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From: Mike .
Westpac Loan Interview
From: BGR
Date: 06 Nov 2000
Time: 20:14:59
Hi All,
I had an interesting loan application interview with Westpac today seeking finance for a second IP. I was surprised to say the least when I learnt they do not take into account any neg. gearing tax benefits as they cannot guarantee the Gov't won't change the rules! I was also told they will only take 70% of rental income into account.
90% I could understand, but 70%??? This apparently is because they do not want a high dependancy on rental income. I had calculated I would be up for about 15% tax for the year on a salary of around 63K and with an existing property only costing me about $5 per week on the PIA. The suggested property was only $80k with a rent of $125. All this counted for nothing though. Is this normal philosophy, or did I get a dud interviewer?
BGR
Westpac Loan Interview
From: BGR
Date: 06 Nov 2000
Time: 20:14:59
Hi All,
I had an interesting loan application interview with Westpac today seeking finance for a second IP. I was surprised to say the least when I learnt they do not take into account any neg. gearing tax benefits as they cannot guarantee the Gov't won't change the rules! I was also told they will only take 70% of rental income into account.
90% I could understand, but 70%??? This apparently is because they do not want a high dependancy on rental income. I had calculated I would be up for about 15% tax for the year on a salary of around 63K and with an existing property only costing me about $5 per week on the PIA. The suggested property was only $80k with a rent of $125. All this counted for nothing though. Is this normal philosophy, or did I get a dud interviewer?
BGR
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