How long do I need to wait to get another loan?

I bought my first property a year ago and I am interested in purchasing another soon, how long do I need to wait before trying to get another loan, my first one was through NAB. Is there any way to use equity yet or do I need to use my savings for a deposit, I put 20% down the first loan. The property I want to buy next is much less than first one, as it’s land in the country that I want to use as a weekender for the family.

 

Depends on your borrowing capacity and deposit - you can use equity for that if you have enough, and if you have enough borrowing capacity you can move forward. Always two sides to the coin - one side is deposit / seed costs. The other side is borrowing capacity

 

as soon as you are ready Sara.

usually if you have available funds to use, you could start straightaway.

or starting releasing equity from existing property to use as deposit ( which could take a few weeks), then borrow again to purchase.

or if your family members are happy to be guarantors, you could, again, start straightaway.

there is no time restrains, as long as you are ready.

 

And given it will be a non income generating purchase combined with a "country" location you may find the lenders will want a massive deposit or equity so will have tougher lending criteria based on your income capacity.

 

Thank you! I know I have the borrowing power as the broker told me I could borrow more at that time, also my husband and I will both have pay rises 1 July, we have the first place rented tenanted. I better call the broker again, I just thought the bank might have a time frame with rules about using the equity release.

 

Generally no . See the response above from @Eric Wu

 

Umm, as soon as you can pay for it, you can have multiple loan applications in at same time, but make sure each lender knows, it is prob better to do one and as soon as it is done, do next one if different lender.

 

If your name is Salim....you can do whatever you want......until you can't anymore

When you have a few loans and your buying and re financing etc, you often have no choice, I have done many things I was told not too, or was bad practice, and not ever once have I had a loan declined, def no reason to wait, well not in the past, there was never anything positive in your file.....

 

I think Dabbler is referring to having multiple applications in at the same time for refi, equity release, purchase combos which is certainly fine but should be addressed upfront and proactively when submitting each of the applications.

We used to have a lot of these in the early Sydney/Mel boom stuff where clients would purchase multiple properties at the same time.

That said you need to be careful of numerous credit enquiries and make sure you are choosing the right lenders so you are not left with 12 credit enquiries and one property purchase in the space of 1 month.

 

Yep, just let everyone know the what and why.

Def no need to wait a year between purchases if you have everything in order and found a suitable place......

 

Another thing I was saying is that you never used to get a "good" credit rating, i.e by waiting a year thinking everyone will know you paid your 1 year old loan on time.....but that may change, so there may be merit in waiting in the future....or taking a small loan and paying it to create a record ?

 

Just want to clarify-multiple applications with multiple banks? And when you say address upfront to? (each bank or finance providers?)

 

To throw a spanner in the works, have you considered consulting your accountant about the effects of having a mixed purpose loan? Partially for the IP and part for your non-deductible weekender/landbanking?

Are there better ways to arrange your affairs?

 

I have had no problems doing these things......

I am not advocating doing any of this over the counter at the majors......