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How much difference does 10k make

Discussion in 'Property Finance' started by Ian87, 11th Jan, 2017.

  1. Ian87

    Ian87 Member

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    Location:
    Melbourne
    Hi guys hopefully some of you on here can give me advice on this one.

    Currently have 1 ip in Frankston South mortgage of 336k on it and conservative value of around 460 (I think a little more but best to be conservative)

    Looking to obtain finance for a 2nd property hoping to use a parental guarantee to loan 106% of funds. Have been offered 505k from nab @4.74 with p&i repayments.

    I am self employed last years taxable income was 52k this financial year should hit 62k, partners was 67k and should be same or slightly higher next year.

    Ideally I want to get more funds than 505k but worried about changes in lender policy etc so not sure if I should take it while I can? So to cut to the question, if I wait until the end of this financial year and earn that extra 10k roughly how much more will the bank be willing to loan us? Currently got 10k savings and should have around 40k by end of financial year.

    Hope someone can offer advice.

    Thanks.
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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  3. Ian87

    Ian87 Member

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    Location:
    Melbourne

    Mid Dec last year.....I was worried you would say that. Seems very tough out there right now.
     
  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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  5. Ian87

    Ian87 Member

    Joined:
    23rd Sep, 2016
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    Location:
    Melbourne
    Thanks.

    As an aside we are currently saving around 4K per month so we could afford repayments even if it was untennanted. But don't think they take that into consideration.
     
  6. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
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    3,807
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    Perth WA
  7. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Location:
    Adelaide, SA
    NAB changed their policies drastically at the end of November last year, so it comes down to the exact time you spoke with them and whether they actually calculated the capacity correctly based on the new policy - dealing with a lot of NAB people at the time was a joke as they were struggling to keep up with the policy changes and timelines. (we had assessors declining loans, then we would need to call them up and remind them of their own policy and suddenly have the loans approved - happened three different times).

    In the end if NAB cannot provide you with the funds, there are alterantive options out there at the same level or greater than NAB for these kinds of deals, so I'd be double checking your borrowing capability if I were you and then proceeding on that basis.

    Waiting on the sidelines now can mean that what's possible today may not be possible at all tomorrow. I advised someone of exactly this in July last year, whose accountant advised them to wait until January as they 'thought it would be a better idea'. I've now had to advise them what we spoke about is no longer possible for their situation - quality advice from the accountant.