Loan serviceability

[jon2378]

So i spoke with a mortgage broker from Westpac today. He told me that I didn't have sufficient income to service the loan I proposed. I even offered to secure it against sufficient equity to make it 50% LVR, and he said it didn't matter - post global financial crisis, if u don't have enough income, LVR is meaningless. He said there was no point looking elsewhere for a loan, all banks work under the same scheme.

Is this true? I've read posts from brokers on here claiming that LVR is the only restriction to borrowing capacity.

Whats going on here, was I lied to by the broker? Is there some truth to what he's saying, just that there are ways to get around it?

 

[pinkboy]

You spoke to an in house loan officer at Wesuck, not an independent Mortgage Broker.

Find a MB that has multiple lender options.

pinkboy

 

[Terry_w]

No it is not true (= lie).

Each bank has different criteria - however westpac is one of the more generous lenders in terms of servicing.

 

[Rixter]

Banks/Lenders loan funds under 2 modules - LVR & DSR.

You must meet both modules .

Different banks/lenders have different methods of calculating DSR.

I strongly suggest you run your situation past an IP savy broker to find out your options available.

I hope this helps.

 

[Jamie M]

SHe said there was no point looking elsewhere for a loan, all banks work under the same scheme.

Not true at all.

Each banks assesses borrowing capacity differently. The banker is either telling porkies or she just doesn't know better.

Cheers

Jamie

 

[Corey Batt]

Completely untrue, and sounds like you talked to a WBC staff member than a true broker. Have a chat with a broker and you should be able to have your situation properly assessed - you'll no doubt have a better result.

 

[impala67]

...just doesn't know better...

Very likely

 

[Peter_Tersteeg]

I've read posts from brokers on here claiming that LVR is the only restriction to borrowing capacity.

You're read wrong. The LVR is important, but the main restriction to borrowing capacity is your ability to afford the loan and this comes primarily from income and cash flow.

As others have indicated, you haven't spoken to a broker, just a Westpac employee. This person is highly unlikely to have any clue at all about how other lenders assess loan eligibility.

Westpac is a reasonably generous lender but they're along way from the most generous.

You're in Adelaide, you should have a discussion with CJay.

 

[Rolf Latham]

So i spoke with a mortgage broker from Westpac today.

clearly, there is a deal there.

contact any one of the brokers above that have responded and I fully expect that not only can you get the current scenario "done", but even more.

The WBC person isnt lying or trying to mislead you. Like most people,they dont know what they dont know.



ta

rolf

 

[Brady]

clearly, there is a deal there.

contact any one of the brokers above that have responded and I fully expect that not only can you get the current scenario "done", but even more.

The WBC person isnt lying or trying to mislead you. Like most people,they dont know what they dont know.



ta

rolf

Umm.... Have I missed something here?

Have you been PM'd some some info?

You expect it can be "done"? Based on what???

Sorry all good to say a broker might be able to provide some different options but come on Rolf.


Rixter's post nailed it.

 

[Rolf Latham]

Umm.... Have I missed something here?

WBC serviceablity is about the same as CBA

lower quartile to maybe lower one 3rd of other lenders

run a say a NAB AMP ABL choicelend Macq service calc next to wbc with a borrower with an IP or 2 and you will see its clear as day


ta
rolf

 

[D.T.]

Whats going on here, was I lied to by the broker? Is there some truth to what he's saying, just that there are ways to get around it?

So an employee of a business suggested you don't go to competitor's businesses?

 

[Brady]

WBC serviceablity is about the same as CBA

lower quartile to maybe lower one 3rd of other lenders

run a say a NAB AMP ABL choicelend Macq service calc next to wbc with a borrower with an IP or 2 and you will see its clear as day


ta
rolf

And your point being?

He hasn't even mentioned any income at all.


I'll say again Rixter's post summed it up perfectly.

 

[Rolf Latham]

And your point being?

He hasn't even mentioned any income at all.

.

doesnt need specifics.

same maths logic applies

if income is X

and WBC says no

95% likely higher serviceability lenders will say yes on the same income X

Caveat obviously if the poster is on benefits then Im way out.

ta
rolf

 

[Brady]

If x isn't enough to service on any lenders DSR not going to get anything. You need to know more info to know if it is a deal and can be done...

Nice stat.

 

[Rolf Latham]

If x isn't enough to service on any lenders DSR not going to get anything. You need to know more info to know if it is a deal and can be done...

Nice stat.

you are correct

I need to amend my post. Jon may be on Centrelink.
( though intution says otherwise, since Jon would not have fronted his existing lender with centrelink income - assumption)


so.............

the serviceability for lender Y over WBC is 1.8 times better for a typical portfolio investor

ta
rolf

 

[Jamie M]

As Rolf alluded to, look at using a lender that takes into account the "actual" repayments from existing loans rather than an inflated repayment based on their own in-house assessment rate. This will improve your borrowing capacity by a lot.

Give Cjay a buzz and see if he can make it work.

Cheers

Jamie

 

[Marty McDonald]

If x isn't enough to service on any lenders DSR not going to get anything. You need to know more info to know if it is a deal and can be done...

Nice stat.

I agree with Brady far too little data to be saying can work. He may have no income at all besides rental which actually sounds likely from the OP to me.