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Tim S.
Tim S.
Moore Park, NSW

Can you refinance an investment property loan without a salary/income? I have 2 investment properties with a combined value of about $1.4m and loan balance of $600k. They are positively geared (just). Have quit work to start a new venture so no salary

I have no other assets except about $100k in cash which I will use to live (rent, bills, food etc) and to fund my new business. Will banks lend to people who can't show a regular income (other than through rental income)? I'm considering refinancing to get a better deal. Thanks

8 years ago

Hello Tim
It is possible although most lenders will only take into account 80% of the rental amount as income.
What's the reason for the refinance?


Hi Tim
No stable in come = high risk loan
High risk loan = high interest rate
Honestley while there are lender who can do this if rate is the only reason then you are probably better off with the lender and loan you already have
Albert - Awesome Lending Solutions

Hi Tim,
The answer will be specific to your situation so it is hard to gauge. There are lenders who will take it on, however as the banks will generally only accept 80% of the gross rental as income and will factor in your living expenses as part of the calculation, it would be difficult to get a premium rate loan. You may be better off to pay the current rate - have your broker negotiate the best possible rate - with your current lender and refinance when you can show a stable income.
Good luck with the new venture

As mentioned with other comments - lenders take 80% rent for servicing so if this loan under P&I repayments services plus covering living expenses and any other debts or loans (inc credit card limits). Happy to put your numbers through the servicing calculators. If the loans are or can be split with different lenders we can increase serviceability for the loans.

(e.g. same financials $850k with one lenders and $1.3M with another)

Hi Tim, the answer is yes potentially depending on the industry of your new business, your stage of planning and relevant experience/proof of concept. However as per other comments you may sacrifice rate because of the niche your in.. there is no circumstances where you could attract rates at the pointy end through a refinance.

You could potentially attract mid 4% rates if your ticking a number of the right boxes.

Regards Ariel

Hi Tim,

It may be possible depending on how long your new business has been registered and trading for. Multiple factors will determine how competitive the interest rate and loan conditions are.

John Maxwell
Senior Mortgage Consultant
Cocalex Holistic Mortgage & Finance Consulting
0434 544 225

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