What happens if current lender no longer likes my serviceability?

[CAMI]

Thanks Aaron,
Would love someone to check Homeside serviceability now. You are very kind.
Fortnightly Gross Salary: $2078
Rent from Homeside House $360 weekly, Loans $281,000 (including $11,000 they want us to pay out to release land). Monthly payments $1530
Value of house $300,000 (90% LVR, so need to reduce loans to $170,000)
Rent from Westpac House $380 weekly. Loans $310,000 Monthly payments $1500, House value $340,000
Land Block (which Homeside hold title to since sub-division) Their valuation was $100,000.
Westpac Personal Flexi Loan $34,000 (12.99% / 7 years - 2% payment monthly = $680) BUT Homeside should not include this in calculator as it is to be refinanced by:
WESTPAC Equity Loan against land ($45,000 IO Loan comprising $11,000 to pay out Homeside, plus $34,000 to pay out Personal Loan)_
WESTPAC Construction Loan ( $175,000) to build new IP. Rent appraisal of $380 weekly. AGAIN was not planning to include this in Homeside updated data, as it is not approved or even processed yet, so cannot be substantiated. Want to keep info I give Homeside simple if it looks like servicing.
CREDIT CARDS AND OTHER DEBTS - NIL
SINGLE, WITH NO DEPENDANTS
Hope this is all you need. Thanks so much for doing this. Was dreading trying to get our broker to do it.
Ta
Cami

 

[CAMI]

OOPS, Need to reduce Homeside loans to 270,000. It is getting late......

 

[Shahin_Afarin]

Based on those figures - servicing will not be an issue.

Regards

Shahin

 

[Aaron_C]

Based on those numbers you should service fine, even if you include the WBC loan + rental for the construction. Can't see the issue.

 

[CAMI]

Thanks so much Aaron. Not sure why Homeside were so twitchy last time, maybe because of the broker - who knows how he processed the application. And we did originally apply for 95% LVR. But had a bad experience overall with them: wouldn't capitalize LMI, wouldn't include rental income from house to be constructed, wouldn't include extra quotes for driveway etc (or so the broker said, although others have since denied this). Anyway, have been happy with Westpac so am revisiting them for this deal.
This deal is actually for a friend, not for me. My own portfolio is much bigger (for those of us who like to compare sizes.) BUT it has been whittled down a lot these past few years as we were BURNED quite badly using equity to invest in "safe" managed funds etc just before the GFC. Still sorting out that mess, so have learned a lot myself, and made LOTS of mistakes over the years. Still gotta love property though.
Thanks everyone for your contributions.
CAMI