ELIGIBILITY:
- Have 5%-10% savings
- - Required to assess the equity inother properties if you want to borrow more than 90%
- Good credit history (above average)
HOW TO INCREASE YOUR BORROWING CAPACITY?
- Choose the right lender
- - Lower your credit card limit
- Apply jointly with spouse so that all income can count towards in assessment
- - Buy positively geared property
- Fix the rate for 3-5 years
- - Some other factors such as rental income, other income, assessment rate, negative gearing, existing debt, and repayment behaviour
TYPE OF ACCEPTABLE PROPERTY:
- Standard unit, house, townhouse or land and construction
- More than 50m2 living area
- Location is restricted in high demand location
TYPE OF LOANS AVAILABLE:
- Professional package
- Basic loans
LOAN FEATURES:
- Interest only
- 100% offset
WHAT IS LOAN PURPOSE?
You can use loan for any legal purpose.
IS IT POSSIBLE TO BORROW 100% OF PROPERTY VALUE?
- You can borrow up to 105% with no LMI if your parents act as guarantors
- You can borrow up to 105% if you have other property as security
WHAT IS NEGATIVE GEARING?
When you borrow to invest but your interest and other cost exceed your investment income. This strategy can be used for tax benefit as this net loss can be claimed as tax deduction.