6 Tips for Refinancing to Invest Sooner

I’m always happy to pass on great info...and this is great info! I’ve included a few snippets below lifted from the full article.

Utilising the equity in your principal place of residence (i.e. your home) is one of the easiest and quickest ways to buy an investment property. Are you thinking of refinancing your mortgage to buy an investment property? If so, here are six tips you need to know before taking the plunge.

Engage a mortgage broker rather than a bank direct

A bank will only offer you their home loan products whereas a mortgage broker will be able to offer you different loans from a range of lenders. Furthermore, not every bank will lend you the same amount of money, which could severely restrict the type of investment property you can acquire. By engaging a broker, you’ll be able to find the best loan product and deal that’s suited to your circumstances.

Determine how much your property is worth and make a budget

Your broker will be able to organise a valuation of your home, which will help to determine your borrowing capacity. You should also make a household budget to determine your discretionary income (i.e. money left over after weekly expenses, such as bills) and how much income you’re comfortable to allocate to the holding costs of the investment property (i.e. how much money it will cost you to hold the investment property each week).

Do you need more detail on this subject? Head on over to the full article here for more ideas and perspective. Afterwards, why not drop me an email to share your thoughts [email protected]; or call me on (0403) 296-221.

Thanks,

Tammie