Hi again, I just have a question about applying for an IP loan.
How much of the supposed rental income would they take into condsideration when calculating how much they will lend you?
With normal work income, they will let you pay around 30-33% back into the mortgage, right? Well, how does it work with the rental income…?
One person told me that they will accept a certain yield percentage, which changes with market conditions…
eg: In the current market, the lender may allow you to repay 3% of the valuation of the house as rental income (even if you might be receiving 4.5% or something).
If this is off track (or completely wrong), please let me know!!
Much appreciated,
Steve.“Knowledge is Power”
Actually, i’ve just read the post on “loan servicability” a few back. Thanks anyways!
“Knowledge is Power”
Yes, they generally only want to take into account a low yield for rental income. You may find somethign giving you a 10% yield, but the lender may only take a 4% yield into account (and then only 80% of this). Bastards
Terryw
Discover Home Loans
North Sydney
[email protected]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
Hey young, wheres this “loan servicability”?
I have the same question too..
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