This one is for all the motgage brokers (MB).
After speaking to two different MB, and went through all my financials, they came up with different amounts that I could borrow over and above current mortgage, from a very similar sub-set of financial institutions. Specifically, one said $240k whilst the other said $315k.
What drives these differences with the same information?
James
Hi James,
Was the different amount from the same lending institution?
The lending criteria from one lender to another can sometimes be substantial, this may be the cause of the vast difference in the advised amount,
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
They were different, one was Aussie (240), the other Bank of Melbourne (315). But I know, that both institutions were in the list of each broker’s software package used to determine the figure. I would have thought they would come to a very similar result.
James
Hi James,
Hmmm interesting, Can you let me know who they were? you can e-mail me if you dont want this info on the forum,
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
James,
They should have been similar.
Email Steven. He is a very capable broker and I am sure he will have the correct figures.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
James,
It is most important that your mortgage broker compares “apples with apples”. The features of a loan such as costs, term, interest rate, accessibility, etc… all add to the cost of the money and affect your monthly repayments.This, coupled with a lenders benchmark rate, acceptable income, and cost of living standards, all affects the amount you can borrow.
Using my calculator for a single person on 50K with no debts I get a range of 206K – 325K spread over 91 product variations.
It is all a balancing act “features” : “Amount” : “Rates”
Tony.
[email protected]
“Making Finance Easy”James,
Different Lenders use different ‘servicability rates’ (interest rate used to calculate borrowing limits) plus they have different Cost Of Living figures. On top of that, the two Brokers may have added their own assumptions – or the software could contain built-in assumptions – that differ. In any case, the Brokers should have taken you through what they did, and explained each and every figure.Good luck with your future investing.
Iain MacKenzie
Principal
Smartline Home LoansI’ll help you choose the best loan for YOU… FREE
Over 25 Banks, Building Societies and Credit Unions – compare your repayments and costs the easy way and remember: it’s in my interest to save YOU interest
I am often told that customers have gotten different figures when approaching the banks direct and when getting their borrowing capacity done on the same lender with different brokers.
It seems most bank estimates are on the low side. this is probably due to the bank’s (untrained?) staff not doing it properly by adding anticipated rental incomes etc.
On the other hand, some brokers seem to try to gain clients by getting their clients (or saying they can get) as much as possible and may even leave out little things (eg children, or credit cards) and/or exaggerate on the potential rental incomes of IPs, just to make the figure higher. (it is like some real estate agents exaggerating price to get a listing).
Get the person doing the calculation to tell you what they have included so that you can see if they have left anything out.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You must be logged in to reply to this topic. If you don't have an account, you can register here.
