financing additional IP

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

 

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.

 

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.

 

What they said

 

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?

 

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

 

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

 

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

 

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.

 

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

 

I think you'll find we're not that desperate for business

 

At least it was not... "does anyone know a broker"

 

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

 

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

 

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

 

You bet they do!