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  • #987267
    EricTheRed
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    I have a startup business which requires the minor sum of about $80,000 to progress.
    I could finance using the equity in my home.
    I already have a mortgage on my home with a bank but have at least $400,000 equity which I would like to use to finance the business.
    The bank will not extend me the finance because I currently don’t have an income and their rules state that I must have the capacity to repay.
    The startup should be able to earn enough in 2 years to negate any financing issues.
    How can I tap into my home equity now to get a low interest loan?
    I don’t want to go down the path of finding a business partner.
    If nothing else works, I will just have to sell my home.

    Thanks in advance for your advice

    #1161871
    LucasArthur
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    Howdy

    Thats tricky, any lending from a finance institution requires serviceability of the loan.. Banks, unfortunately, like to know you have secured income coming in when applying for the loan..

    A broker may be able to steer you in an alternate solution, although servicing will always be a stickler in this situation..

    Its funny really, as if you had applied for a redraw facility before you left full time employ you would have had the funds ready to go.. just the way it is sometimes… :(

    Let us know how you go.

    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
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