The banks are getting tougher and tougher with lending criteria, especially with investors who seem to have been unfairly tagged as a bit of a problem in the lending space.If you're struggling to fund your next purchase or improvements then these five tips could help make the difference between a deal happening or not.
Is that bank really the best bank for you?
Do you have an owner occupied property?
LVR limits for rental properties are 70% LVR, if you've got an owner occupied property you could borrow 80% LVR on that. If you're not currently borrowing 80% against your owner occupied then you can ramp that up. If you're not living in a property that you own then you could consider moving in to one of your properties to allow lending up to that level.If you've got lending split across different banks then you could consider moving in to another one of your rental properties so you could borrow 80% against that property.
Valuations are your friend
Could you unencumber a property and take it elsewhere?
Are you maximising all income?
Does it really need to be a bank who funds your deal?
With new players on the market like Select Home Loans, you don't need to be working only with the traditional bricks and mortar banks. For example we had a client with 5 rental properties wanting to buy a sixth. Her bank said no more lending was possible at all. Select were able to take 2 of her properties plus the new purchase at just over $400K. She pays just over 4% in interest but the return on the new property makes it well worthwhile.It's not just mortgage lenders either. There are a raft of private funders out there. Remember money is so cheap that people with money are looking for a place to put it and get a return.. the private funders are firing up again.
Whatever your situation it's important to know that you're getting the right options and we're here to provide those for you. It's not about telling lies or doing anything silly, it's simply a case of finding the right policy to fit your personal situation and taking advantage of any areas that may suit you.We're always happy to offer our expertise free of charge to review your position and ensure that you're getting all of the right options for you.We hope this helps and we look forward to working with you in the future.Adam, Claire, Greg and the My Mortgage Team