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Lending Scenarios

All Banks and Institutions have varying requirements when assessing the amount they will lend on any purchase and the following two examples are provided as a guide only.

Example 1 - 50% of total costs

Purcahse price of Unit:
$400,000
Purcahse price of Rights:
$1,100,000
Stamp Duty, Legals:
$75,000         (estimate 5%)
Total:
$1,575,000
Borrowing Limit:
$787,500
Cash Required:
$787,500
Total:
$1,575,000

Example 2 - 80% of unit cost and 55% of rights

Total costs in line with the above - $1,575,000.

Borrowing Limit

80% of Unit:
$320,000
55% of Rights:
$605,000
Total:
$925,000
Cash Required:
$650,000
Total:
$1,575,000
  • The above examples have been assessed on the basis that you will have cash as equity for your purchase.
  • Most financiers will be prepared to consider other security in lieu of cash equity.
  • When alternative security is offered, serviceability of borrowing amount will be the key assessment.
  • Lending Ratios to 75% of total purchase price are also available with some financiers.

"We felt that Barry was professional and genuinely interested in our requirements and were committed to giving us the best possible service and advice to fit with our personal situation and therefore obtain the best return on investment."

Ron & Jenny Tavinor - Koko Riverside Apartments