Hi, I'm seeking advice from a lenders perspective. We have two investment properties and will be able to purchase a third...just. We will then have hit our loan limit. One of our properties has about 80k in equity which we have been approved to refinance. That would obviously increase the debt on that loan by 80k and it will be sitting at 80%LVR. We also have cash saved. Would this increased debt on this loan have a negative effect on our borrowing capacity for the third? We probably won't buy for a while and this 80k will just sit in the offset. Thanks..
Hi @Kozy Yes additional $80k will impact the borrowing capacity for the 3rd IP (if it hasn't already been taken into account in evaluating borrowing capacity for the 3rd IP loan)
No, not at this stage.. we may look to buy in a few years time. Being in the Sydney market we might just sit it out for a while.. We will perhaps sell a house to buy our own PPOR then redraw to invest again...
It depends which lenders you're looking at. If you’re going direct to the bank and only dealing with them, you probably have more options than you think. You will also have an opportunity to debt recycle any cash through your PPOR loan if you have one, but I do understand the desire to no use any cash. If you haven’t spoken to an investment savvy broker you can most likely do more than you think.
