Property investment finance is the one of the first obstacles that the potential investor faces…the benefits and advantages of investing in property for wealth building purposes are quite obvious, and if no deposit lending including costs was freely available, naturally everyone would be an investor!
However this is the post Global Financial Crisis era, where banks who were happy to give you an umbrella when it was sunny are now taking it away when the rain starts to fall.
Loan to Valuation ratios (The ratio of the loan the lender is willing to advance against the value of the proposed property) have taken a step or two backwards….from the heady days of No Deposit, No LMI lending for investment purposes, we are now looking at restricted lending requiring at least 5% deposits plus costs.