Is it possible to get loan in 3.x% range based on rental income only?

Discussion in 'Loans & Mortgage Brokers' started by RoadRunner, 19th Feb, 2020.

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  1. RoadRunner

    RoadRunner Active Member

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    For a self-employed with less than 2 years financials, can one get loan in 3.x% range based on rental income only?
    Subject to meeting serviceability of course.

    2nd question:
    If one moves from self-employed back to PAYG, how many months payslips minimum required to get loan? If payslips coming weekly is it enough to apply after couple of payslips?
     
    Last edited: 19th Feb, 2020
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member

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    LVR ?

    needs a bunch more data pls



    ta
    rolf
     
  3. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member Business Member

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    Subject to serviceability, of course you can qualify for a loan.
    * You'd need to get a letter from your accountant verifying that your business is trading profitable with no ongoing debts.
    * Rental income doesn't go as far as most people thing for serviceability purposes, you'll likely need quite a bit of it, especially if some of the properties have debt against them.

    There are lenders that will lend on just an employment contract, if the LVR is 80% or less. Over 80% 3 months in the new job would get access to a decent selection of lenders.
     
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  4. Brady

    Brady Well-Known Member

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    1 payslip w/ CBA if perm.
     
  5. sumterrence

    sumterrence Well-Known Member

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    For NAB just your employment contract will do even before you commence. But has to be a perm position.
     
  6. tobe

    tobe Well-Known Member

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    Or just a signed contract with a start date...
     
  7. RoadRunner

    RoadRunner Active Member

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    It's the same employment. Just the tax structure is changed. Previously it was PAYG and then on accountant's advise moved to PTY. Employer won't issue a new contract simply because I am changing tax structure back to PAYG.

    Would a letter from employer confirming "full time employment" be enough substitute for employment contract?
     
  8. Brady

    Brady Well-Known Member

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    Technically that needs sign off from credit as outside of policy unless you're also able to provide previous year tax and use lower figure of the two, but pretty much should be added to policy IMO as it's always accepted.
     
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  9. sumterrence

    sumterrence Well-Known Member

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    Employer letter to confirm you are FT employee will be fine. Everything else are fairly easy to explain to credit and this is also very common amongst the IT/medical sector.
     
  10. tobe

    tobe Well-Known Member

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    Most recent one wasn’t. 1st payslip is a settlement condition and they want to see funds to complete. Annoying as previously the gift letter woulld be enough. Reverting to actual policy rather than interpretation more lately it seems.
     
  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member

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    yes, but, sometimes that interpretation is protective for the Credit person and the borrower.

    Frustrating I know

    ta
    rolf