THis is a really really genenral question as every bank is different, but does anyone know roughly what % of a second income banks use when assessing applications.
For my own rough workings of whether a loan lokks like it would be approved, I usually use 30% on the first income, however if there's a second party involved in this application (a partner), what % does a bank look at of the second income.
Like I said this is very general as I know every bank is differnt (we're currently with Colonial, if that helps), jsut looking for a genenral answer so we have a bit of an idea that finance is possible before seeing the bank.
Thanks
Same.
I generally make a quick calculation of estimating borrowing capacity by multiplying annual incomes (of both borrowers) by 5 or 6.
very rough tho.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
See how the market has changed.
When i first started out in the industry in the 80's in the UK it was 3 x the main income + 1 x secondary income.
The odd lender did 2.5 x Joint income however that was an exception.As Terry mentioned some years the figure has increased however varies from lender to lender as has been pointed out.
Richard Taylor | Australia's leading private lender
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