I've recently wanted to get into real estate investing but I've spoken with two chain brokers (Aussie and Lendi) who have both told me that I can't get an equity loan out. One just told me I can't with no further information (didn't even ask what my equity is) and the other told me that banks don't like to do equity loans anymore (again, didn't ask me what my equity is).
Am I missing some kind of information or have I just had some bad luck?
@Jordan Sinclair How has the lending tightened up over here? Are there more requirements beyond just the morgage remaining vs the value of the property for an equity loan? Are there any alternatives I can think about?
@Jordan Sinclair How has the lending tightened up over here? Are there more requirements beyond just the morgage remaining vs the value of the property for an equity loan? Are there any alternatives I can think about?
There are many factors at play. What are you trying to achieve?
Some changes are for example, interest only repayments were rarely scrutinized. Now a credit check and repayment plan can be required. Also borrower age is factored in. Borrowers over 55 can find extras hoops to jump through.
RIchard, there are some options to get equivalent of "equity loans" in Australia, just a little harder to find. I would recommend getting yourself a good mortgage broker, they will be able to shop around and find lenders who can give you a line of credit against your equity.
Lending regulations from APRA have loosened here in the past few weeks, prior to that, essentially the bank watchdog, was throttling the lending market for all except first home buyers who cant afford to purchase here anyway...
A few weeks back they removed the tight leash on the banks, and with the interest rate cut past couple of weeks, funding will get easier, so if it has been a month or more since you tried a few banks, I would start trying again...but again, would highly recommend a mortgage broker to assist.
Let me know if you dont have one, I have a number of contacts
I'm just looking to get into real estate investment. Looking at Australia's pension and my own super, I'm going to be really struggling if I don't make changes now.
Thanks for all that info, that was super useful! Would you be able to DM me your recommended brokers? Once family life has calmed down a bit (newborn, hospitals, etc.) I will definitely get in contact with them (also in Melbourne).