How would you expect a bank to calculate servicabilty for "person A" where Person A owns half an IP with Person B?
A certain bank beginning wth the letter 'W' endng in 'C' does t like this.
The bank takes into consideration 75% of 50% of the rental income.
The bank counts 100% of the loan of the existing IP loan as a liability for "person A". This effectively means the bank is counting 37.5% of the income for the existing IP against the full loan for "person A".
This severly impedes future borrowing for "person A" and "person B"
How do other banks calculate servicability aganst jointly owned properties?
A certain bank beginning wth the letter 'W' endng in 'C' does t like this.
The bank takes into consideration 75% of 50% of the rental income.
The bank counts 100% of the loan of the existing IP loan as a liability for "person A". This effectively means the bank is counting 37.5% of the income for the existing IP against the full loan for "person A".
This severly impedes future borrowing for "person A" and "person B"
How do other banks calculate servicability aganst jointly owned properties?