One of my favourite videos on this channel to date ! I loved the two examples, the illustration and how each component increased each persons borrowing power - as well confirming that im on the right track on my property journey by doing all of these things including moving back home ❤❤❤
Extremely well-crafted informative video. Thank you so much. Just wondering if changing the duration of payment affect the burrowing capacity? Like here you have used 5 years? Could I burrow more if I burrow it for 10 years?
Hey mate. The answer is Yes and No. Going for 10yrs Interest only with major banks + 2nd tier lenders, it will decrease your borrowing capacity more because they subtract IO term from the remaining loan term + load a buffer on top of your rates. However, with some 3rd tier lenders, they will just look at just the loan repayments per month only (no buffer on rates). So if loan is I/O, your borrowing power with them is stronger (especially if rest of portfolio is IO too). Hope that helps.
Great episode! I think I have pretty good knowledge about borrowing power, but Morgan explained this in such a systematic way and I learned a lot from your conversation with him! Good job both! Also I didn’t know there’s such a thing like 3 tier lenders 😳 (a 8.59% interest rate on a million dollar loan seems crazy 🤣)
Would need Morgan to 100% check but from my experience yes as long as your situation meets their policy and it’s the best move forward for your portfolio
Great episode. One thing I'd probably add that might help others, is make sure your broker understands property investment and has a successful portfolio themselves. Although the first couple of mortgage brokers I used tried to be helpful, I realised they were asking and doing the wrong things (which kept getting me stuck and 'resetting') after I started working with my current broker who is a successful investor themselves.
Very true mate 🙂 This is normally said in every episode when we talk borrowing, It's one of the reasons I wanted morgan for this ep as he actually walks the talk and has built his own portfolio.
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Thanks for having me on Todd. Loved peeling the layers back to ultimately show how it really is possible in 2024.
Always fun making episodes with you mate 🙂
Minute 28 to 31 was so good, I have been waiting forever for someone to fully explain tier 2 and 3!!
Thanks mate! Yeah there can be a lot of confusion around this subject, glad it’s helped 😊
Most people know the theory of increasing borrowing power, but to look at real numbers was great. It makes it tangible and real!
Thanks mate! 100% so much easier to picture what could actually help when you see it laid out
This should be your flagship episode as it explains step by step that almost anyone can do it, with a bit of work of course.
Great job 😊
One of my favourite videos on this channel to date ! I loved the two examples, the illustration and how each component increased each persons borrowing power - as well confirming that im on the right track on my property journey by doing all of these things including moving back home ❤❤❤
Extremely well-crafted informative video. Thank you so much.
Just wondering if changing the duration of payment affect the burrowing capacity? Like here you have used 5 years? Could I burrow more if I burrow it for 10 years?
Thanks mate!
Pretty sure the answer is yes but I’ll ask Morgan to weight in to clarify 👍🏼
Hey mate. The answer is Yes and No. Going for 10yrs Interest only with major banks + 2nd tier lenders, it will decrease your borrowing capacity more because they subtract IO term from the remaining loan term + load a buffer on top of your rates. However, with some 3rd tier lenders, they will just look at just the loan repayments per month only (no buffer on rates). So if loan is I/O, your borrowing power with them is stronger (especially if rest of portfolio is IO too). Hope that helps.
Thank you for your reply. It’s clear now.
Great episode! I think I have pretty good knowledge about borrowing power, but Morgan explained this in such a systematic way and I learned a lot from your conversation with him! Good job both!
Also I didn’t know there’s such a thing like 3 tier lenders 😳 (a 8.59% interest rate on a million dollar loan seems crazy 🤣)
Todd thank you again! Awesome guest Morgan with great inside tips!!
Glad you enjoyed it Buzz 🙌🏼
Love your videos Todd! Run us through your credit score when done…
haha will do
Great sesh gents gonna change some investing lives here 😊
Gday Jef 😂
@@Ryoka1 hello legde 🔥👏
Thanks mate 🙌🏼
Todd great video I am the guy met at the gym and this is one of the podacsts I was looking for 👍
Haha hey bro! Glad you enjoyed it 😊
Good Job Morgan! Hey mate!
He really brought the goods!
Would it be possible to refinance with a first tier lender from one of the 2nd or 3rd tier lenders after some years?
Would need Morgan to 100% check but from my experience yes as long as your situation meets their policy and it’s the best move forward for your portfolio
Great episode. One thing I'd probably add that might help others, is make sure your broker understands property investment and has a successful portfolio themselves. Although the first couple of mortgage brokers I used tried to be helpful, I realised they were asking and doing the wrong things (which kept getting me stuck and 'resetting') after I started working with my current broker who is a successful investor themselves.
Very true mate 🙂 This is normally said in every episode when we talk borrowing, It's one of the reasons I wanted morgan for this ep as he actually walks the talk and has built his own portfolio.
Someone should write an aussie version of “millionaire next door” and I’m pretty sure “dominos” will be placed as millionaires choice of pizza haha
😂
How about having an example with a woman’s name?
We often do just not in this episode