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  • Profile photo of eddieceddiec
    Member
    @eddiec
    Join Date: 2004
    Post Count: 113

    I just came back from speaking with the bank. I’m planning to invest jointly with a friend and I ask what the bank would look for in terms of approving our loan. He said he would look at whether we could afford the loan if there was no rent. Is this right? I mean, my financial model takes into account 45 weeks of rent to factor in those weeks when the property is untenanted. Without the rent, I most proabably wouldn’t be able to afford the cash flow. Is it normal for the bank to look for that?

    Profile photo of PropertyGuruPropertyGuru
    Participant
    @propertyguru
    Join Date: 2003
    Post Count: 1,502

    bank take 70-80% of rent as your income. which bank did you go to?

    Cheers
    PropertyGuRu [sultan]
    Mortgage Consultant
    [email protected]
    MSN ID: amitash, Yahoo Id: bornguru

    NZ loan pre approval from OZ in 48 hours

    Profile photo of eddieceddiec
    Member
    @eddiec
    Join Date: 2004
    Post Count: 113

    Went to the NAB since I have everything with them… bad idea?

    Profile photo of SydneysiderSydneysider
    Member
    @sydneysider
    Join Date: 2003
    Post Count: 3

    Brokers usually have access to many lenders on their panels which include all major banks and lenders. Each bank has its own lending criteria, that is why brokers have their calculators on their computer and can check which banks will lend you money and how much.

    <Trawling – Derek>

    Sydneysider

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    Some banks are fairly inflexible – especially ones starting with N.

    Terryw
    Discover Home Loans
    Mortgage Broker
    North Sydney
    Click below to email me

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of eddieceddiec
    Member
    @eddiec
    Join Date: 2004
    Post Count: 113

    Thanks for that guys. Makes me feel much better!

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