I have 2 negatively geared properties to service. My repayments are at 10% of my net income. If I wanted to apply for another loan is there a rule of thumb limit for repayments, as a % of net income, the banks wont lend beyond?
very generally.
80% of rental income, and
30% of salary
must be greater than repayments of all loans.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
Terryw wrote:very generally.
80% of rental income, and
30% of salary
must be greater than repayments of all loans.Thanks for your responseTerryw
Terryw wrote:very generally.
80% of rental income, and
30% of salary
must be greater than repayments of all loans.You having broker pangs Terry?
Just can't keep the broker out of the lawyer can you
Yes, I miss being a broker!
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
Terryw wrote:very generally.
80% of rental income, and
30% of salary
must be greater than repayments of all loans.Just confirming that it is 30% of gross (before tax) salary
Yes.
But this is a very rough guide.
Another rule of thumb is 5 times annual income = borrowing cap
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
Oh Terry under NCPP being a Broker is like standing in a downpour without an umbrella.
If the reems of paper work doesnt get you the ongoing compliance will.
Thankfully finding and Broking European properties doesnt require so much time / paper.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Not totally off topic….recently a friend was told by her MB that he now charged $350 for all new loans. (NSW) Is this common practice now?
Lalibella wrote:Not totally off topic….recently a friend was told by her MB that he now charged $350 for all new loans. (NSW) Is this common practice now?Some brokers are switching to a fee for service model. There are number of reasons behind it – particularly the reduction in commission from lenders coupled with the removal of DEF.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Qlds007 wrote:Oh Terry under NCPP being a Broker is like standing in a downpour without an umbrella.If the reems of paper work doesnt get you the ongoing compliance will.
Thankfully finding and Broking European properties doesnt require so much time / paper.
Cheers
Yours in Finance
Tell me about it….and it's only going to get worse.
I guess it helps weed out the dodgy characters and probably makes entering the industry less attractive to newcomers since the barriers to entry have increased.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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