HECS Serviceability Assessment

Discussion in 'Loans & Mortgage Brokers' started by Stevem009, 30th May, 2022.

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  1. Stevem009

    Stevem009 Member

    Joined:
    30th May, 2022
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    Location:
    Melbourne
    Hi all,
    I am about to purchase my 3rd investment property. My HECS payments are $455/month, although with rental income my HECS payment would be over $1,000/month.

    Do you know which lenders are best to calculate HECS from my personal income only? Otherwise my borrowing power is significantly reduced (upwards of $100k).
    Cheers
     
    Stevem009, 30th May, 2022
    #1
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    HECS is paid based on taxable income. In my experience lenders simply use your PAYG income, they don't tax into account rental income given it's likely offset by expenses.

    You've indicated elsewhere that you're receiving salary packaging benefits. Best to consider this as part of your base salary to assess HECS. I use the following calculator:

    Calculators and tools
     
    Peter_Tersteeg, 30th May, 2022
    #2
    Stevem009 likes this.
  3. Lindsay_W

    Lindsay_W Well-Known Member

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    All of them
     
    Lindsay_W, 30th May, 2022
    #3
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    CBA are a bit not so great here. because they will add extra hecs based on a portion of the rental income, while most lenders will simply go off the payslip deduction

    ta
    rolf
     
    Rolf Latham, 30th May, 2022
    #4
  5. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Some lenders tier HECS based on your total income inc rental income .

    Some will just tier it based on your salary
     
    Tony Xia, 30th May, 2022
    #5
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