Hey Olly, As you know the major banks have really tightened the screws on lending now. I am trying to work out a way to buy another house without the need for a large deposit that the banks would require.I have a good lending history with my local bank and was wondering…..
When you eventually find a good deal, and say the property has a valuation of $210,000 And you strike a deal with the vendor for $170,000 can you use the equity you would have straight away as a deposit, that the bank would require for the loan?. Even if you only had $10,000 cash as deposit could the bank use the equity as a top up for the deposit?
Any help on this would be much appreciated. I have enjoyed reading your books and Keep up the good work and support you give to us investors!.
Yes the bank may use the current equity to top up your deposit for some other, but that would depend how much equity you do have.
If you have say 50/50 equity the bank may lend you another 20%-25% plus your deposit plus a mortgage on the new purchase