However, u need to prove to the bank that you can repay (service) the debt.
$100,000 I/O (interest only) at say 9% is $750 month.
If its an investment property and... you can rent it out for say $200-$220 week that would pretty much repay the debt each month. The bank would look favourably upon this.
How to get someone to sign up a lease on the property your buying before you buy it?
One way is to speak to the agent selling the property. tell him/her what rent amounts you could get and even ask them to find you a tenant as a condition of the sale (purchase) to you.
Agent will like this as their property team get a listing and the property gets sold.
The bank will like it too as the property then has say a 6-12 month lease attached to it.
Another way is to tell the bank your parents will put up some property as collateral against the loan, however tell the bank that this will only be in place for the first 12 months, to show the bank u can repay the loan on time etc, then your parents can have their house security back.
