#1 Use Positive Cashflow to Boost Serviceability
The lending environment hasn’t been the most favourable to investors in recent years.
The royal commission has tightened lending criteria across the board, and increased lender scrutiny.
Showcasing excellent serviceability is the best way to circumvent all of that.
At the end of the day, lenders look at all investment loans as a risk. Their goal is to mitigate that risk as much as possible.
After all, they lose money if you default.
By establishing positive cashflow in your first property, you’re creating an income.
And that counts towards your serviceability.
The lender sees that you have more money coming in. And that means they’re more likely to accept your loan application.