Borrowing Capacity
- Thread starter digs75
- Start date
The fairly large discrepency is not suprising given that lenders all calculate serviceability on a different formula.
Dont bother with any online calculators as they seem to ignore half the important information required.
Without any actual numbers it is impossible to provide any structured comment.
Dont bother with any online calculators as they seem to ignore half the important information required.
Without any actual numbers it is impossible to provide any structured comment.
Yes, a good mortgage broker!
These online calculators are next to useless as Richard said and I'd go so far as to say, that they are there for marketing purposes only.
ToBe
Surely not the Old "bait and switch"
ta
rolf
Surely not the Old "bait and switch"
ta
rolf
I'm a broker and when working out customers borrowing capacity my preference is to use CBA's calc. The reason being is that it is quite conservative and certainly doesn't let people get into trouble. It has more appropriate living expenses for people living in capital cities. So it is great at working out how much people SHOULD borrow, not how much they CAN borrow.
If you want to maximise your borrowing capacity then speak to a broker and they can use their software or manually work out which lender is best.
We usually request to see people's payslips, group certificates and debt statements before working out how much they can borrow. This is because the way lenders assess your income may be completely different to what you consider your income to be.
If you want to maximise your borrowing capacity then speak to a broker and they can use their software or manually work out which lender is best.
We usually request to see people's payslips, group certificates and debt statements before working out how much they can borrow. This is because the way lenders assess your income may be completely different to what you consider your income to be.
HLE, I think you'll find over time CBA and the other lenders will tweak their calculators to dial up or down volumes, and your rule of thumb wont work anymore.
notwithstanding the fact what they can borrow and what they can afford to boroow for property investors is a slightly diferent fish to FHB's or upgraders etc.
notwithstanding the fact what they can borrow and what they can afford to boroow for property investors is a slightly diferent fish to FHB's or upgraders etc.
So what happens when a CBA client checks their serviceability on the Banks online calculator and realises he cant borrow the extra $100K for his new home.
He calls the Bank and decides to refinance because another lender has a better serviceability formula meaning he can borrow the extra.
The retention team say oh i am sure we can match that and do the deal anyway even though his Broker has had it declined by Credit thru the Broker channel.
Online calculators make me laugh as they are an absolute waste of everyones time and as already been mentioned are merely a sales tool to get the phones to ring.
Oh by the way we are now offered 1.9% fixed rates for 5 years. (Only kidding please please dont ring we cant keep up with the volumes as it is).
He calls the Bank and decides to refinance because another lender has a better serviceability formula meaning he can borrow the extra.
The retention team say oh i am sure we can match that and do the deal anyway even though his Broker has had it declined by Credit thru the Broker channel.
Online calculators make me laugh as they are an absolute waste of everyones time and as already been mentioned are merely a sales tool to get the phones to ring.
Oh by the way we are now offered 1.9% fixed rates for 5 years. (Only kidding please please dont ring we cant keep up with the volumes as it is).
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