From: Gee Vee

My brother recently went in to St George bank armed with all his home work and calculations based on PIA and assets and liabilities DSR according to the latest book, but they didnt even look at it.
They say he hasnt enough income to service his level of debt. Does any one know how these individual banks calculate DSR?
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Reply: 1
From: Stirling Reid

Check that you are both working in per month or per week. It is easy for them to get confused.
Check with another branch. I have had some assessments from the CBA knocked back because they did not know what they were talking about. They insisted that they use the same formula Australia wide but this assumes they punch in the right inputs.
Some branches don't punch in the right inputs.
Ask them what formula they are using.

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Reply: 2
From: Glenn Mott

After refinancing recently, I came to the conclusion that the person that I was speaking to was a bank lender with no idea of property investment or the software he was using. It didn't make him a bad person, just a person not capable of efficiently doing his job (you dont need to be an investor to be a lender).

I had to constantly correct him and prompt him to enter the information correctly, explaining the basic concepts of renting property.

Don't be afraid to correct these staff if you are not getting the answer you want.

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Reply: 2.1
From: John P

I suppose if I was earning the wages they were on, I would probably be doing the same thing.... Their wages are insulting!!!!


"Australia your chicken is ready"
Red Rooster
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Reply: 3
From: Rolf Latham

Hi Gough

Tus simple really, all lender use slightly and sometimes vastly different service models.

DSR in most instances means little since you can get loans through with DSRs in the 50 and 60 %s if set up the right way, and there is cashflow.

Find yourself an independent broker you are comfortable with. He/She will save you time and make you money.


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Reply: 3.1
From: Gee Vee

Thanks to you all for taking the time to reply to this post.
In fact I have spoken to a Property Investor who ran into a similar problem and instead of dealing with the local branch, he now deals with the same bank but it's main branch and he gets stuff through that the locals wouldn't touch!!
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