Serviceability is extremely important when a lender, is considering whether or not to approve a loan.
The lender will review your assets, income and outstanding debts, as well as assessing if you can meet repayments.
Changes to APRA rules and the Royal Commission have lead to increased scrutiny and have forced lenders, to adapt serviceability metrics.
Investors need to be more prepared than ever, before applying for investment loans.
Here are a few tips from our Finance Partner, on how to improve serviceability and maximise borrowing power.
• Banks consider credit card limits as debt, so consider cancelling any unused cards
• Reduce your credit card limit
• Pay down outstanding debts
• Reduce expenses (ditch your expensive property manager and use RealRenta to automatically manage existing properties)
• Keep records of income and include information about any additional income (bonuses, commissions etc)
• Build up equity in existing properties to avoid LMI insurance
If you are after your next investment property loan, contact firstname.lastname@example.org and we will arrange for a mobile lending specialist from our trusted Finance Partner, to contact you shortly.
Saturday, 27 October 2018