Do I have any options available?

Discussion in 'Loans & Mortgage Brokers' started by pwnitat0r, 3rd Oct, 2021.

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  1. pwnitat0r

    pwnitat0r Well-Known Member

    Joined:
    27th Nov, 2016
    Posts:
    323
    Location:
    Sydney
    Hello,

    I have a property worth $220-270k (not sure if it’s at the lower end or higher end of the range) with $171k owing. Variable interest rate. Getting $315/week rent which covers nearly all costs, including P&I loan.

    I have another property worth $800k+ with $593k owing. Fixed interest rate at 1.99% in November 2020 for 4 years, so about 3 years remaining and I believe fixed interest rates are higher than what I fixed at.. so perhaps break costs would be minimal if it helps me to refinance? Getting $440/week rent which covers all interest and a portion of the principal component. Currently chipping in about $150/week towards the principal component of the loan.

    I would like to be able to borrow $350-450k for another property without using any of my money for a deposit. Do I have any options for this to be done?

    I’m okay to cover stamp duty and legal fees out of pocket with cash, but not much more.

    Now is about the time I need a good broker I guess. Any advice or help greatly appreciated.
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,599
    Location:
    Gold Coast (Australia Wide)
    Subject to vals and serviceability you may be able to access 72 k without LMI using your middle range of the smaller property val, IF the existing lender(s) will release the equity to you.

    No need usually to break fixed rates.

    that 72 k looks to be plenty for an 88 % plus LMI lend to buy a 450 k place


    ta
    rolf
     
    Lindsay_W likes this.
  3. Daniel Domingues

    Daniel Domingues Member

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    12th Sep, 2021
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    Location:
    Sydney
    Has any of the properties increased in value? so that yo you can refinance and unlock equity to use as a deposit?

    You need a good broker, but you don't need to pay any break costs on the fixed loan if you stay with the same lender and keep the existing debt as a fixed component then do a loan split on the refinanced part only.
     
  4. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

    Joined:
    23rd Aug, 2015
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    Location:
    Bella Vista
    Depending on valuation and also servicability you maybe able to get the 20% deposit + stamp duty for your investment.

    If your loans fixed you can just draw another another split out for it, however if the valuation falls short then you may need to consider refinancing.
     
  5. pwnitat0r

    pwnitat0r Well-Known Member

    Joined:
    27th Nov, 2016
    Posts:
    323
    Location:
    Sydney

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