Loan Serviceability - Associate Lease

Discussion in 'Loans & Mortgage Brokers' started by Goosehead, 29th Feb, 2020.

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  1. Goosehead

    Goosehead Well-Known Member

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    I am having trouble sourcing finance for a renovation at the moment. I have no credit card or personal loans, just two mortgages on investment properties. I am not matching serviceability requirements according to the banks lending criteria.

    Question is I have two associate leases on the vehicles we own which most lenders have never heard of and asked for the lease loan which there is none. How does the serviceability calculator take into account the improved cash flow?
     
    Goosehead, 29th Feb, 2020
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    They don't take those variables into account for addbacks

    Ta
    Rolf
     
    Rolf Latham, 29th Feb, 2020
    #2
  3. Hamish Blair

    Hamish Blair Well-Known Member

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    I had one and it confused them. Ended up cancelling the associate lease for a few months during refi process.
     
    Hamish Blair, 1st Mar, 2020
    #3
  4. Lindsay_W

    Lindsay_W Well-Known Member

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    Which bank?
    You may find that you have better serviceability with a different lender
     
    Lindsay_W, 1st Mar, 2020
    #4
  5. Goosehead

    Goosehead Well-Known Member

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    NAB. Trouble is I want to sell as soon as its finished. It is actually the banks predicted time line for renovation and sale of the property with no income (no tenants).
     
    Goosehead, 6th Mar, 2020
    #5
  6. Lindsay_W

    Lindsay_W Well-Known Member

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    Need Another Bank - likely Pepper would do, need to present it to the lender correctly, if you say reno and sell they think "development finance" which is typically commercial in nature and not something most resi funders want to hear...
    See a broker asap
     
    Lindsay_W, 6th Mar, 2020
    #6
  7. Peter Pakarinen

    Peter Pakarinen Member

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    If the lease is in the business then some lenders will look a gross profit. Other lender will want you to take out the leases and add it back into servicing.
     
    Peter Pakarinen, 9th Mar, 2020
    #7