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Do you still have borrowing capacity?

Discussion in 'Property Finance' started by Gockie, 21st Jul, 2015.

?

Do you have borrowing capacity?

Poll closed 18th Aug, 2015.
  1. Oooodles. Time to buy, buy, buy

    13 vote(s)
    21.3%
  2. Yes, but it is less than I'd hoped, forcing me to rethink my purchasing

    24 vote(s)
    39.3%
  3. Only with non main stream lenders.... Bloody APRA

    7 vote(s)
    11.5%
  4. None at all right now. I'm stuffed myself into a corner. Bloody APRA

    5 vote(s)
    8.2%
  5. None at all.... and APRA's changes makes no difference to me.

    7 vote(s)
    11.5%
  6. Haven't checked

    9 vote(s)
    14.8%
Multiple votes are allowed.
  1. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Simple question. Do you still have borrowing capacity.... I've allowed polsters to select up to 3 choices in case you are unsure of which definite category you fall into.
     
  2. wombat777

    wombat777 Well-Known Member Premium Member

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    I haven't recently checked, however should have capacity. Have a deposit ready to go. Will apply for finance once I get a tenant in my first IP.

    Should be able to unlock some equity from my PPOR in about 12 months. Currently have a 50/50 split on my mortgage ( i.e. fixed loan on 50% ) that will limit ability to extract equity. Happy to wait.
     
  3. Bunlee

    Bunlee Active Member

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    Did not vote as there is not a category to fit my circumstances. My category would be:

    " Plenty of equity available (for a little fish) but not really too interested at the moment / market too hot / I am a bit slack "

    Sometimes I feel somewhat of a 'voyeur' here as I enjoy reading about everyone's experiences and knowledge but I am not actively into property. A bit here and there as well as a Sydney PPR and IP, a relative minnow.

    When I read some of the experience and drive here on the site I feel a bit slack that I don't send my equity to work but have to be a bit conservative being the sole income earner in our family.

    Changed my mind, voted 'haven't checked '

    regards
     
    WattleIdo likes this.
  4. D.T.

    D.T. Adelaide Property Manager Business Member

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    Of course
    Almost everyone does when structured correctly
     
    Last edited: 21st Jul, 2015
    Redom likes this.
  5. sanj

    sanj Well-Known Member

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    ive had capacity for a while but imo resi sites havent been enticing enough for a while, that's starting to change though

    admittedly i only look in WA atm.
     
  6. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    That's not actually true.
     
  7. D.T.

    D.T. Adelaide Property Manager Business Member

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    Amended :p
     
    tobe likes this.
  8. HUGH72

    HUGH72 Well-Known Member

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    Future servicability with the big 4 down by about 30% apparently? Still enough room to keep going presently but things have definitely changed.
    I bet many people will find they no longer meet the big 4 servicability criteria but won't find out until they next apply for credit or look extend an IO period etc.
     
  9. Coota9

    Coota9 Well-Known Member Premium Member

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    Yes I can buy even more if I buy in Adelaide :D
     
  10. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Perfect! :D
     
  11. Raydar

    Raydar Well-Known Member

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    Newcastle NSW
    Have been on one income for 1 yr now. Just had our PPR and IP valued, currently sitting at 65% LVR but unable to get finance via our broker. Missed out on a great 3x2x1 a few weeks ago.
     
  12. Beelzebub

    Beelzebub Well-Known Member

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    Just purchased, haven't settled yet. Will have to sit out and wait for some gains.
     
  13. euro73

    euro73 Well-Known Member Business Member

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    Gains ( in equity) wont assist borrowing capacity :)
     
  14. D.T.

    D.T. Adelaide Property Manager Business Member

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    Depends on the type of gains - if he's improved the property then chances it'd rent for more as well = serviceability
     
  15. sash

    sash Well-Known Member

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    Going thorugh financing with a bank outside the Big 4 with 88% lend + LMI capitalised...it looks like it might go through...LMI only 3k!

    Otherwise back to the drawing board and pay 20% deposits....
     
  16. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    I reckon even if you increase rent by $x per week by doing renos or whatever, the impact of changes required by APRA on deposit taking insitutions (who have started changing assessment requirements such as other financial institutions borrowings being assessed at over 7% etc) are probably still so large that the extra gain in rent per week does not come close to meeting the requirements lenders have now. Its like a drop in the bucket in terms of improving your servicability. Like throwing a glass of water into a swimming pool.... this won't be the case for everybody but I think the average person will have to be looking at properties with a high yield otherwise they will find themselves stuck in a no borrowing capacity corner....
    I've got equity, nothing would be at over 80% lends in my portfolio, I just highly doubt I can get any more loans now with the APRA changes. Once APRA loosens up, my LVR is sure to have come down heaps... and then watch this space. :)
     
  17. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Good luck Sash! Is it a really cheap property to only have a 3k LMI at 88% lend?
     
  18. Redom

    Redom Mortgage Broker Business Member

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    Deal with this everyday - am seeing more and more investors who can no longer go to the big4 or previously used lenders but can still borrow if they'd like.

    Can really stretch the borrowing wall pretty far (as DT said): see this, https://propertychat.com.au/communi...e-income-in-the-new-lending-environment.1315/

    Definitely more difficult and less flexible than in the past, but APRA changes shouldn't mean those that previously hadn't reach their OVERALL wall have now. It does mean that investors will have hit and past their wall with individual banks though.

    Cheers,
    Redom
     
  19. sash

    sash Well-Known Member

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    Yep...301k....for house in Brissie North...will post details once unconditional from finance perspective...

     
  20. sash

    sash Well-Known Member

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    Redom...this is likely to take the sails out of the market quickly....it is already happening....specufesters...are being hit. I can't see the slow down lasting....because I believe the imbeciles at APRA will realise that housing is the only thing keeping the economy going..then they will probably go to a post code restriction method...favouring places like Brissie, Perth and Adelaide...

    I see 2 interest rates cuts ...one in Augt/Sep and another around Dec. or early next year that should get things moving. They will need this to keep the economy on an even keel....