EP 021: How to play the forever game of borrowing with Aaron Whybrow

I’m sure you’ve heard the quote:

“Property Investing is a game of finance… with some houses thrown in”

Well, unfortunately….

That has never been truer than today.

In this current market climate, with interest rates increasing every month…

The banks are becoming more and more scrutinising in their lending criteria.

Most banks have tightened up their lending calculations,
Which can affect the way they assess certain metrics, such as your household expenditures etc…

Some banks have even begun to apply caps on rental yields to protect themselves from the increased risk in the market.

These days, there are so many traps that you must avoid…

Whether it be:
– Overleveraging and extracting too much equity, too early.
– Having active credit cards, personal loans, or car loans in your name.
– Or, maxing your borrowing capacity with the wrong lender, at the wrong time.

Avoiding these “lending sins” is absolutely crucial to maintaining your borrowing capacity so that you can stay in the game longer.

What’s the play?

How do we play the bank’s game,
While ensuring we can continue borrowing?


In this week’s podcast episode, Grant and I will be breaking down exactly this!

We’ll be inviting our mortgage broker Aaron back for another chat, this time to discuss everything you need to know about borrowing capacity, so you can play the forever game in property investing!- As well as equity, accumulation and more!

PS: Let me know your experiences with lending during this market environment!


All information we share is NOT financial or investment advice and is purely intended for entertainment and educational purposes only. Always seek professional advice before acting on any financial decision.

Episode Highlights:

00:00 Welcome to Property and Investing
02:46 Problems with borrowing money 
03:29 Borrowing for building a property portfolio
07:29 Extracting equity and cross-collateralised loans
14:10 When equity becomes a trap in itself 
15:06 Understanding the variability of your income 
16:02 Different ways you can get stuck with borrowing 
18:02 Unpacking the trap of wrong lenders at the wrong time 
24:07 Have banks become more scrutinous over time? 
32:00 Increasing income and deposits increases borrowing power
35:15 Borrowing capacity equals purchase price 
37:27 Negatively geared properties vs. positively geared properties  
39:16 Who wins the game of property investing? 
45:30 Time heals all borrowing capacity issues
46:15 Is speed a factor for borrowing capacity?

If you enjoyed this episode, please don’t forget to subscribe, tune in, and share this podcast!


About the Guest: 

Aaron Whybrow is the founder of Diagnostics and Finance, a Financial Broking and Personal Risk Insurance Business.

Diagnostics & Finance (ARW Financial Services Pty Ltd) is a Credit Representative 425540 of Finsure Finance & Insurance ACL 384704.

He is known as the ‘bagpiping mortgage broker’, who prides himself on having no ‘flats’ in his career. He blends his experiences as a former intensive care unit nurse and medical sales rep to provide the best outcomes for his clients.

To connect with Aaron and his team of mortgage professionals, head over to: https://propertyandinvesting.com/partners/diagnostics-and-finance/


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