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Can this person get a IO Loan please?

Discussion in 'Property Finance' started by Darlinghurst Boy, 10th Aug, 2015.

  1. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    if there are any Brokers who can advise if this guy can get a IO L oan and how ?

    1/Apartment 100% owned , worth over 400k but lets call it 400k---

    2/House 100% owned lets call it $300k--- rents out for $325 week

    3/Cash savings $80,000

    Want to buy investment apartment 500k

    .* He doesnt have enough cash for 20%
    How does he get a loan and what is the process?
     
  2. pinkboy

    pinkboy Well-Known Member Premium Member

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    What's Mushie's income for serviceability like?

    pinkboy
     
  3. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Will they look at income , payslips ?
    His income is around 60k per year.
     
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    If they can service the debt and have equity in their existing properties- they might be able to release equity and use it to cover the deposit/costs on the next purchase.

    However - can't rely provide a decent response based on the limited info.
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    You left out the most important part - income.

    Yes he can probably get a loan, assuming he has employment.

    He could borrw more than 100% of the purchase price of the property too.
     
  6. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Yes full time employment , about 60k a year .
    Will this be a lot of trouble going through ?
    What will the process be??

    Valuation of both properties ???
    Should he ring a broker ? What is the first thing he needs , who arranges the valuations of the 2 properties?
     
  7. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Probably a desktop val of the property used for the deposit, and maybe a full val on the new IP depending on lender.
     
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Easy to get through probably.
    broker or lender arranged valuations.
     
  9. Richard Taylor

    Richard Taylor Mortgage Broker & Brisbane Buyers Agent

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    Assuming no other debts or liabilities and making an assumption on the new anticipated rental income certainly appears doable.

    Choice of lender will depend on the product features he requires but a simple basic rate loan might be the way to go.