Let’s face it... APRA hasn’t made it easy for investors to get loans in recent years.
Even though we're expecting some very positive changes in 2019, they’ve still encouraged lenders to create tighter criteria.
But don’t let that scare you away from property investing.
It’s still the best way to manufacture the future that you’ve always dreamed of.
You just need to get that investment loan approved first.
Here are a few techniques that may help you.
Technique #1 – Focus on Serviceability
Lenders want to see that you can afford the loan.
That much is pretty obvious.
But what’s key is that you understand what goes into their serviceability calculations...
They’re going to look at your current income and expenses...
Any personal debts that you have might count against you here too.
Increasing your income isn’t really an option until you start investing and generating a yield...
But you can do something about those debts that might hold you back...
Pay them off as quickly as possible to boost your serviceability.
Technique #2 – Reduce Your Credit Card Limit
You may have a credit card that has a higher limit than you really need.
The issue here is that some lenders consider the credit card’s limit when calculating expenses,
rather than how much you’ve actually borrowed...
If you have a $10,000 credit limit, but you only use $2,000 of it per month...
make the reduction immediately to put yourself in a better position.
Technique #3 – Be Realistic
It’s as simple as that.
If you’re applying for more than you can realistically afford...
you’re turning yourself into a risk for the lender.
And if they refuse the application...
you’re going to make it even harder to get a later application accepted.
Be realistic and borrow within your means.
To do that, you need guidance from buyer’s agents who can help you build an investment strategy.
That’s where Dashdot comes in.
Are you ready to start building towards your future with a portfolio of high-performance properties?
We invite you to take our 15-second application, to see if we’re a good fit, and to start taking action on your High Performance Property journey.
We look forward to going on this journey with you.