Banks and serviceability of loans

Hi all,

A little bit confused after meeting with CBA mortgage lender today regarding serviceability of loan and amount available to borrow. Prior to meeting in person spoke to CBA lender over the phone and emails and information or impression I got is very different.

Following is our position
PPOR loan 560 K value of property 1.2 Mil, monthly repayments $2816 loan term 20 years
Car loan outstanding $40000 monthly repayment $800 4 years left
CBA CREDIT card limit $ 10k
Offset account $25 K
Expenses including all bills and loans above fortnightly $3700 some of the money is used for around house improvements and $ 1000 to offset.

No other loans . Combined income $167000 per annum, Superfunds $550K and $140K

Talking to a broker provided we can draw equity as deposit in the amount of $175K we could borrow 80% from another lender to purchase Investment property valued at approximately $700K with rental estimate $570 per week.

I told CBA that $175 would be used for investment property deposit plus costs.

The bank manager after calculating advised maximum borrowing is $525K . I asked for IO loan for 2 years.

He also advised that as bank has no security over IP they can not include potential rent income . I also asked him what if I went with CBA for IO and he told me position would move to $550K. I also asked him what if we refinance loan to add car (not our preferred option) he advised maximum $695K.

So what now I have equity but no borrowing power for what we are looking for?
Talk to broker and change bank or this is the best it gets?

 

talk to a broker CBA is rather tight on their serviceability

 

Is there any reason you wouldn't tie in the 80% new purchase with CBA as well? That would be the easy fix?

Otherwise simple to pull together with another lender.... Depending on future objectives you may also benefit from some additional advice around options to restructure.

 

Will do thank you.

 

I aske and max is $550 if I don’t refinance car with refinance $595 but not willing to do that as We are planning to pay out in year 3.