Would anyone know which banks take rental income into consideration, NOT the usual 80% or 75% BUT 90%-100% . Would be great help thanks
I am also keen to know the answer on that
If they are taking the property as security then the answer is simple – NONE.
Rent however is only 1 small portion of serviceability and a lender that takes 75% may end up lending you more than someone who takes 90% because of the other factors that have a bearing on your borrowing amount.
Richard Taylor | Australia's leading private lender
This is ridiculous, i know for a fact i can service this next property but so far i cannot get the amount i want from them. If i open an ABN i have to wait some time before they look at that as income right? Hmm if i get someone with an ABN to write that i have been getting paid X amount for the last year, would they take that in consideration?
If you can produce payslips and a Group Certificate you can have that income considered but getting someone to write a letter stating you earn a particular amount when you dont is mortgage fraud.
Hard of course to commend why you cant get the loan without any information.
The reason lenders dont take 100% of the rent into consideration is that even if you self manage you wil never receive 100% of the Gross rental. Expenses such as Rates, insurance, vacancy get eaten into the Gross profit.
Richard Taylor | Australia's leading private lender
Banks such as ANZ will give you addbacks, although assessing your rental at 75%, they understand negative gearing returns cash to your pocket.
This frustrates me with the banks. I can understand their viewpoint though. If I was a lender I would never take 100% of the rental income into account. As Richard said, rates, water and a whole bunch of other things (vacancies, management fees, maintenance, insurance etc) all have to be paid for out of the rent. For a lender to take 100% would be silly.
It would be nice if they did, but they don’t and I doubt they ever will.
Ryan McLean | On Property
http://onproperty.com.au
Email MeFurther more as Number 8 mentioned certain lenders will add back the negative gearing others will take the actual loan repayment on external loans without applying the serviceability rate of interest to these liabilities.
Richard Taylor | Australia's leading private lender
Further more as Number 8 mentioned certain lenders will add back the negative gearing others will take the actual loan repayment on external loans without applying the serviceability rate of interest to these liabilities.
Richard Taylor | Australia's leading private lender
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