How to Buy A Second House for $0 Deposit

00:00 How to buy a second home in 2021.
00:19 Why would you want to buy a second home with no deposit?
02:06 What is equity?
04:36 How to you leverage your property to have a no deposit loan?
08:17 Cross Collateralization
14:51 Costs involved when buying your second home.
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[@neal5812]

mate this is fire. I love this. Such great information for people of all ages

[@MortgageBrokerAustralia]

Thank you! Much appreciated :)

[@DaskehPK]

Amazing video - very clear and very informative. Thank you so much for making this!

[@MortgageBrokerAustralia]

You're very welcome!

[@shuailuo]

Great video mate. Especially the second part to tell people the truth of Cross Collateralisation loan. I heard some property investors were trapped in that type of loan before. Is there any way to reverse the Cross Collateralization loan into two independent loans?

[@MortgageBrokerAustralia]

Thanks for watching, there certainly is. The good news is you can unwind the set up by refinancing with 2 stand-a-lone loans.

[@sonjakozman1699]

What sort of situation would a Cross collateralisation be favourable? Great video BTW. Brissy boys are killing it.

[@MortgageBrokerAustralia]

Thanks for watching Sonja. Great question, please check out: www.huntergalloway.com.au/cross-collateralized/

[@jonspencer8324]

so informative and encouraging. im based in brisbane and will contact soon for a meet. cheers

[@MortgageBrokerAustralia]

Thanks Jon :)

[@LauraDaulton501]

Great video. Makes things a lot clearer. Question - we have two properties, and despite the boom we now only have around 65K in usable equity. We want to keep purchasing homes to reach our goal of passive income. Any ideas on how to increase our equity?

[@MortgageBrokerAustralia]

Thanks Noel, great question. Please check out: www.huntergalloway.com.au/7-ways-to-create-home-equity/ where we cover 7 ways of creating home equity faster, including case studies and one technique you can use today!

[@jbmzahr1807]

Hi, This was a really good video. Just a question from a broker side of view. If you were to do this would you do 2 applications. One for the cash out and then one for the purchase of the property or would you do this in one application?

[@MortgageBrokerAustralia]

Thanks Jbm, great question. This would be done in 2 applications. The first would be the cash out and then the other would be for the purchase.

[@sonjakozman1699]

We did a house recently this way and essentially created an additional mortgage of 80k. A year later we can consolidate the loans and create another.

[@ricnicodemus3865]

This is the explanation i was looking for!! Thank you. The next question is how all these loans going to get paid once the dust has settled.

[@MortgageBrokerAustralia]

Thanks Ric, great question and will be interesting to see how things pan out.

[@rubyredjeans]

You live in one and rent out the others.

[@bign1667]

2021 strategy - someone die from COVID? Move in and be a squatter and it's yours legally after many years time for free. You just need to maintain it.

[@MortgageBrokerAustralia]

Thanks for watching N.A!

[@mikeee6317]

Hi mates, might be unrelated to the video but what is the difference exactly between borrowing from banks versus private non bank lenders? Ta

[@MortgageBrokerAustralia]

Hi Mikeee, the main difference is their legislative requirements. Essentially it means that non-bank lenders, also known as non-conforming, are able to do things which the bank's can't. An example of this is using actual debt repayments rather than sensitised for servicing. This means that it's common for these lenders to approve loans which traditional bank's won't. Depending on the type of non-bank you approach, they are more a lender of last resort as generally you'll pay a premium for their services. Hope this helps and thanks for being a subscriber :)

[@samsydney7658]

Hi. Good plan but not complete picture. You didn't discuss the monthly repayments and how it will affect life style. It's not that simple. You may end up unable to serve both loans. Usually rent will not cover the payments with deposits close to 50%, isn't it? Thank you for info

[@MortgageBrokerAustralia]

Thanks so much for the comment Sam, depends on the property and also if you have the loan set up as interest only or not.

[@123macedonian]

What If a property is valued under initial purchase price? E.g. purchase price 440,000 current value by the bank $410,000 with loan owing $325,000 could I potentially borrow 20% or do I have this wrong ? I'm Trying to purchase a second property and would love to hear from you. :)

[@MortgageBrokerAustralia]

Thanks Adrian, this is where having a few different banks value the property might come in handy to see if there can be additional equity accessed. Feel free to reach out if we can be of any further assistance www.huntergalloway.com.au/contact/

[@williamlewis2387]

When i refinance my original loan in this example to now be 390k owing, will this remain the same amount of years in repayment or can it be negotiated back to 30 years?

[@MortgageBrokerAustralia]

Hi William, yes you can either keep with your current term or extend to 30 Years. Of course this is provided you meet the banks eligibility. Thanks :)

[@benbucklerboards]

What happens if you convert your original $500k home to an investment property, cash out the equity to buy your bigger house, then sell the original house later, in respect of capital gains tax?

[@MortgageBrokerAustralia]

Thanks Ben, that's a great question and one that would be better positioned with your accountant who will be in the know with how that would work tax wise. Thanks for watching.

[@suhailmaleeha]

How would it work if you have payed your first house off and have no repayments on it?

[@MortgageBrokerAustralia]

Thanks Suhail, the property could be leveraged as equity. Please visit: www.huntergalloway.com.au/cross-collateralized/ for details on how it might be structured.

[@RcSpyDer4193]

Is a guarantor loan still available in 2021? We have been offered by mother in-law She has a home worth 550k owned We have no deposit Our current rent is 2k a month

[@willh9161]

Yes, potentially. Have a chat with a broker and discuss your situation.

[@97Mcnasty]

Would u sacrifice living with your in-laws to save, not just extra deposit but a buffer.

[@MortgageBrokerAustralia]

Hi Luke, yes guarantor home loans are still available in 2021. Sounds like there's options there from what you've said :)

[@RcSpyDer4193]

@@97Mcnasty we would but she is in Yeppoon and we are in Brisbane. So unfortunately no

[@MortgageBrokerAustralia]

Thanks Will, spot on :)

[@jimmyjamespwnysux]

bro who pays off a 500k house down to 150k in 5 yeears? you would have to be on a huge amount of cash for a wage

[@MortgageBrokerAustralia]

Thanks for watching Edward! Check out how extra repayments on a mortgage can make a huge difference on how quick the mortgage is paid out: www.huntergalloway.com.au/home-loan-extra-repayment-calculator/

[@vickityson5259]

It IS possible, depending when the home was purchased and how many extra repayments have been made and how often. Perhaps the home was purchased at a time when buying prices were MUCH lower (only a few years ago) and now the value has significantly increased? Perhaps it will be harder for those who have purchased more recently at higher prices, with higher cost of living expenses as they are now.