When entering into a contract it is important to ensure that you have allowed sufficient time to obtain finance approval. Most lenders work to a 21-28 day timeframe to provide unconditional finance approval, and then further 21 days to allow for documents to be prepared, signed and for settlement.

Many investors benefit from using the equity in their current properties to capitalize on the current state of the market and purchase more properties. This is an excellent way to grow your property portfolio.

Existing property can be used as security in the following ways:

Having a second Mortgage against the property. This allows the borrower to apply for a loan for 100% of the purchase price of the new property plus fees.

Increasing the loan facility on the existing property, to raise a deposit for the new property. This is beneficial if you are considering other lenders, want to avoid cross collateralizing, or require Lender Mortgage Insurance.