refinance IP loan with overseas income?

[donkey]

The debt on my current IP is leveraged to one of the big 4 banks- for the last 12 yrs interest only thus far. I owe 190k and conservative estimate of sale value on house is 550k.

I receive $525 per week rent from the IP and have no other debts in oz. I have a couple of credit cards with big limits but can reduce them prior to refinancing.

I live abroad and earn the equivalent of $1000 a month. Can prove this with bank book and work contract.

I want to refinance to remove old garage and construct new one $20k and purchase 10k worth of dividend producing equity shares ( and thus claim tax deduction for this).

I am aged in early 40's.

I have savings in bank and this is my other source of income which can be proven. ($1300 a month interest earnt per month).

Can any NSW based mortgage brokers please advise if its likely a bank would approve refinance + additional funds (total loan $220k) based on the rental income, interest income and overseas income?

I want to borrow the 30k addtional funds to reduce my tax bill each yr.

Also, if I proceed... does the bank have reporting rules to ATO re my overseas income. I currently dont mention this on my tax returns.

thanks

 

[Shahin_Afarin]

Whats the currency?

Are you PAYG or self employed?

Who is the current bank?

 

[Peter_Tersteeg]

If you're and Australian citizen living overseas it's not that difficult to qualify for a loan in Australia. It usually comes down to the currency you're paid in and being able to prove it.

Lenders are generally unwilling to lend against the Zimbabwe dollar, it's too unstable. US, Pound, Euro, Yen, Singapore or Malaysian dollars, Chinese Yuan are all fine (plenty more where that came from, these are just the currencies I immediately recall writing loans against).

Proving it can be a bit more difficult. A combination of payslips, employment letter and most importantly verifying it's deposited regularly into a bank account goes a long way. Tax returns if you're self employed but this is very tricky.

Beyond that, it's just a matter of choosing the right lender and knowing how to present the information so the lender is willing to accept it.

 

[donkey]

Whats the currency?

Are you PAYG or self employed?

Who is the current bank?

Im self employed and have ABN but no turnover on the abn last tax return. Only the rental income and interest income. Im paying $540 quarterly tax to the ATO in advance.

currently its with CBA.

I suppose Im interested to know if any brokers can punch the numbers based on my income to ascertain if I could refinance or not.

thanks

 

[donkey]

Im self employed and have ABN but no turnover on the abn last tax return. Only the rental income and interest income. Im paying $540 quarterly tax to the ATO in advance.

currently its with CBA.

I suppose Im interested to know if any brokers can punch the numbers based on my income to ascertain if I could refinance or not.

thanks

currency is thai baht

 

[Shahin_Afarin]

A bit hard to calculate things when you have half of the info but here are some points:

1. Stick with CBA
2. Won't be able to use the thai income
3. You need to use the savings income and this will get it across the line. If its in a CBA account then this is excellent. CBA is excellent in this space and one of the reasons I would stick with CBA.

 

[remingbi]

using overseas income

Hi donkey

funny u ask about that

I have a friend that is in the similar situation, as a lot if her friends
I am not chinese but she is(although my username is remingbi. haha)
The word is that all of them are using west pac with r their brokers, to declare their foreign income because if the info is presented well, the loans can proceed much easier compared to the other majors

give ma a yell if u want to know more


cheers

 

[Terry_w]

Hi donkey

funny u ask about that

I have a friend that is in the similar situation, as a lot if her friends
I am not chinese but she is(although my username is remingbi. haha)
The word is that all of them are using west pac with r their brokers, to declare their foreign income because if the info is presented well, the loans can proceed much easier compared to the other majors

give ma a yell if u want to know more


cheers

Shouldn't your name be Renminbi? 人民币

 

[Terry_w]

currency is thai baht

ไม่มีใครอยากจะให้ยืมเวลาได้รับเงินบาท

 

[Shahin_Afarin]

Hi donkey

funny u ask about that

I have a friend that is in the similar situation, as a lot if her friends
I am not chinese but she is(although my username is remingbi. haha)
The word is that all of them are using west pac with r their brokers, to declare their foreign income because if the info is presented well, the loans can proceed much easier compared to the other majors

give ma a yell if u want to know more


cheers

1. CBA do 95% LVR versus Westpac 80% LVR
2. CBA ask for less documentation - i.e. payslips and salary credits versus Westpac which ask for employer letter, payslips and salary credits

Westpac accepts a more variety of currencies including Thai but you will need to provide fully translated 2 years financials.

Once you tackle that issue - you then have the Westpac policy of 50% rent reliance so that's going to be a bit of an unbreakable brick wall for the OP.

 

[remingbi]

sorry terry
you're right
spelt it wrong

 

[donkey]

1. CBA do 95% LVR versus Westpac 80% LVR
2. CBA ask for less documentation - i.e. payslips and salary credits versus Westpac which ask for employer letter, payslips and salary credits

Westpac accepts a more variety of currencies including Thai but you will need to provide fully translated 2 years financials.

Once you tackle that issue - you then have the Westpac policy of 50% rent reliance so that's going to be a bit of an unbreakable brick wall for the OP.

what do you mean 'westpac policy of 50% rent reliance. Does it mean that in the application they will only consider 50% of the rent re serviceability of the proposed loan?

 

[Shahin_Afarin]

Westpac has a policy whereby if more than 50% of your total income is made up of rent - then they deem you to be rent reliant. Over 80% is a no goer and 80% requires credit approval.

Application would need to be rock solid for credit to approve. Thai income isn't going to cut it.

 

[Rolf Latham]

Westpac has a policy whereby if more than 50% of your total income is made up of rent - then they deem you to be rent reliant. Over 80% is a no goer and 80% requires credit approval.

Its worse : )

its based on nett PAYG income and 80% on rental income.

So a borrower with a very neg geared portfolio will sneak through, but those with the same exposure and same over all profile who are neutral to positive will be declined.

Sensible isnt it : )

ta
rolf

 

[Shahin_Afarin]

Their rental reliance policy is like farting in an elevator - its just not needed

 

[albanga]

Their rental reliance policy is like farting in an elevator - its just not needed

First use of a fart analogy I have read in somersoft, well played.

 

[donkey]

1. CBA do 95% LVR versus Westpac 80% LVR
2. CBA ask for less documentation - i.e. payslips and salary credits versus Westpac which ask for employer letter, payslips and salary credits

Westpac accepts a more variety of currencies including Thai but you will need to provide fully translated 2 years financials.

Once you tackle that issue - you then have the Westpac policy of 50% rent reliance so that's going to be a bit of an unbreakable brick wall for the OP.

does CBA accept thai baht as a currency to prove income?

 

[Shahin_Afarin]

No they don't.