Question for the Brokers

Hi,

Up until now I've always sourced funding directly from my local bank manager at the CBA. This has been fine until now but because of my offset account, they see me as a lot more indebted than I really am.

So, I was wondering if I need to get creative, or if I need to find a different bank to source my next loan.

I have an IP worth 575k with a 380k loan, returning $400/wk in rent in my name.
I have a joint loan worth 470k, offset by 250k. (my partner pays the interest on this since my half of the loan is completely off set)
My annual income is about 85k gross.

So at the end of the day, I break even on the IP and I don't pay interest on the other loan. Which mean my entire income is disposable.

To all you brokers out there, am I eligible for a loan, for how much and from which bank?

Thanks in advance for your time.
Gooram
 
Whether the loan is joint or not doesn't matter. When applying for a new loan the lender will take it that the entire repayments on the joint loan are yours. The funds in the off-set account wont be taken into account as you could spend them tomorrow.


Regards
Steve
 
yeah thanks guys, I'm actually well aware of that, and hence the reason for the thread.

Do I have any options in my current state, and if not, what would need to change? Pay down the loan with some or all of the offset funds?
 
There are a couple of lenders who only take your portion of the loan into account with a partner, but they will still discount the money in the offset account. Perhaps its time to re evaluate your joint loan? You could decide to club everything together under an umbrella type arrangement, which might help in the short term, but will also have the same issues down the track.
 
There are a couple of lenders who only take your portion of the loan into account with a partner, but they will still discount the money in the offset account. Perhaps its time to re evaluate your joint loan? You could decide to club everything together under an umbrella type arrangement, which might help in the short term, but will also have the same issues down the track.

Hi tobe,

Thanks for your reply, what do you mean by an umbrella arrangement? Can you briefly describe the pro's and con's that you allude to?

Thanks,
Gooram
 
Hi,

Up until now I've always sourced funding directly from my local bank manager at the CBA. This has been fine until now but because of my offset account, they see me as a lot more indebted than I really am.

So, I was wondering if I need to get creative, or if I need to find a different bank to source my next loan.

I have an IP worth 575k with a 380k loan, returning $400/wk in rent in my name.
I have a joint loan worth 470k, offset by 250k. (my partner pays the interest on this since my half of the loan is completely off set)
My annual income is about 85k gross.

So at the end of the day, I break even on the IP and I don't pay interest on the other loan. Which mean my entire income is disposable.

To all you brokers out there, am I eligible for a loan, for how much and from which bank?

Thanks in advance for your time.
Gooram

Hi gooram,

There are too many variables and not enough info, but you need a Mortgage Broker. There are plenty on this forum.

Personally, I would not put all of my eggs into one basket. Diversify your lenders as you would your portfolio.:)

Regards Jo
 
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