Borrowing capacity

What the beep change - exclude rental income of IP???
We saying those who have high loans will never sell down as won’t be able to get these loans again in future

 

Yes, there are those who would not currently qualify for loans they took out in the past.

 

Question for the brokers. While taking out additional loans from 2nd tier lenders maximises the total loan amount, for someone with little debt, is there advantage of using Pepper over big4?

 

Well it must for some lenders the l last loan I got I was told it was because I had plenty of equity. A senior person at my bank said it was possible to increase my loan 50% because of the equity and assets I had after being knocked back by 3 brokers and one bank. You can earn as much as you like but if you dont have equity you cant get a loan you need to balance both.

 

This is just going to stunt investment and fuel more rental crisis as investors are capped out

 

Which lender please

 

Still doesn't explain the servicing problem, but lenders look at loan limits, not net of offset figures.

 

There’s no servicing issues current repayment is $500 per month. New loan will be cash neutral/positive all inclusive of property upkeep. What’s the issue?

 

Better borrowing power with Pepper. They don't care about DTI. They work off actual repayments not a projected payment if rates increase 3%. If the LVR is low, their rates are cheaper.

 

Thanks

 

There's probably a lot more to this than what you've included in your summary.

 

Probably a stupid question but why don't the big banks create spin offs that can offer these sorts of deals to capture more market share? They get the best of both worlds: the mass market, and also the market that seems to fall below APRA's radar.

 

Nope

 

What is the impact of cash in offset and equity (other than LVR) on borrowing capacity these days?

 

Where do you think lenders like Pepper get a lot of their money from? I'm fairly certain that some of their money is funded by ING.

 

No benefit to you as far as borrowing capacity is concerned.

 

How is non big 4 not regulated by the same APRA rules?

 

Apparently different rules.

 

Not deposit taking institutions? This is presumably why they don't usually offer 'real' offsets?

 

Oh, what's a "non-real" offset? I have a few with these guys so I'm curious.