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?
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: bornguruNZ loan pre approval from OZ in 48 hours
Went to the NAB since I have everything with them… bad idea?
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
Some banks are fairly inflexible – especially ones starting with N.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Thanks for that guys. Makes me feel much better!
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