Loan serviceability

Viewing 6 posts - 1 through 6 (of 6 total)

Chris-Syd
Participant
@chris-syd
Join Date: 2003
Post Count: 75
October 7, 2003 - 12:11 pm
Has anyone else had a problem with loan servicability when applying for a loan?
Most banks and mortgage lends will only do 35% of income for loan servicing.
I am currently at 55% but am single and paying off a PPOR and a -VE property. I want to get a loan to purchase a +VE property but this will only bring me to 45% debt to income loan servicing.
Anyone got any ideas?
Chris
All post are IMHO.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
October 7, 2003 - 1:19 pm
Hi Chris
Thsi happens to most people sooner or later. Some banks are more lenient than others (Westpac is pretty good). Not all use the same figures when calculating. eg some add margins on the interest rates (a buffer), others assume PI loans, others assume higher monthly expenses etc. So shopping around helps.
Some people also get around this by using low docs or no docs. Do you have much of a deposit?
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
October 7, 2003 - 1:19 pm
Hi Chris
Thsi happens to most people sooner or later. Some banks are more lenient than others (Westpac is pretty good). Not all use the same figures when calculating. eg some add margins on the interest rates (a buffer), others assume PI loans, others assume higher monthly expenses etc. So shopping around helps.
Some people also get around this by using low docs or no docs. Do you have much of a deposit/equity?
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
October 8, 2003 - 12:47 am
Chris
Either myself, Terry or any of the other brokers on the forum are always happy to crunch some figures for you
Cheers Richard
[email protected]
There is no such thing as a problem.
Just a solution waiting to be found
Richard Taylor | Australia's leading private lender
Administrator
Keymaster
@piadmin
Join Date: 2013
Post Count: 3,225
October 8, 2003 - 1:37 pm
Hi Richard & Terry, Do banks recognise income from dividend if say we had 150k worth of bank shares? If so would they need to securitise those shares? Regards, Jim.
xyzzy
Participant
@xyzzy
Join Date: 2003
Post Count: 178
October 8, 2003 - 9:48 pm
Many stockbrokers and other financiers will lend against the shares up to 70% of their market value and take the shares as collateral.
Financiers regard my dividends as income especially if it is income from the bank doing the finance!