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IP borrowing while wife on maternity leave

Discussion in 'Property Finance' started by housechopper2, 5th Oct, 2016.

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  1. housechopper2

    housechopper2 Member

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    Advice please!

    Our PPOR is financed with a 20% deposit, IO loan, and we have substantial equity built up in it due to value increases over the last 4 years we have owned it. We are looking to purchase our first IP (IO) and the bank (big 4) wont assess her income in serviceability unless we supply a 'return to work' letter. We aren't in a position to supply the letter, hence the amount they will lend is much lower than we need.

    Any advice? Perhaps there are other lenders that will consider her pre-mat-leave pay? Or simply more generous lenders out there?

    Housechopper
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Jamie Moore just started a thread on this topic. Have a look - about a week ago
     
  3. housechopper2

    housechopper2 Member

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    That post said you need the return to work letter...
     
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Here's the post for anyone interested - Can you borrow while on maternity leave?

    A return to work letter will be required with any lender willing to consider lending whilst on mat leave.

    Cheers

    Jamie
     
  5. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Why can't you provide a letter? All lenders will require one.

    Which of the big 4 is it? If one of the more conservative like CBA, you may have success one a single income with some of the more generous lenders out there.
     
  6. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    To verify the post mat leave income lenders will want to see that letter, so that will be a sticking point. The other option is whether there's an alternative lender which will be able to assess the situation without including her income - but that is very much down to the specific figures for your scenario.
     
  7. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Lenders will want a letter from employer that your partners position is being held for her upon return from Mat leave as you will need to demonstrate you can service the debt according to lenders interpretation, not yours.

    If you are dealing direct to bank then consider a broker to help you solve the issue as we have access to many lenders calculators and policy set. There are some excellent examples of my colleagues above who will be able to look into it further for you so hit one up and see whats possible???
     
  8. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Servicing varies a lot between big 4 lenders so depending which one you spoke to you may have other options.
     
  9. Ashby

    Ashby Member

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    In my experience some lenders can be very specific about the wording they require in the letter so best to get it sorted with plenty of time to spare if you have an inefficient HR/Payroll department at work!