Calculating DSR with P&I

From: Marina .


Hi everyone,

My banker just called to say we cannot access the equity due to non-servicability.

The reason she says is BASED ON PRINCIPLE AND INTEREST YOU CANNOT SERVICE THE LOANS.


Well I said if you calculate using INTEREST ONLY, you will see that WE CAN.

She said this is the way we do it and that is that.

3 OF OUR PROPERTIES ARE CASH FLOW POSITIVE, WE HAVE NO PERSONAL MORTGAGE OR CAR LOANS.
I have done my calculations and all is fine.

So can anyone recommend what we can do now, or can anyone recommend someone else from CBA that I can talk to.

Her calculations are utter stupidity.

I already have loans with Nab and they take into account repayments at INTEREST ONLY.

Thanks
 
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Reply: 1
From: Rolf Latham


Hi Marina

Them's the rules most lenders apply including the CBA. Worse still CBA calculate their LOC serviceability on a 20 year P&I basis.

You really need to sit down with someone that will explain the models the lenders use so that you can use the ones that suit your future needs. Generally, but not always, Suncorp, Westpac, St George and Adelaide will lend more than CBA.

At the edge of the envelope as the lender sees it each situation is unique.

Ta

Rolf
 
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