Choosing the right investment mortgage really depends on your particular financial goals, there are many different borrowing options and strategies available and not all banks and lenders treat an assessment for property investing the same way, here are 5 ways to help you increase your borrowing capacity:
Not all lenders utilise negative gearing benefits when assessing your borrowing capacity, only if your portfolio is positively geared would you consider one of these lenders, knowing which lenders utilise the benefits of negative gearing is essential.
Depending on the bank, you will be able to use between 75% and 100% of the rental income in their borrowing capacity assessment, know which lenders use the full 100% of the rental income.
It is possible to increase your borrowing capacity with several banks by choosing a fixed rate investment home loan of 3 years or greater, know which lenders assess your borrowing capacity differently for fixed rate lending of 3 years or greater.
All banks differ in the way that they assess overtime, bonuses, commission, allowances, trust distributions, dividends & self-employed income, know which lenders to use to maximise the assessment of any extra income.
Other investment mortgage debt
If you have other investment loans, most banks will assess these at their benchmark rates, potentially adding up to 2 per cent to the actual rate you are paying, reducing your investment mortgage borrowing capacity substantially, know which banks allow servicing of these loans at their actual interest rates.