Is Your Property Loan In Your Comfort Zone

Make Sure Your LVR Is Not Too High

When you are preparing to apply to purchase a property, its worth thinking about future situations involving your cash flow.
How can you see yourself being able to make the repayments if you have a minor or major bill involved with the property.

Such issues like emergency repairs, tenant damage, accidental damage, and losing your own cash flow come to mind.

All of these worst case scenarios should be taken into account and measured against your lending situation.
The last thing needed is a mortgage collapse because of a lack of short term cash flow to fund loan repayments. If your loan to value ratio (LVR) is too high you have no room to move, the higher loan usually means higher loan repayments also.

Age old saying: Plan for the worst, and Expect the best

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