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financing additional IP

Discussion in 'Property Finance' started by igor1234, 26th Sep, 2016.

  1. igor1234

    igor1234 Member

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    Hey all,

    first post, after a lot of reading. you guys have a great community here! thank you and well done!

    Im looking to get another loan for an IP (75% LVR, property value ~ 350K) but the bank mentioned i am at my borrowing capacity. the overall situation as follows: i have two IPs, that are neutral/positively geared. both of them at ~ 70-75% LVR (P&I), but the value didnt increase much so not much equity there. my PPOR has a loan with only 55% LVR and i wanted to get the extra 25% equity to use for the additional IP but the bank cannot land because they claim i am max capacity. the IP loans are with a different bank.
    Are there any suggestions?

    cheers and thanks
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Hi Igor,

    Depending which lender you asked, it may be that there's still hope - some lenders are more generous than others.

    I'd suggest speaking with a broker to determine if you're actually at the end of the road - very often in my experience this is not the case.
     
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  3. Jerry O

    Jerry O Well-Known Member Premium Member

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    As per Jess' comments.

    Speak to a broker. There are still a number of ways to move forward. Given that you have only used two lenders at this point, there should be another option for you. This will be dependent on your current financial situation of course.
     
  4. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    What they said :)
     
  5. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    It's likely that whilst you may have reached your capacity with your current lender on the PPOR, with specific other lenders you may have sufficient capacity. Which lender is your current PPOR loan with?
     
  6. Simon Moore

    Simon Moore Mortgage Broker - Melbourne Business Member

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    Hi @igor1234

    There are some lenders that treat other financial institution debt very favourably. You're generally able to get an extra 20-30% totally borrowing capacity above that of a single lender by using multiple lenders.

    If you do talk to a broker, I would also suggest getting some advice around the P&I IP loans while still having PPOR debt
     
  7. igor1234

    igor1234 Member

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    Thanks a lot guys, will talk to a few brokers. cheers.
     
  8. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Maybe just try one to start with - there's no point having 5 people all doing the same work for you. :)
     
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  9. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Bingo - exactly what I was going to say.

    It's best you try form a good working relationship with one broker, otherwise you just spend the time of a number of brokers and potentially get them offside, for no real value to yourself.
     
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  10. dabbler

    dabbler Well-Known Member

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    Why not, he can auction you lot off between each other to get the best rate, I would ask for 2k cash as well for the priv :p
     
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  11. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    I think you'll find we're not that desperate for business ;)
     
    Last edited: 28th Sep, 2016
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  12. dabbler

    dabbler Well-Known Member

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    At least it was not... "does anyone know a broker" :) :p:eek:
     
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  13. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    ignore button :)

    I know u are only kidding, but I will bring out the elephant,

    There are people that believe that having 5 or more credit advisors do 2 to 10 hours work on their outcomes and then trying to pick the best is the way to go.

    Most have no idea what will separate good from bad to indifferent, thus suffering "confused knowledge" and will often fall prey to the best "sales person".

    I'm all for comparative ideas, take my stuff to an accountant planner or soli, and nother broker or banker, but dont be surprised that if I get wind that the work is being shopped around multiple bankers brokers, I lose interest real fast.

    Arrogant perhaps, I have just found this shopping approach doesnt get the best outcome for the client.

    ta
    rolf
     
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  14. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    The best way to stop this sort of thing is to charge a small upfront fee.
     
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  15. larrylarry

    larrylarry Well-Known Member

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    I think once you've in business long enough, you know what a shopper is like.
     
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  16. Weaver

    Weaver Active Member

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    and then there's the benefit of this forum where a very generous 'brains trust' solve problems I didn't even think existed! :)
     
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  17. Jerry O

    Jerry O Well-Known Member Premium Member

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    You bet they do! :cool:
     
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