I am currnetly earning a pretty average salary (just under 40K pa) and am currently building my PPOR with my partner. As such servicability for IP loan/s is an issue. I am interested in wraps for +CF to help my situation. I know banks dont love lending for a wrap but my question is: If a bank IS prepared to lend for a wrap and I can provide to them the details of potential wrap showing +CF, would they be more comfortable lending to me knowing that servicability will be much less of an issue?
Thanks
MikeCAlways Ready.
Mike
it is not a matter of serviceability that lenders have an issue with wrapping more importantly the issue with the wrappee making payment to the wrappee and then the wrapper not making payment to his lender.
Protection of a caveat or not if the loan isnt paid the Bank will have the right to take possession and sell the property.
When we started in 1996 the major Bank we approached had never heard of Installment contracts or LTO and we had to hold their hand and guide them through. They took an assessed rental income rather than installment receipts as income to assess the loans.
This worked fine for the first dozen or so but in 2003 when it reached 187 loans they had to take the installment contract income to show some form of serviceability.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
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