if you've hit your borrowing capacity..

Thanks Corey

 

You won't be able to borrow more than 80% of the residential property value (if that). If you've already released equity to the point of having $400k cash, you've already got your solution. Use that cash for deposits & costs.

 

Hi
If I have 50% deposit and a exisiting house currently rent out for 550 per week, can I get a commercial loan for $300K-400K , my serviceablity is maxxed out

 

50% deposit will certainly get you on your way there, but there are a number of conditions which can only be determined out by a broker assessing your situation in depth.

 

thanks Corey

 

with recent change in lending policy, my broker say I can't even service my current debt. My situation is I have $450K cash , and want to buy a residential property valued 800-850K, is there any chance I can have the funding for the shortfall?

 

Get another opinion. It may be another broker might have another lender on their panel that is better, or there might be a policy niche they are more aware of etc.

 

Ask your broker to run the numbers using Firstmac or Homeloans Ltd (accelerate and flexi) servicing calcs and then see what the results are.

 

There's always a chance - primarily that your current broker may not have explored *all* options available. If you've been told you've hit the servicing wall, it may be worth getting a second opinion.

 

Quick question

while on the topic of using commercial loans

can a residential property be purchased under a commercial loan if the intention is to use it as a commercial property?

Example buy residential zoned land (typical can be a purchased under a residential loan) to construct a boarding house (permitted on residential zoned land but once constructed can be considered commercial)

 

that is exactly my intention too, buy residential and will build a boarding house, I don't mind paying higher interest If need to

 

Yes you can purchase resi property under commercial lending but you are subject to commercial lending terms (LVR, fees, etc) so it may not suit to do the purchase under commercial lending.

What we do is do the purchase where possible under resi lending with the lender we intend to use for commercial lending construction. It saves a bit of fees (valuation, app fee, etc) and they can do a higher LVR.

 

Yes but may have to be a company borrower and same company on title. So as is exempt from consumer protection regulations.