First time pulling out equity

Discussion in 'Loans & Mortgage Brokers' started by Vick B, 11th May, 2020.

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  1. Vick B

    Vick B Active Member

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    Victoria
    Hey guys

    Bought an IP in Sept 19 for 350k.
    Currently owe 275k (P&I 3.19% Variable)
    4 bed 2 living 2 bath

    Properties in the same street that are 3 bed or 4 bed 1 living etc are being sold and listed for around 400k.

    If I was to order a valuation to pull out equity for another IP deposit should I order it with my current bank? Should I wait til I've owned the property for 12 months? What would be the maximum amount I could pull out if the property comes back around that 390-400k mark? Is 90% LVR still possible?

    Checked with MB and we have enough borrowing capacity to purchase another property if we can get a deposit together.

    Thanks in advance
     
    Vick B, 11th May, 2020
    #1
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    If it came back at $400, you could access about $45k, or, if your current bank allows it, up to 90%. It’s going to depend a lot on your current bank, and also what you’re going to do with the funds.

    I’d get an investment savvy broker to do it for you, even with your current lender, just to make sure it’s all structured correctly. If you’re buying a new property, the bank is almost guaranteed to get it wrong.
     
    Jess Peletier, 11th May, 2020
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You can't order the valuation either. The lender that you are borrowing with will need to order it. or the broker on their behalf. You might be able to try a few different lender valuations and then go with the highest to be able to borrow more.
     
    Terry_w, 11th May, 2020
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  4. Lindsay_W

    Lindsay_W Well-Known Member

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    No need to use your current bank, no need to wait 12 months, yes you could possibly go to 90% (LMI inclusive) on the cash out.
    Any decent broker could do this for you, it's an easy one
     
    Lindsay_W, 11th May, 2020
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  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    most lenders will NOT do upfront vals for the branch staff...............

    ta
    rolf
     
    Rolf Latham, 11th May, 2020
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  6. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Go directly to a banker and they will most likely do your loan wrong And try to cross collaterise your next property purchase.
     
    Tony Xia, 11th May, 2020
    #6
  7. Illusivedreams

    Illusivedreams Well-Known Member

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    Note if you have a competent bank the lending specialists are good.
    Im with commonwealth bank and have a great lending specialist.

    The advice is always on point. Further to that the never cross loans and if you ask for the structure can let you know in advance.

    The notion that you must use a broker is simply false.
    Sorry i love my brokers and do you sue them as well but the wording from certain brokers is simply fear mongrel ling.
     
    Illusivedreams, 13th May, 2020
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  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Freudian slip :) perhaps

    Bankers are fine if the policy AND the vals fit

    often they do not

    Nil to do with competency , all data

    Recent example is is 950 from incumbent lender to 1350 for new lender.............

    There is a core reason why most banks direct wont do upfront vals for the own staff, but are forced to for brokers

    ta
    rolf
     
    Rolf Latham, 13th May, 2020
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