Lenders that are generous on serviceability

My biggest problem at the moment is not the serviceability but the LMI and for equity releases, it'll be at 80% and 20% for the purchases. Annoying but it means I need to save and build up for the next one. Seems like I am buying my first home all over again and being an aspiring first home owner!

 

I think your problem is better than the reverse. No serviceability means you can't do anything except sell or JV or pay down non deductible debt (buy NRAS?) or be extremely creative (which isn't easy).

On the other hand, no equity generally means you just have to wait a bit for your properties to go up in value and you can go again... of course, that's not a given, but it's more likely than your serviceability becoming better by waiting. Putting up rents by $10-$20 doesn't do a heap.

 

yes, that's right @Gockie, the additional rent increases didn't help. I've had abit of an increase in my income as well, but guess it's a matter of waiting for the value to go up abit more for the IP and have abit more saving for the next property. Really annoying as my poor broker had everything mapped out for our next couple of moves but it is what it is and affects everyone. As much as I hate it, may have to go down the reno route again.

 

That's a positive outlook - accepting that the conditions for investing change every single day and a good investor accepts this and finds new ways to move forward.

In reality property investment is a long term strategy - certainly we've seen a lot of aggressive investors come into the market in recent years trying to make double digit purchases in 1-3 years, but the reality is you can still build a large portfolio which will give you positive retirement outcomes, you just need to be strategic in thinking and patient with time.

 

Just thought I would bump this as the lending environment seems to have become a lot stricter from just one year ago.

Does anyone know which lenders are currently the most generous in terms of serviceability?

Thanks.

 

Liberty, Latrobe and Pepper. Used to be Westpac aa well but they are know inline with the rest.

I predict they to will be homoginised with the rest in the near future as APRA/ASIC cast thier eye over the non bank sector.

 

Bankwest just changed their calc to assess over 25 years instead of 30, as of yesterday.

 

But that is no reason for the govt too blink, i seen it in in the first days of internet regs, like most things, it was stuffed up.

As the market cools, just what the doc ordered from where i sit, a good dash of cold water with a truckload of ice......all so they can start stimulus in a few years minus what Ruddy had to play with.