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Loan applications, rental statements, income and outgoings

Discussion in 'Property Finance' started by dabbler, 28th Jan, 2016.

  1. dabbler

    dabbler Well-Known Member

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    18th Jun, 2015
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    Location:
    Sid en e - olympic city
    Hi all,

    Looking at the broader range of lenders and more toward the smaller ones, do any of the lenders that you know look over statements or do they purely look at these for gross rental income weekly or monthly etc ?

    I ask because I want to know is there any point at all in separating the outgoings so they are off the statements for loan application purposes.
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    14th Jun, 2015
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    1,158
    Location:
    Gold Coast
    most take the gross at 80 %

    for a normal rental

    some have rules of 6 to 8 % of max yield regardless if you are getting 18 %

    ta
    rolf
     
  3. Redom

    Redom Mortgage Broker Business Member

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    Location:
    Sydney (West) and Canberra
    They usually don't pay attention to the outgoings on the rental statements - to account for this they take 80% of the gross rental income earned and add it to your taxable income (they then apply an interest add back for deductions related to interest expenses).

    For the self employed, they generally still usually verify rental income via rental statements rather than tax returns which usually has a full breakdown of deductions/expenses associated with the property (unless there is a need to use the tax return figures for rental income - e.g. full time investor).
     
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Location:
    Canberra and Sydney
    They just look at gross and take 80%

    Only time they'll usually flag something is if the word "vacating" pops up.