When you’re screening a rental property, how do you estimate its DSCR before you ever talk to a lender? I usually start with the rent, subtract taxes, insurance, maintenance and vacancy to get an NOI estimate, then divide by the annual debt service on the loan amount I’m considering. But lenders seem to calculate it differently — some use market r…[Read more]

I am looking at my first investment property purchase here in Australia and I am trying to understand how lenders assess servicing for investment property loans. Do they typically count all of the expected rental income, or do they apply a discount to it? I am also curious how existing personal debts factor into the serviceability calculation. Any…[Read more]