Trying to get finance

Hi all, it has been a while since I have been on the forum.

I have found a property of interest to me and am thinking of buying in conjunction with a family member. Servicing the loan should be no issue, but the capital to put up for the loan is the potential sticking point, so wondering what flexibility or options we may have.

Between the two of us, we have 4 houses with some equity in them, but not enough to put up 20% and avoid LMI. It will only be about 5% of the purchase price plus stamp duty. Just wondering what options we may have to secure the loan without any LMI?

There is the conventional options of paying a larger deposit, however that money is currently set aside for the renovation we are part way through on our current home as well as COVID buffer. Or to look for an additional investor. I have close to $200k worth of stock which at this point I would like to avoid selling as there is (in my opinion) a lot of upside still on this stock, would it be possible at all to use the stock value to secure the loan? If so how does this work, and does it put any restrictions on the buying and selling of stock?

The property is 4 units on the one title, if my brother was to move into one of the units, would it mean that we are eligible for a home loan rather than an investment loan?

 

To secure a loan without LMI you will need at least 20% deposit generally.
And if it is 4 units on one title you would need a large deposit.

 

4 units on one title has a limited number of lenders that will even consider it. A 20% deposit would be the minimum you'd need, but most would want even more.

Honestly if you've got 4 houses between you and you've only got equity enough for 5% of this new deal, I'd say you're at the extreme end of leveraging and this may not be a prudent risk at this point in time.