{"id":2069,"date":"2016-09-07T23:57:38","date_gmt":"2016-09-07T23:57:38","guid":{"rendered":"http:\/\/www.trc-gorod.ru\/?p=2069"},"modified":"2018-06-26T11:46:32","modified_gmt":"2018-06-26T01:46:32","slug":"increase-borrowing-capacity","status":"publish","type":"post","link":"https:\/\/trc-gorod.ru\/increase-borrowing-capacity\/","title":{"rendered":"How to Increase Your Borrowing Capacity"},"content":{"rendered":"

\"credit-card\"A common problem many investors face is the ability to continue to borrow money. Their borrowing capacity could be impacted by one of three things:<\/p>\n

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  1. They have plenty of equity but don\u2019t make enough money.<\/li>\n
  2. They make enough money but don\u2019t have enough equity.<\/li>\n
  3. They have neither equity nor do they have enough income.<\/li>\n<\/ol>\n

    Do you fall into one of these categories?<\/p>\n

    The following strategies are a good start towards improving your ability to borrow. \u00a0For more information about how TRC-Gorod can help you improve your cash flow, register to attend our next Property Investor Night.<\/p>\n

    These FREE events are packed with information about the markets and are always geared around current issues and strategies designed to increase your bottom line. Click below to find out more!<\/p>\n

    \"pin-register-banner\"<\/a><\/p>\n

    Slash your available credit<\/h2>\n

    For every $1,000 credit limit, the bank will reduce your serviceability by $30.00. \u00a0This means that if you have a $10K limit, the bank will assign $300 to your unallocated funds – even if your card has a zero balance!<\/p>\n

    Get rid of all credit cards but one that suits your needs and you\u2019ll instantly improve your borrowing capacity.<\/p>\n

    Split liabilities with your partner<\/h2>\n

    If it fits with your strategy, you could buy property in your name only and shift some of your expenses over to your partner.<\/p>\n

    For example, if you have dependent children you could show that your partner is responsible for the financial costs in connection with their care.<\/p>\n

    \"couple-holding-hands\"Loan shop<\/h2>\n

    As you know, each lender has different criteria and loan programs. Shop around for one that is a good fit for your particular needs.<\/p>\n

    Add unsecured debts to your loan<\/h2>\n

    Unsecured debts such as credit cards or personal loans have short repayment periods eating up more of your monthly income.<\/p>\n

    This means that these types of debts will be applied more stringently against you in the lender\u2019s calculations.<\/p>\n

    If it fits with your personal situation, you could roll these unsecured debts into the mortgage, thereby reducing your overall financial commitment on paper.<\/p>\n

    Granted, you\u2019ll still owe those monies and you will pay more over time, however this is an option you can use to increase your borrowing capacity.<\/p>\n

    Extend the term of your loan<\/h2>\n

    A longer loan term means lower monthly payments which obviously will improve your borrowing capacity.<\/p>\n

    Although you will end up paying more interest, it\u2019s smart to use this strategy on a short term basis as you grow your portfolio.<\/p>\n

    \"term-of-your-loan\"How to Continue Growing<\/h2>\n