Living cost calculations

Discussion in 'Loans & Mortgage Brokers' started by Tim & Chrissy, 5th Dec, 2015.

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  1. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Its not really supposed to be accurate, but an estimate of what you can afford. If it could be proved that you couldn't really afford to have paid the loan, then you may not have to pay it back.
     
    Last edited by a moderator: 4th Nov, 2016
    Terry_w, 6th Dec, 2015
    #21
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    If you personal serviceability is ok, then there are other lender mix options for better serviceability Id guess.

    ta
    rolf
     
    Last edited by a moderator: 4th Nov, 2016
    Rolf Latham, 6th Dec, 2015
    #22
    Tim & Chrissy likes this.
  3. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    My plan is to use the lower % to pay down the principal faster. Then find a lender with lower living cost calculations and/or will take into account our other income.

    So our debt will reduce/savings increase faster at the lower rate and if we find the right lender our borrowing capacity will increase and get us across the line for the next IP.
     
    Last edited: 6th Dec, 2015
    Tim & Chrissy, 6th Dec, 2015
    #23
  4. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    In that situation I'd base it on what ever yield you're prepared to accept on the median price of the area you're interested in. If you can borrow more than you need, happy days.

    These calcs are for ball park estimation only and shouldn't be relied upon to apply for finance - if you're serious about finding out your capacity, speak to a broker. You'll get a much more accurate picture then.
     
    Jess Peletier, 6th Dec, 2015
    #24
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  5. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    I understand why they are doing it however I think they have become too cautious and too far removed from reality.

    When the minimum payment is $750 p.w. and we contribute over $1,350 p.w. over an extended period of time there is clearly enough cash flow there to service a low cost IP
     
    Tim & Chrissy, 6th Dec, 2015
    #25
  6. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    Any ideas on who may be more a more suitable lender for my situation?
     
    Tim & Chrissy, 6th Dec, 2015
    #26
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