Home duties for second applicant

Which lenders are okay with PAYG for primary applicant, while 2nd applicant (spouse) is on home duties (1 dependent)?

i.e. Only one applicant can show consistent payslips.

Currently looking at investment rates with these lenders:

• Macquarie, 2.29%, ($248 annual fee)
• HSBC, 2.37%, ($195 annual fee)
• Athena, 2.19%, ($0 annual)
• MyState, 2.28%, ($8mo,= $96 annual fee)

I’d love to ask my broker, but they only seem to want to work with Macquarie.

Particularly drawn in by MyState and Athena due to low/no fees ongoing.

MyState cash back of $2k will cover their upfront fees. HSBC are doing no upfront fees with ~$3k cashback

 

Nearly all banks are ok with applicant 2 not working, you just have to satisfy you can service the loan with your income.

 

I've never encountered a lender that isn't okay with one of the applicants not working.

 

This makes no sense.

 

Pretty much any lender will support that...

If I were you I'd start by asking your broker why they've only recommended Macquarie if they've done a full assessment. There are plenty of other options but might be a reason for this.

 

Serviceability calc, loan limit, lvr allowed, offset etc are all features you should consider BEFORE looking at the interest rate, annual fees or cashback.

 

Yeah, I’d say it’s more around if lenders see serviceability any differently? For risk, does 1 income affect servicing? Seems everyone agrees that it’s no.

To the other points,
Loan is in the 250 - 500k range, LVR much lower than 60%. Refinancing OO to IP. No other owned property.

BTW, HSBC just hiked the rate to 2.57% for <70%, so less attractive, but they are a ‘full-service bank’ with branches.

 

Your income is the most important number.

what does that do for you as a loan customer?

 

If I am taking out an offset and a new credit card, then I am probably also moving all my banking and ending my 25+ year relationship with my other bank. Unless new lender doesn’t offer regular banking things like ATMs, occasional bank cheque, then loan is just for the lending, yes.

 

As big as hsbc is internationally, they have one of the smallest number of branches in australia. Really dont think you are approaching this right. Nobody cares about a 25 year banking relationship. You can, and probably should, have ‘relationships’ with multiple banks and lenders.

talk to a good broker who works with multiple lenders and listen to their advice.