Hi Team, Looking for some advice please! Recently sold one apartment and have another for auction early March. Plan is to use proceeds to purchase a house in Melbourne for residential investment (need the rental income to service). Rough purchase price of $1.4m - I’ll have approx 18-20% deposit plus costs. Loan approx $1.15m. Can do 80% if that helps more than just saving LMI. A few quirks in my income: 1) I work for a car company and get 3 cheap cars deducted from my pay (give to family) - they can be returned at anytime (employee rental) unlike normal leases. Need a lender to not take these off my pay (about $15k per year). 2) Recieve an annual bonus which I need included to help with serviceability Plan is to move home with parents (rent free) whilst renting out new property. Heard some lenders don’t accept a “rent free situation”. Ideally loan would be interest only but happy to go with best option to help serviceability (P&I may help?). Want to work towards a preapproval by early next week - understanding serviceability is tight - want to avoid any valuation risk etc - if val or rental income is deemed less after I purchase I’ll be short for serviceability! Do some accept purely purchase price? Fixed % of purchase price as rent etc? Had basic discussions with NAB/ANZ but struggling to get to the number - still about $150k off what I need and questions over my car deductions which lowers my salary. Would greatly appreciate any advice on which lender is best (favourable serviceability calc for my situation) and how to approach or broker contacts!! Thank you!!
I suspect you won't find a lender that will ignore the car deductions. What you've described is no different from a person's credit card. They can pay it off and cancel it at any time, but until they do, lenders will assume it's an ongoing liability. As inconvenient as it may be, consider handing the cars back so you can get the loan. You can always get the cars again later if you feel it's affordable. That extra $15k net income per month will probably do quite a lot for your serviceability.
Agree with Pete You’ll prob have to get rid of those cars Sounds like you might be able to get this to work with second/third tier lenders - have a broker look into this for you. Some good ones have responded above. Cheers Jamie
speaking of serviceability, sorry to hijack OP say you're remunerated with a base and a quarterly retention payment - consistently demonstrated over 4 year period - would the majors consider this as "bonus income" or part of normal salary. the retention sum is 40% of base so can have a material impact.
Probably going to be shaded i'd say, so they'd take 32k of it rather than the full 40k. Not many will take 100% of it, other than some niche lenders (Firstmac probably will). Quarterly payments are sometimes considered commission type payments rather than bonuses (usually annual). Nonetheless, the actual application of both types of payments are usually at 80% of true value. It'll likely need to be evidenced via a letter confirming last 2 years payments amount or potentially payslips showing funds coming in.
Yes, they'll include that in your serviceability as long as the paperwork is available to prove consistent payment.
