How to get more investment loan?

Discussion in 'Loans & Mortgage Brokers' started by google boy, 17th Jul, 2017.

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  1. google boy

    google boy Well-Known Member

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    Help me guys, I have got 3 properties in melbourne and got plenty equity. I want to borrow more money but bank is making tough due to recent changes in lending criteria. They say my income cannot service another loan. Is there any idea or strategies ?
     
    google boy, 17th Jul, 2017
    #1
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Talk to a different bank.

    There's still some smaller lenders with reasonably generous borrowing capacity calculators for investors.

    Be prepared to pay a higher rate/application fee though.

    Cheers

    Jamie
     
    Jamie Moore, 17th Jul, 2017
    #2
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  3. google boy

    google boy Well-Known Member

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    i have spoken 4 big banks
     
    google boy, 17th Jul, 2017
    #3
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    That's half the problem ;)

    Almost all banks have been normalised . Westpac is still a chunk better but not for much longer

    The are smaller non bank lenders that still have slightly to much better serviceability

    Ta
    Rolf
     
    Rolf Latham, 17th Jul, 2017
    #4
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  5. google boy

    google boy Well-Known Member

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    what do i need to do?
     
    google boy, 17th Jul, 2017
    #5
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    Call ghost busters?

    Nah, contact a broker who can deal with multiple financiers not just one bank at a time.
     
    Scott No Mates, 17th Jul, 2017
    #6
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  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    You dont NEED to do anything :)

    You can choose to use a broker, that may have access to one or more lenders like that, or have a go on your own with the higher servicing lenders.

    BTW, if your loans are PI, there wont be too much hope

    ta

    rolf
     
    Rolf Latham, 17th Jul, 2017
    #7
  8. google boy

    google boy Well-Known Member

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    i have spoken to mortgage broker they say u have already got 3 properties and ur income not sufficient. I have plenty equity more then of 500k
     
    google boy, 17th Jul, 2017
    #8
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  9. google boy

    google boy Well-Known Member

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    inetrest only
     
    google boy, 17th Jul, 2017
    #9
  10. Guest

    Guest Guest

    Have you considered whether or not you can (safely) service another loan?
     
    Guest, 17th Jul, 2017
    #10
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  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    I know from my experience we dont have access to every lender, I guess its the same with orher brokers

    A second look ( note NOT applications) might prove there is some serviceability there.

    Whats your personal affordability budget like ?

    ta

    rolf
     
    Rolf Latham, 17th Jul, 2017
    #11
  12. Terry_w

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

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    I have made a list of everything I can think of to improve borrowing capacity and I have 315 things on that list. Not all will apply to every situation but some things that MIGHT help you include
    - apply for the new loan as PI
    - change existing loans to PI
    - increase rents
    - get rid of credit cards, personal loans
    - recycle that non-deductible debt away
    - choose an appropriate lender.
    - sell a dud property
    etc etc
     
    Terry_w, 17th Jul, 2017
    #12
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  13. Scott No Mates

    Scott No Mates Well-Known Member

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    • Sell a kidney
    • Participate in a well paid drug trial (hope for the placebo)
     
    Scott No Mates, 17th Jul, 2017
    #13
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  14. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    Don't exceed your capacity with mainstream lenders?

    It is pretty clear all lenders will soon be required to assess all loans at 7.5% P&I so if it doesn't service at that level then you run the very real risk of being stuck with 2nd / 3rd tier lender who can hold you to ransom so to speak. AND when your IO periods expire you are snookered.
     
    Marty McDonald, 17th Jul, 2017
    #14
  15. tobe

    tobe Well-Known Member

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    Being snookered is interesting.

    It's where your current datails mean you can't service the debt you already hold. So no refinancing. No new purchases.

    Current lender ups rate? Suck it up. Revert to p&i? Suck it up. Sell one? Doesn't improve capacity. lost the rental income and tax benifits, still can't restructure/borrow.

    Cross securitised? Lender makes you repay the full sale price into loans for that that one you just sold that you thought would help you through the p&i repayments.

    Then you gotta pay cgt......
     
    tobe, 17th Jul, 2017
    #15
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  16. kevilian

    kevilian Well-Known Member

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    I agree... maybe best approach is to reduce debt at current level, after two years when the wind changes direction give another go...
    maybe think of investing in other categories... like shares, etc.... much easier...
     
    kevilian, 17th Jul, 2017
    #16
  17. dabbler

    dabbler Well-Known Member

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    I thought there was a story of a guy selling off lower body parts, I do not know what you do once you sell both of everything you have in pairs ?
     
    dabbler, 18th Jul, 2017
    #17
  18. dabbler

    dabbler Well-Known Member

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    Thought this was a comedic thread, but can see your serious.

    Instead of selling body parts or you wife/girlfriends jewelry, have you considered a second and or third job ?

    Have you thought of reducing your debts ?
     
    dabbler, 18th Jul, 2017
    #18
  19. Gen-Y

    Gen-Y Well-Known Member

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    Well, that isn't the issue with equity.
    My mentor tells me to sit this out and ride it out till favourable lending condition. Go enjoy your holiday and other activities.
    This is with almost $1m worth of equity and the big 4 bank isn't very helpful.
     
    Gen-Y, 18th Jul, 2017
    #19
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  20. Corey Batt

    Corey Batt Well-Known Member

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    That might be a long holiday - this is the new normal and we won't see a reversion anytime soon.

    When you have a regulator pushing these rules onto lenders saying '"this is the yard stick for what is to be considered responsible lending"- to change it to anything less would be to suggest you're doing irresponsible lending activities - OR that they were wrong. (which we know they won't ever say)
     
    Corey Batt, 18th Jul, 2017
    #20
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