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Serviceability calculations

Discussion in 'Property Finance' started by Brad Goodwill, 28th Jun, 2016.

  1. Brad Goodwill

    Brad Goodwill Member

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    Gold Coast
    I know this is crystal ball stuff, but does anybody have an educated view on when they think the market will cool enough so that the strict bank serviceability calculations will be relaxed?
    I am going from dual income to single (separation/divorce) and need to refinance loans to one income and according to my broker, I fail the serviceabilty calcs.
     
  2. Simon Moore

    Simon Moore Mortgage Broker - Melbourne Business Member

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    Melbourne
    Have you looked at multiple lenders? You can often get an extra 20-30%, assuming you have multiple IPs.
     
  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    This question is asked on a weekly basis around here. The answer is they'll never go back to what they once were. There'll always be a little give and take as lenders appetite moves, but it won't even come close to what it was.

    There are some reasonably high servicing lenders still available, it's possible you're looking at the wrong lenders for your financial profile.
     
  4. Brad Goodwill

    Brad Goodwill Member

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    Location:
    Gold Coast
    I suppose I am trusting that my broker is looking out for me, but according to them, there is nothing I can do.
     
  5. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Adelaide, SA
    In many cases if the broker isn't used to multi property transactions as their standard deal, they can be unaware of the options out there. Not so much malicious intent, just ignorance to lender options.
     
  6. Coota9

    Coota9 Well-Known Member Premium Member

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    Many successful investors outgrow their initial broker as they move forward with their investment journey,don't take his advice as absolute without getting multiply opinions from different brokers.
     
  7. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    @Brad Goodwill, you might have some options. There's still a few niche lenders out there who have pretty generous servicing. Just confirm with your broker which were the most generous lenders she or he modelled your situation with. That will be telling.