line with an APRA based tier or 2 lender.

    You may get across the line with a non bank and some fiddling with the existing lending to pull some equity so we can do an 80 % lend on the new place , BUT that 138 a week body corp is a killer.................

    ta
    rolf
     
    Rolf Latham, 26th Jan, 2022
    #2
  3. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Have you asked your broker if you reduced your credit cards significantly or even closed them, what your borrowing power will be ?

    Very hard to grasp on could potentially be done without knowing your full financials
     
    Tony Xia, 26th Jan, 2022
    #3
  4. apaul

    apaul Well-Known Member

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    You could refinance existing IP and get out possibly $190 (80% LVR for existing IP). Plus you have 100K. There are tips to apply for loan after that, but wont be ethical. plus chances of getting caught is also high and loan application will be declined, if caught.
     
    apaul, 26th Jan, 2022
    #4
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  5. The Y-man

    The Y-man Moderator Staff Member

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    Why put yourself under the stress with more expensive body corp?

    How long have you had IP1 for?
    What sort of unit is it? (Walkup, highrise etc)
    Is it possible to sell for a profit?
    Maybe use the proceeds to "swap" for a house somewhere?

    The Y-man
     
    The Y-man, 26th Jan, 2022
    #5
  6. kurtt

    kurtt Member

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    ANZ Checked in their system with credit card limit down to $6,000, still nothing. They tried to remove 2kids from the pre-approval, we can loan $50k. We’re so baffled how we are surviving or if we miss something when we filled out the pre-approval

    We are now realising the body corp is high. Although it has facilities like pool, gym and cinema.
     
    kurtt, 26th Jan, 2022
    #6
  7. The Y-man

    The Y-man Moderator Staff Member

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    OMG - I would seriously look at offloading before your pool leaks, the heating system dies, the the cinema gear failing, along with the gym gear that needs replacing every week after some bozo breaks something... and let me guess - you have a lift right?

    The Y-man
     
    The Y-man, 26th Jan, 2022
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  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Were u gonna sell the kids :)

    ta
    rolf
     
    Rolf Latham, 26th Jan, 2022
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  9. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    If your other broker even tried 3rd tier lenders then I'm afraid it's a no go.

    Has he tried reverting your current loan to IO and then trying for a pre approval with pepper ?
     
    Tony Xia, 26th Jan, 2022
    #9
  10. kurtt

    kurtt Member

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    Problem is lenders sees that we are not getting enough income to refinance exisiting IP and service the new IP
     
    kurtt, 26th Jan, 2022
    #10
  11. kurtt

    kurtt Member

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    Property was PPOR since 2015, turned to IP for 1.5yrs ako. Its walkup. If we sell that property, we could potentially get $350-400k profit. Its 11km from Sydney CBD, been looking to swap it for a house but can find anything that suits us
     
    kurtt, 26th Jan, 2022
    #11
  12. kurtt

    kurtt Member

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    No, they did not try. They its not servicable from anu of their lenders. I presume thats including 3rd tier. I tried doing IO it will be small difference from P&i. Thanks for your suggestion
     
    kurtt, 26th Jan, 2022
    #12