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  • Profile photo of TheFinanceShopTheFinanceShop
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    @thefinanceshop
    Join Date: 2012
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    Don’t get me wrong though Macquarie has improved massively over the last few months and they are very easy to to business with.

    TheFinanceShop | Elite Property Finance
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    Profile photo of jcso99jcso99
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    @jcso99
    Join Date: 2005
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    Thanks all for your help. In a nutshell, I should be speaking with more mortgage brokers but from reading the post, it seems NAB and Macquarie might be my better options at this stage. Cheers John

    Profile photo of Finance BrokerFinance Broker
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    @kathlenee
    Join Date: 2014
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    I’ve just spoken to Macquarie and got confirmation that they will consider foreign income. Payslips, bank statements and tax returns will be needed to confirm whether it is acceptable and as i mentioned before strength of the overall deal. Since you are planning to stay within 80% LVR, John, I would recommend Macquarie as an option for you to consider.

    CBA will only use 80% of CNY income for australian citizens and it will not be considered under DUA. Still I’m not ruling it out as an option again depending on strength of the deal.

    In this situation you are not looking to go into LMI territory so you do have options at the moment. You will need to be structured very carefully to help you reach your goal John. And mistakes will limit your options.

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    Profile photo of jcso99jcso99
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    @jcso99
    Join Date: 2005
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    I just have done some quick calculation, my rental income constitutes about 35% of total income but AMP, through my mortgage broker, is saying that I have serviceability issue, which i don’t understand. In total, my IPs are yielding at average 7.5% gross and they are located in metropolitan/regional cities and none of them are in mining towns. Would truly appreciate if somebody can shed some light?

    Profile photo of Colin RiceColin Rice
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    @fms
    Join Date: 2011
    Post Count: 338

    Hi jcso99,

    Serviceability will comprise of rental income plus any other income usually from salary or business income.

    Rental income plus salary/business income minus living expenses, tax, credit cards (2.5 -3% of limit), car repayments, personal loans, child maintenance etc will leave you with a net surplus.

    If the net surplus is less than what the calculator requires to service the requested loan amount in the bank calculator (usually actual rate plus 1.5 – 3% buffer) then the deal wont service.

    Has your broker looked at other lenders such as NAB/HSL that will service at actual repayments with out adding a buffer?

    Colin Rice | CDR Finance
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    Profile photo of jcso99jcso99
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    @jcso99
    Join Date: 2005
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    Hi Colin,

    The net surplus should also minus the existing loan repayments right? Secondly, are you saying that with AMP, they will add a 3% buffer to the current variable rate to calculate serviceability? Cheers John

    Profile photo of Colin RiceColin Rice
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    @fms
    Join Date: 2011
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    Hi Colin,

    The net surplus should also minus the existing loan repayments right? Secondly, are you saying that with AMP, they will add a 3% buffer to the current variable rate to calculate serviceability? Cheers John

    Yep that’s correct.

    AMP assessment rate is 7.5% where as the same loans will be calculated at actual rate via NAB calculator at actual repayments. For example 5% interest only payments which can and does make all the difference in many instances.

    To clarify I’m not recommending NAB as other banks have the same policy it is just an example and may or may not be the best for for your situation without knowing the full picture and future goals etc.

    Colin Rice | CDR Finance
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    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of jcso99jcso99
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    @jcso99
    Join Date: 2005
    Post Count: 95

    Thanks Colin, I have just sent you a private message regarding my current situation.

    Profile photo of Mick CMick C
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    @shape
    Join Date: 2010
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    Macquarie has changed their credit policy at least 4 times in the last 2 years…major changes ( some good and some bad changes) and yes they have been very easy to deal with for the last 6 month especially with some of their cash out niches and no bank statement policy.

    Generally speaking Macq is not known to take on foreign income it’s even in their policy book- but they are known as a “case by case” lender as they can place some of the strong deals on their “balance sheet” under their own funding. They are definitely trying hard to win deals since they left the broker industry a few years back.

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    Profile photo of Finance BrokerFinance Broker
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    @kathlenee
    Join Date: 2014
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    AMP does take actual repayments into account. I would say there could be other things that could affect your servicing at AMP. Like postcode of the property. If it is in high density or regional areas you could be looking at less rental income taken into account sometimes only 50% is acceptable. This could affect you with any bank however so you wont necessarily be able to fix this by going to another bank.

    There’s nothing wrong with Macq trying to win business now. They may have failed brokers in the past but the deals they are offering are good for clients now. So there’s no reason for the client, in this case John, to stay away from them.

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    Profile photo of Colin RiceColin Rice
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    @fms
    Join Date: 2011
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    AMP does take actual repayments into account.

    Actual of other banks debt but debt with AMP is sensitised at 7.5% currently.

    • This reply was modified 8 years, 8 months ago by Profile photo of Colin Rice Colin Rice. Reason: spelling

    Colin Rice | CDR Finance
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    Profile photo of Jamie MooreJamie Moore
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    Join Date: 2010
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    Thanks Colin, I have just sent you a private message regarding my current situation.

    Hi

    Looks like you accidentally sent it to me.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Finance BrokerFinance Broker
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    @kathlenee
    Join Date: 2014
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    AMP assessment rate is 7.5% where as the same loans will be calculated at actual rate via NAB calculator at actual repayments. For example 5% interest only payments which can and does make all the difference in many instances.

    Yes that’s right but so will Macquarie.

    Finance Broker
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    Profile photo of Colin RiceColin Rice
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    @fms
    Join Date: 2011
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    <div class=”d4p-bbt-quote-title”>Colin Rice wrote:</div>
    AMP assessment rate is 7.5% where as the same loans will be calculated at actual rate via NAB calculator at actual repayments. For example 5% interest only payments which can and does make all the difference in many instances.

    Yes that’s right but so will Macquarie.

    Yep, the banks that allow that apply the same policy.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
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    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of jcso99jcso99
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    @jcso99
    Join Date: 2005
    Post Count: 95

    Thanks all for your feedback.

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