Lenders w/ best serviceability and view on car allowance/company car?

I currently have 2 houses with Suncorp. I have a lot of equity in my PPOR, and would like another 30k or so for a car, but my broker (or the one I've currently used) says I'm currently at my limit with Suncorp, thus pretty sure with many other lenders as well.

I have about 617k owning (worth about $1,025,000), and my income is about 71k+6K in Bonus + Fully maintained Car + Rental income of $21,120 (excluding 7.7% management fee) at $440/week + other income from Shares etc. Both properties are not crossed. The investment has 376k owning but is fixed as a really low I/O rate so would like to leave that with Suncorp, and really looking at options with the PPOR.

1) Is there any other lenders you can suggest I can recommend to him that are more lenient than Suncorp? I will probably drop the broker and seek advice elsewhere as well.

2) How do lenders view a car allowance for work? I'm able to receive another 20k (before tax) but it will state "car allowance" on the pay slips but after tax and with my accountant calculations I will be well ahead by taking it. Do lenders take that "extra" income from a car allowance into account when looking at serviceability?

3) As the other option, do any lenders still view what I currently have which is fully maintained company car as about an extra 5k of income from a serviceably aspect?

Thanks for your help!

 

Some lenders will allow you to take 100% of the allowance.

Borrowing is determined by the income, not the available equity.

Are the properties cross collateralised?
Did you pay LMI?

Not enough data for anybody to comment on what your borrowing should be with lender ABC or XYZ.

 

Do you know off the top of your head which lenders?

They are deliberately not crossed and no LMI has been paid.

Thanks for your input, Ive added extra detail for your assistance! Thank you!

 

To name a few CBA and Firstmac will take 100% of car allowance

There may be others like Pepper. Though per advice it was case by case depending on if you have a car loan to go with it.

Very few lenders will take dividend income for servicing purposes.

 

Great thanks.

Based upon the info I provided above. What generally should my serviceability look like?

 

Haha! 0 Kids, Single (Divorced), 0 Hecs now, 0 all Personal Loans, No credit card (cancelled it recently), about 90k in savings and shares, expenses are about $1100 a month and going down. Repayments are: $111 (IP), $1023 (PPOR) and $1332 (IP) on my property.

Thank you!

 

Pauline, since you already have a broker, would be useful to ask them this given they already have the data. You can't receive holsitic credit advice by posting details on a forum when there may be several more questions.

 

By the sounds of it your TRP includes an actual car, not an allowance for a car. This is a bit different, i.e. your employer isn't giving you additional cash for car usage (allowance for a car), they're actually giving you a car to use.

A bit technical, but lenders treat the two differently.

For allowances, some lenders will allow 100% of the allowance. This appears on your payslip as income and can be included. So i've seen deals where clients get a 10-20k allowance for a car p.a. as part of their work arrangements. Some (lots) lenders allow all of this for servicing.

When its actually a car provided, but not additional income, some lenders will allow an additional 5k in income to be included in the app (few, not all). Haven't tested it for a while, but thats the general max amount lenders will include as an add back to income. CBA did recently adjust their policy to stop including this, but there'll likely be a handful of lenders that allow some income to be used from this. But it won't be much (5k max).

More generally speaking, assuming it's the latter, your not going to get a world of difference in servicing arrangements between different mainstream lenders. The additional 5k in income may translate into another $30-40k in income. With this income size and profile, your existing broker is correct, the level of debt you have relative to your income size is too high.

I suspect based on the numbers provided that you've passed borrowing limits with most/all lenders.

No real need to drop your broker because they're telling you the numbers that come out. Assuming their competency is fine, its just the results of your current position & lender calculators today.

Increasing income is your answer from here. Its a bit harder for single income applicants nowadays, but million dollar debt sizes on <100k incomes usually doesn't work, particularly when bulk of debt is OO.

 

I have the option of taking an allowance of 20k PA instead of a fully maintained company car. After tax, I work out quite a bit ahead financially by taking this option. Do you have an idea off the top of your head which lenders would include "Car Allowance" as stated on the payslip for serviceability?

I could pay cash for a car, then potentially get an equity loan for the value to get the money back once my income has increased - would that work also?

Again, is there any particular lenders you know will include it? Even non mainstream is fine.

 

Take it as cash, thats considered a 20k income increase with many lenders and should have a 150k+ borrowing power impact. Still not sure it'll be enough to do what you want to with most lenders. Plenty of lenders will include allowances if its on a payslip.