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NEW INVESTMENT – NO CASH

You can buy a new investment with no cash by using your current home as security along with the new property. This approach, called cross-securitisation, lets you combine the value of both properties, lowering your loan-to-value ratio (LVR) and reducing risk.

For example:

  • Your home is worth $800,000, and you still owe $200,000 on it.
  • The investment property costs $625,000 (including stamp duty and other costs).
  • Your total loan would be $825,000, secured against the combined property value of $1,400,000.
  • This keeps your LVR below 60%, which is considered a safe level.

You can split the loan into two parts:

  • $200,000 for your home loan.
  • $625,000 as an investment loan, helping with tax benefits.

Since both properties are linked to one lender, you get financing without needing to refinance and withdraw cash for a deposit. This method works well if you already have a specific property in mind. If not, you can get pre-approval to find out how much you can borrow for a stand-alone investment loan.

Book in a free, no obligation ph call today at https://westlend.com.au/book-an-appointment/

Other articles of interest – https://www.domain.com.au/news/affordable-property-in-western-australia-local-tree-change-region-sees-prices-explode-by-31-5-per-cent-1259822/

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