Serviceability

Hi all
What are the lenders that are not so tight on serviceability/ borrowing power?
Not sure how accurate their online borrowing calculators are . Entering the same info, 2 of of the majors give me around $950k and Suncorp $1.38m . Big difference.

 

thanks Rolf
Do they all use debt to income ratio?

are there 2nd tier lenders that would lend more?

 

Online cals are at best guestimations to lure you in. Your best bet is to run your scenario through a broker who will provide you with proper calculations.

 

Some lenders are more concerned about DTI than others. It will depend on the specific details as to where you'll find the biggest borrowing capacity as each lender has a different income policy with different benchmarks, shading, etc.

Some non-banks can deliver better servicing but only in certain scenarios e.g. for investors where existing debt is not buffered the same way as bank lenders

 

Thank you ! that’s good to know.

 

Suggest you engage a good broker asap

 

So which of the mainstreams are most generous with serviceability hurdles these days?

 

That depends on your specific circumstances. Some work slightly better for investors, others for owner occupiers. Type of employment and type of income are a significant factor, as is different types of existing and proposed debt. Actual interest rates and loan types come into it as well. Different lenders may treat all of this data differently, so they'll all give different results.

 

OK, investor loan, P&I, refis.

Most generous mainstream lenders excluding the likes of Pepper, La Trobe etc. Are Macquarie pretty good in that respect?

 

Macquarie might come up okay but nowhere near the others you mention. Of the mainstream lenders there may be better or worse, again depending on your circumstances.

Sorry but you won't get a straight answer unless provided with specific individual information.

 

Resimac, Firstmac, virgin/BOQ

 

Online borrowing calcs are very basic in the data they require therefore the results are skewed and seem to be marketing tools rather than actually giving helpful and accurate information.

 

Macquarie shade rental income to 75% vs 80% with most other lenders.
They also apply a higher minimum monthly expense to Credit Card limits (no big deal if you don't have any)
Best servicing is outside mainstream lenders but yes it does depend on personal overall circumstance

 

Look at the terms of the loans. Interest rates, etc... No free lunch is my experience.