How much can I borrow?

Discussion in 'Loans & Mortgage Brokers' started by almostthere, 14th May, 2017.

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  1. almostthere

    almostthere Well-Known Member

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    Hello Experts,

    Can someone help me find my current borrowing capacity with any one of the lenient lenders?
    Looking forward to purchase an IP.

    Thanks in advance.

    Income
    ======
    Income 1 : 110k
    Income 2 : 45k
    Rent : 22k

    Expenses
    ========
    IP Loan : 400k
    PPOR loan: 741k
    Currently paying combined mortgage of about 5k per month Current lender NAB..Can't refinance loan as I have paid LMI earlier

    Credit cards: 5k
    2 adults , 1 child
     
    almostthere, 14th May, 2017
    #1
  2. spludgey

    spludgey Well-Known Member

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    I'd think that even post APRA you'd be able to at least purchase one IP with those numbers!
    Get a mortgage broker to confirm, but I reckon you'll be right.
     
    spludgey, 14th May, 2017
    #2
  3. jins13

    jins13 Well-Known Member

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    Any HECs debt as well? Also, if you can either reduce or get rid of the credit card.
     
    jins13, 14th May, 2017
    #3
  4. almostthere

    almostthere Well-Known Member

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    Hi , no other debts.
    Will need 5k limit at minimum for paying bills etc
     
    almostthere, 14th May, 2017
    #4
  5. kr11

    kr11 Well-Known Member

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    as u cant draw any equity out, you will need deposit and stamp duty funds first
     
    kr11, 14th May, 2017
    #5
  6. almostthere

    almostthere Well-Known Member

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    hi thanks, I have sorted that out, just trying to find out my max borrowing capacity for now..looking for property worth about 800k


    Between, I can draw equity out have quite a bit left.
     
    almostthere, 14th May, 2017
    #6
  7. BarneyRubble

    BarneyRubble Well-Known Member

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    You don't need to disclose it, however my thoughts were:
    - what is your age
    - what is your exit plan (for the nearly 2M of debt)
     
    BarneyRubble, 14th May, 2017
    #7
  8. almostthere

    almostthere Well-Known Member

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    Mid 30s..

    Don't really worry about these debt as these are good debt. Having excellent CG with both my properties at the moment. I wish to buy new properties as long as bank trust me
     
    almostthere, 14th May, 2017
    #8
  9. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    I wouldn't be so sure these days.

    I haven't crunched the numbers - but the PPOR debt is quite high so will bring down servicing a bit.

    Sure - might fly with the third tier guys with generous borrowing capacity calcs and possibly WBC group lenders.....but might not work with those calculating OFI debt at 7.4%

    Again - I haven't crunched the numbers so could be wrong.

    Gone are the days when I could look at a basic rundown of someones financial situation and know whether servicing would be ok or not :-(

    Living expenses come into play here too. Those need to be documented and broken down.

    Cheers

    Jamie
     
    Jamie Moore, 14th May, 2017
    #9
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  10. dabbler

    dabbler Well-Known Member

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    Debt is debt & that is how regulators are looking at things, needs to be paid back, needs a plan.....
     
    dabbler, 14th May, 2017
    #10
    Corey Batt likes this.
  11. Corey Batt

    Corey Batt Well-Known Member

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    Same thoughts the moment I saw the PPOR debt - there is going to be some serious servicing restrictions being pushed on that so it would come down to all the details being provided to an investment focused broker who can crunch the options.
     
    Corey Batt, 14th May, 2017
    #11