Banks and lending at the moment !

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Forums › Finance and wealth management › Banks and lending at the moment !

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eracode

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#3040108 21-Feb-2023 16:05

martyyn:

Sorry, I must have not explained it very well. The potential purchase is not commercial but we fall below the requirements for resource consent to run a commercial property from it.

We currently have our family home and a rental.

Are you giving the lender mortgages over all three properties? When you talk about your LVR being 60%, is that based on the value of your first two properties or all three?

Sometimes I just sit and think. Other times I just sit.

networkn

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#3040127 21-Feb-2023 16:17

johno1234:

The reason *all* the banks are hard to deal with (for mortgages and loans) is the responsible lending legislation and other banking rules that have come into force over the last decade or so.

Yup, but some are worse than others, and when you are dealing with a bank who can see all incoming and outgoings, it should be pretty clear to them if you are a financial risk or not.

mudguard

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#3040178 21-Feb-2023 16:26

Could you sell the rental to buy most of the third property?

martyyn

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#3040500 22-Feb-2023 11:11

eracode:

Are you giving the lender mortgages over all three properties? When you talk about your LVR being 60%, is that based on the value of your first two properties or all three?

Just redone the sums to be sure. Current LVR 21% using KB e-values.

Mortgages over the three properties would give a new LVR of 48%.

We'll be splitting the lending, extend current KB lending for the deposit and add the new property to a new lender.

martyyn

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#3040501 22-Feb-2023 11:11

mudguard:

Could you sell the rental to buy most of the third property?

We could but then we lose the income.

concordnz

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#3040503 22-Feb-2023 11:22

martyyn:
eracode:

Are you giving the lender mortgages over all three properties? When you talk about your LVR being 60%, is that based on the value of your first two properties or all three?

Just redone the sums to be sure. Current LVR 21% using KB e-values.

Mortgages over the three properties would give a new LVR of 48%.

We'll be splitting the lending, extend current KB lending for the deposit and add the new property to a new lender.

That should work.
Keep the borrowing loaded against new Property & Personal home. (avoid loading the Rental)
The new bank might only go 60% on the new property, and the rest, you will get by extending the family home.

Try not to let (either of them) include the Rental property in their securities. - this will maintain your future flexibility & reduce headaches if you decide to sell it in the future.
(you could get claw backs by the bank out of the sale price if it is used as a Security)

But don't worry about the loan loading amount (I forget its proper name - it will be 2 - 2.5 x the value of the loan [this is fine & normal].

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martyyn

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#3040506 22-Feb-2023 11:25

concordnz:

The new bank might only go 60% on the new property, and the rest, you will get by extending the family home.

This is the plan. KB have just approved their part we're just waiting on the new lender to confirm the rest.

concordnz

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#3040510 22-Feb-2023 11:40

I'd try and get a bit extra from KB,
As an overdraft/flexi, say 20k-30k more.
Moving sites has a way of throwing up unexpected costs, even if it is just furniture/desks, or rewiring IT networks.
It much nicer to be able to draw down a little extra for this, rather than have to fund these lumps out of cashflow, when you already have the disruption of a move....

martyyn

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#3040512 22-Feb-2023 11:46

concordnz: I'd try and get a bit extra from KB,
As an overdraft/flexi, say 20k-30k more.
Moving sites has a way of throwing up unexpected costs, even if it is just furniture/desks, or rewiring IT networks.
It much nicer to be able to draw down a little extra for this, rather than have to fund these lumps out of cashflow, when you already have the disruption of a move....

Yep, we got that all under control :)

networkn

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#3040513 22-Feb-2023 11:47

concordnz: I'd try and get a bit extra from KB,
As an overdraft/flexi, say 20k-30k more.
Moving sites has a way of throwing up unexpected costs, even if it is just furniture/desks, or rewiring IT networks.
It much nicer to be able to draw down a little extra for this, rather than have to fund these lumps out of cashflow, when you already have the disruption of a move....

Definitely.

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