Increase borrowing capacity

Don’t get me wrong though Macquarie has improved massively over the last few months and they are very easy to to business with.

I’ve just spoken to Macquarie and got confirmation that they will consider foreign income. Payslips, bank statements and tax returns will be needed to confirm whether it is acceptable and as i mentioned before strength of the overall deal. Since you are planning to stay within 80% LVR, John, I would recommend Macquarie as an option for you to consider.

CBA will only use 80% of CNY income for australian citizens and it will not be considered under DUA. Still I’m not ruling it out as an option again depending on strength of the deal.

In this situation you are not looking to go into LMI territory so you do have options at the moment. You will need to be structured very carefully to help you reach your goal John. And mistakes will limit your options.

Hi jcso99,

Serviceability will comprise of rental income plus any other income usually from salary or business income.

Rental income plus salary/business income minus living expenses, tax, credit cards (2.5 -3% of limit), car repayments, personal loans, child maintenance etc will leave you with a net surplus.

If the net surplus is less than what the calculator requires to service the requested loan amount in the bank calculator (usually actual rate plus 1.5 – 3% buffer) then the deal wont service.

Has your broker looked at other lenders such as NAB/HSL that will service at actual repayments with out adding a buffer?

jcso99 wrote:

Hi Colin,

The net surplus should also minus the existing loan repayments right? Secondly, are you saying that with AMP, they will add a 3% buffer to the current variable rate to calculate serviceability? Cheers John

Yep that’s correct.

AMP assessment rate is 7.5% where as the same loans will be calculated at actual rate via NAB calculator at actual repayments. For example 5% interest only payments which can and does make all the difference in many instances.

To clarify I’m not recommending NAB as other banks have the same policy it is just an example and may or may not be the best for for your situation without knowing the full picture and future goals etc.

Macquarie has changed their credit policy at least 4 times in the last 2 years…major changes ( some good and some bad changes) and yes they have been very easy to deal with for the last 6 month especially with some of their cash out niches and no bank statement policy.

Generally speaking Macq is not known to take on foreign income it’s even in their policy book- but they are known as a “case by case” lender as they can place some of the strong deals on their “balance sheet” under their own funding. They are definitely trying hard to win deals since they left the broker industry a few years back.

Finance Broker wrote:

AMP does take actual repayments into account.

Actual of other banks debt but debt with AMP is sensitised at 7.5% currently.

• This reply was modified 10 years, 6 months ago by  Colin Rice. Reason: spelling

Colin Rice wrote:

AMP assessment rate is 7.5% where as the same loans will be calculated at actual rate via NAB calculator at actual repayments. For example 5% interest only payments which can and does make all the difference in many instances.

Yes that’s right but so will Macquarie.