Returning expat borrowing power conundrum

Discussion in 'Loans & Mortgage Brokers' started by mike7575, 15th May, 2022.

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  1. mike7575

    mike7575 Well-Known Member

    Joined:
    16th Jul, 2015
    Posts:
    52
    Location:
    Eastern Suburbs, Sydney
    Hi PCers,

    Looking for a bit of an indication on my borrowing power here.

    I'm looking to buy a PPOR in Sydney. My situation:

    -Returning expat last year, no meaningful PAY statements for the last 2 years.

    -Been in a tech sales job for around 5 months, 125k base, commission is 125k or more on top of that. I understand you need to show 2 years of comms which I cannot.

    -1 x investment property in north ryde owned with my sister. She has just moved to London so can't use her income. Debt is 205k, value is probably $650k. Returning $400 per week in rent so very much positively geared. Low-rise apartment so very few costs.

    -No personal debt, no credit cards or liabilities.

    -There's a place I quite like which I think I could get for around 900k.

    Questions:

    -With LVR of 90% what would my borrowing power be? And would this change with LVR of 87.5% or 85%? I'm not concerned about paying LMI
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,598
    Location:
    Gold Coast (Australia Wide)
    A core piece is to use a lender that will allow the comms to be used

    there are some options once you have 6 mths up

    Not enough data around the balance of the question especially around expenses, for example, private health insurance, life insurance etc

    The unit most lenders will saddle you with all the debt, and give you half the rental and all the expenses, so after all that this will hurt borrow cap a little.

    Might work without comm, might not



    ta

    rolf
     
  3. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

    Joined:
    23rd Aug, 2015
    Posts:
    1,546
    Location:
    Bella Vista
    There's a misconception with commission and bonus that HAS to be recieved for 2 years.

    Depending on which bank,

    Bonus- if recieved half yearly and constant, it's fine to use and no need to wait for 2 years.

    Commission- there is 2 banks on top of my head where if you recieved it consistently for 3 months they will annualised it and use that figure at 80% for servicing.
     
  4. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,130
    Location:
    03 9877 3000
    Relying on only 1 year of variable income & requiring LMI is not a friendly combination for lenders.